Employees’ Rights in Case of a Transfer of Undertaking
The transfer of an undertaking, business or part of a business to a new owner by agreement is subject to the Labour Code and Law no. 67/2006. The legal provisions grant a strong protection for the employees subject to the transfer. Prior to the transfer, both the seller and the purchaser have the obligation to consult their trade unions or the employees’ representatives with respect to the judicial, economic and social implications related to the transfer of undertaking.
All of the seller’s existing rights and obligations arising from the employment contracts and collective labour agreements will be transferred to the purchaser, except for cases when the seller is subject to restructuring or insolvency procedure. Nevertheless, the transfer of undertakings cannot be a reason for the individual or collective dismissal of the transferred employees by the seller or purchaser.
Requirements for Predecessor and Successor Parties
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. 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. Beginning one year following the transfer, the purchaser has the possibility to renegotiate the collective clauses with the employees’ representatives.