Employees’ Rights in Case of a Transfer of Undertaking
The employment relationships of the selling company’s employees carry on with the buyer company, on the same conditions. The employees are transferred automatically. However they may challenge the transfer if, for instance, they were not part of the undertaking transferred. The transfer of undertaking itself does not represent a reason to dismiss employees. The employees transferred keep all the rights they have accrued with the selling company. Should the employment relationship of the transferred employees be subject, within 3 months following the transfer, to significant changes because of the transfer of undertaking, the employees may resign for just cause. In this case, the employees may claim indemnity in lieu of notice. For managers (dirigenti) a similar protection is provided by the applicable collective agreement.
Requirements for Predecessor and Successor Parties
As per buyer and seller companies’ obligations, the law provides that seller and buyer companies are jointly and severally liable for all the credits accrued by the transferred employees with the selling company at the moment of the transfer, and that the buying company shall apply terms and conditions provided by the National Collective Bargaining Agreement applied by the selling company, unless replaced by more favorable terms and conditions. Also, in case of transfer of undertaking within companies with more than 15 employees, the law obliges both seller and buyer companies to implement a Union procedure before the transfer.