Employee Rights When an Undertaking is Transferred in Romania

1. Employee’s Rights

The transfer of an undertaking, business or part of a business to a new owner by agreement is subject to the Labor Code and Law no. 67/2006. The legal provisions grant a strong protection for the employees subject to the transfer.

The transfer of undertakings cannot be a reason for the individual or collective dismissal of the transferred employees by the seller or purchaser.

2. Requirements for the Seller

According to Law no. 67/2006, the Seller has the obligation to notify the Purchaser about all the rights and obligations that are transferred between parties.

3. Requirements for the Purchaser

The purchaser is bound by all rights and obligations resulting from the existing employment contracts at the time of the transfer and has the obligation to maintain all the rights until the contracts expire or are terminated.

For more information on these articles or any other issues involving labour and employment matters in Romania, please contact Magda Volonciu and Associates
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