Employee Rights When an Undertaking is Transferred in Czech Republic

1. Employees’ Rights

When a new employer (transferee) takes over the activities of an employer (transferor) or part of the activities of an employer or where the tasks of an employer (or part thereof) are being transferred to another employer, the automatic transfer takes place, and employees´ rights and obligations pass on to the transferee (incl. the rights and obligations from the collective agreement, but those for no later than until the end of the following calendar year). The transferred employees´ rights and obligations under their employment agreements continue unchanged with the transferee.

2. Requirements for Predecessor and Successor Parties

There are no specific requirements for the predecessor and successor parties; a successor shall be deemed to be the new employer only, when it is qualified to continue the performance of tasks or activities of the predecessor (former employer) or activities of a similar type. This rule applies without respect to the legal grounds of the transfer and regardless of whether the ownership rights are being transferred.

For more information, please contact L&E Global.
This information was contributed by Dominik Bruha Advokat.
This entry was posted in Transfer of Undertakings on and modified on .