1. Employee Rights
If an undertaking (business) or part of an undertaking (business) is transferred via a legal transaction, all rights and obligations of the transferor, arising from employment relationships existing on the date of transfer, shall automatically be transferred to the transferee.
Employees can only object, if their working conditions substantially change following the transfer. Nonetheless, the parties of the employment contract may change the terms and conditions thereof by mutual agreement any time.
2. Requirements for Transferee Party
In a business transfer, even if the identity of the employer changed as result of the transfer, the employment relations of the employees working in that business would not be statutorily affected, as they would be automatically transferred to the transferee. Following the transfer, the transferee not only becomes a party to all the employment contracts, but also assumes all the rights and obligations in connection with the employment relationships.