Employees’ Rights in Case of a Transfer of Undertaking
Under the law, the new employer becomes a party to the current work relations. Consequently, under the principle of a legal successor, the new employer acquires any and all rights resulting from the work relations established with the previous employer and all obligations with which the previous employer was burdened toward the employees of the entity. This entity’s employees preserve the rights they were entitled to prior to the business transfer and they are bound by the same duties they had toward the previous employer.
Requirements for Predecessor and Successor Parties
The new employer is bound by the content of the employment relations in force at the time of the transfer. The content of the employment relation is shaped not only by the employment contract but also by normative agreements the hitherto employer was a party to. The new employer is obligated to apply the provisions of collective labour agreements of employees who were covered for a period of one year prior to the day of the business transfer.