Are Employees Entitled to Pay When a Company Changes Its Name?

A Philippine labor-law guide for employers and workers

Short answer

A change in a company’s name does not affect employees’ pay, tenure, or benefits. It is merely a corporate housekeeping step (an amendment of the articles of incorporation) and does not create a new employer. Employees must continue to be paid on time and in full for all hours worked. No separation pay is triggered, and accrued seniority and benefits carry on uninterrupted.

The only time wages may lawfully stop is when there is no work actually performed under the “no work, no pay” rule and the employer has a valid basis to suspend work (e.g., a bona fide temporary suspension of operations) or the time off is charged to leave credits—none of which is caused simply by a change of name.

Legal foundations (Philippine context)

Corporate continuity despite a name change. Under the Revised Corporation Code (RA 11232), a change of corporate name is just an amendment; the corporation remains the same juridical entity. Rights and obligations—including employment contracts—survive the renaming.
Wage payment and timing. The Labor Code requires wages to be paid regularly and on time (commonly at least once every two weeks or twice a month at intervals not exceeding 16 days). A rebrand or name change is not a lawful ground to delay payroll.
Non-diminution of benefits. Article 100 of the Labor Code prohibits the elimination or reduction of benefits already enjoyed by employees. A rebrand cannot be used to reset tenure, pare down allowances, or “start over” benefits.
Security of tenure and authorized causes. Termination or suspension of work requires a valid cause under the Labor Code and compliance with notice and due-process rules. A name change is not an authorized cause.
Temporary suspension of work (“floating status”). The Code allows a bona fide suspension of business operations for up to six (6) months (often cited under the renumbered provision formerly Art. 286, now commonly referred to as Art. 301). During such suspension, no wages are due—but this requires a legitimate business reason and proper notices. A mere name change is not such a reason.

What stays the same when only the name changes

Employer identity The legal person remains identical; only the name/branding changes. Your employer-of-record stays the same.
Employment contracts All contracts, probationary periods, and confirmed regular status continue without interruption. At most, HR may issue an addendum noting the new corporate name.
Pay and benefits
- Basic pay, allowances, premiums (overtime, night shift differential, holiday pay), and 13th-month pay (PD 851) are unaffected.
- Accrued leaves, SIL, service awards, and seniority carry over intact.
- CBAs and company policies remain binding.
Social contributions and taxes SSS, PhilHealth, Pag-IBIG, and BIR reporting continues. The employer simply updates government records to reflect the new name; this does not excuse late remittances or missed payroll.

When can pay stop—and why a name change isn’t one of those times

Scenario	Are wages due?	Why
Employees continue working during/after the rebrand	Yes	Work performed must be paid; renaming is irrelevant.
One-off admin day for rebranding (e.g., signage change) and employees don’t work	Generally no (no work, no pay), unless company policy/CBA says otherwise or the day is charged to paid leave.
Employer requires staff to attend meetings/training for the rebrand	Yes	Required attendance is compensable working time.
Employer declares a temporary suspension of operations (valid, bona fide)	No during the suspension	Allowed up to 6 months; must be for legitimate reasons and properly notified. A mere name change doesn’t qualify.
Illegal lockout or employees were ready and willing to work but were barred	Yes (backwages may be due)	Employer cannot avoid pay by preventing work without lawful basis.

Practical tip: If the rebrand causes payroll system migration issues, the employer should still meet the statutory pay dates. “System change” is not a defense to late payment.

Separation pay is not triggered by a name change

Separation pay arises only for authorized causes, such as redundancy, retrenchment, installation of labor-saving devices, disease, or closure/cessation of business. Amounts (at law-mandated minimums) typically range from ½ month per year of service (e.g., retrenchment/closure not due to serious losses) to 1 month per year of service (e.g., redundancy/installation of labor-saving devices), counting a fraction of at least six months as a full year. None of these are implicated by a mere change of name.

Don’t confuse a name change with an ownership or structure change

Sometimes a rebrand coincides with a deal. Employee rights differ depending on what actually happened under corporate and labor law:

Stock sale (change in shareholders) The corporation (employer) remains the same; employment continues seamlessly. No separation pay is due just because the owners changed.
Asset sale (business sold but corporate seller remains) The selling employer may lawfully close or cease that line of business and separate employees with separation pay (rates set by law). The buyer is not obliged to absorb employees but may hire them anew.
Merger or consolidation The surviving corporation generally assumes assets and liabilities of the absorbed corporation by operation of law. Employment usually continues; if separations occur, the applicable authorized cause and separation pay rules apply.
Contracting/Substitution of employer-of-record Shifting employees to a different legal entity (even with the same brand) is not a “name change.” It requires lawful transfer and employee consent where terms materially change; non-diminution still applies.

Payroll & HR compliance checklist for a pure name change

For employers:

File the amended Articles with the SEC and update Business Name/Trade Name if any.
Update registrations with BIR, SSS, PhilHealth, Pag-IBIG, local permits, and bank payroll accounts.
Issue an HR memo/addendum to employees noting the new corporate name and continuity of employment and benefits.
Do not alter pay dates, rates, or benefits; avoid any gap in remittances.
Update payslips, IDs, and HRIS labels—but keep employee numbers and records continuous.

For employees:

Keep copies of payslips showing continuity across the renaming.
If asked to sign new papers, check that it’s an addendum (not a new contract with reduced terms).
Flag any delayed pay or reduced benefits; these may be labor-standards violations.

FAQs

1) Our payslips now show a new company name. Is that lawful? Yes. As long as the legal entity is the same and everything else (TIN, SSS ER number, etc.) maps to that entity, payslips can reflect the new name.

2) HR asked us to sign “new” contracts after the rebrand. Must we sign? You can sign an acknowledgment/addendum reflecting the new name. You are not required to accept worse terms. Any reduction of benefits risks violating the non-diminution rule.

3) We were told to go home for a day because of the rebrand. Will we be paid? Under no work, no pay, a non-working day is generally unpaid unless (a) it’s charged to paid leave, (b) company policy/CBA makes it paid, or (c) you were required to attend activities (which are compensable).

4) The rebrand coincided with layoffs. Is separation pay due? Not for the name change itself, but if the employer invokes an authorized cause (redundancy, retrenchment, closure, etc.), separation pay and 30-day notices (to both employees and DOLE) come into play.

5) Can the company reset our years of service after the renaming? No. A name change cannot reset tenure or service awards.

6) What if payroll was late because the bank account changed with the new name? Late wage payment may violate labor standards. Administrative or banking transitions are not valid excuses.

Model HR memo language (for a straightforward rebrand)

Subject: Corporate Name Change – No Change to Your Employment We are pleased to inform you that effective [date], [Old Name], Inc. has changed its corporate name to [New Name], Inc. This is a change in name only; the corporation remains the same legal entity. Your employment, tenure, pay, and benefits are unchanged. Payslips and official documents will reflect the new name going forward. For any questions, contact HR at [contact].

Key takeaways

A corporate name change alone never justifies withholding, delaying, or cutting employee pay.
No separation pay is owed for a mere renaming.
If work is performed, pay is due; if work is not performed, no work, no pay applies unless there’s a contrary policy/leave/CBA or the downtime is employer-mandated training/meetings.
Be careful not to confuse a rebrand with a change in employer (asset sale, merger, substitution). Different rules—and potential separation pay—apply there.

This article is for general information only and is not a substitute for legal advice on specific facts. If a rebrand is occurring alongside a corporate transaction, consult counsel to map the correct labor-law steps (notices, separation pay, or continuity planning).