Employees’ Rights in Case of a Transfer of Undertaking
In case of a business transfer, all employees, rights and duties arising from an employment relationship with the seller that already existed on the date of the transfer are automatically transferred to the buyer. After a transfer of undertaking, employees are, as the case may be, protected against the termination or the unilateral modification of their employment contracts for economic reasons during a period of two years (such protection could be provided for in a collective bargaining agreement).
Requirements for Predecessor and Successor Parties
The buyer assumes all rights and obligations arising under the employment relationship with the seller. In addition, if a collective agreement remains applicable, the terms of employment can only be modified after the collective agreement expires. If no collective agreement applies, it is possible to harmonise the transferred employees’ terms of employment with those of the buyer’s other employees, provided that this harmonisation is mutually agreed on between the buyer and each individual employee.