PAGCOR Casino Sale Could See Lower Bids If Staff Retention Is Required

Prospective buyers of Philippine Amusement and Gaming Corp-controlled Casino Filipino venues may resist any requirement to retain existing staff, with that obligation potentially lowering bid values, according to a legal analysis by Philippine law firm Geronimo Law. The paper examined the employment implications of PAGCOR’s planned disposal of about 40 Casino Filipino branches and satellite venues through an asset sale.

Asset Sale Shapes Employment Terms

The proposed privatisation of the gaming regulator’s Casino Filipino chain is still under review by the Governance Commission for Government-Owned or -Controlled Corporations, the body that oversees state-owned entities. PAGCOR chairman and chief executive Alejandro Tengco has previously said the agency hopes to complete the process by the end of this year, subject to approval from the GCG and ultimately the Philippine president.

Geronimo Law said the structure of the transaction matters. Because the deal is being handled as an asset sale rather than a share sale, buyers would not be legally required to absorb Pagcor employees working at Casino Filipino venues. In that setup, employment would generally be terminated by the seller, with any claims resting against PAGCOR rather than the purchaser.

Buyers May Resist Absorption

The law firm said trained gaming personnel are scarce, which means buyers are likely to want dealers, surveillance officers, and slot technicians. Even so, it said absorption appetite would probably be highly selective, and bidders should be expected to resist a mandatory hiring condition.

If a requirement survives into the bid terms, Geronimo Law said it would likely be reflected in lower offers and met through the engagement of the most marketable job classes. The paper, which was first reported by the Manila Bulletin, also outlined 3 possible workforce outcomes: redeployment within PAGCOR, employment by the buyer, or separation with retirement and separation benefits.

Geronimo Law added that any obligation for winning bidders to absorb part of the affected workforce would arise only through the bidding terms and the asset purchase agreement, rather than through existing labour law. It said transferred workers would start a new employment relationship with the private operator, meaning their length of service would not automatically carry over unless the transaction documents specifically provide for it.

Civil Service Rules Apply

Employees who are not absorbed and cannot be redeployed would be separated by PAGCOR, with the buyer bearing no liability for them, the analysis said. The paper also noted that Pagcor personnel are civil servants, so any reduction in headcount would have to follow civil service rules that apply to government reorganisations.

The legal analysis presents the staffing issue as one of the key points likely to shape the eventual terms of the sale. It said the treatment of employees will depend not only on the bidding framework but also on how the transaction documents are written. For potential buyers, the final package could determine both the size of the workforce they inherit and the price they are willing to pay.

Source: GGR Asia

PAGCOR Casino Sale Could See Lower Bids If Staff Retention Is Required

Asset Sale Shapes Employment Terms

Buyers May Resist Absorption

Civil Service Rules Apply

Comments