Employees’ Rights in Case of a Transfer of Undertaking A transfer of an undertaking occurs when an undertaking, business or part of a business is transferred to another owner. In this context, the European Court of Justice focuses on the concept of the “economic unit” and not on individual concepts of the transfer of an […]
Transfer of Undertakings in India
Employees’ Rights in Case of a Transfer of Undertaking There are specific provisions that protect ‘workmen’ in cases of transfer of business undertakings. These however do not extend to non-workmen; in such cases, the terms of the employment contract and/or the internal policies of the company would have to be examined. Where the ownership or […]
Transfer of Undertakings in China
Employees’ Rights in Case of a Transfer of Undertaking When an employer decides major company matters that directly implicate the interests of employees, the employer should discuss such matters with the employee representative congress or its entire staff. It should only make a decision after consulting with the trade union or employee representatives. The consultation […]
Transfer of Undertakings in Portugal
Employees’ Rights in Case of a Transfer of Undertaking When proceeding to the business transfer that involves the transfer of undertaking (one or more business units or parts of business units, i.e., organised means pursuing an economic activity) transferor and transferee must consult with employee representatives and provide relevant information on the planned transfer. The […]
Transfer of Undertakings in Dominican Republic
Employees’ Rights in Case of a Transfer of Undertaking The transfer of a company, a branch or an agency thereof, or the transfer of another worker to another company, transmits all the privileges and obligations resulting from the employment contracts that apply to the employee assigned or transferred. The new employer is responsible, together with […]
Transfer of Undertakings in Singapore
Employees’ Rights in Case of a Transfer of Undertaking Where the transfer is covered by section 18A of the Employment Act, employees would generally have the right to (i) be notified of the transfer and of matters relating to the transfer; (ii) consult with the employer; and (iii) preserve the original terms and conditions of […]
Transfer of Undertakings in Luxembourg
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, […]
Transfer of Undertakings in Romania
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 […]
Transfer of Undertakings in Switzerland
Employees’ Rights in Case of a Transfer of Undertaking If a transaction qualifies as a (partial) business transfer, the employment relationships existing at the time of the transfer (including the ones under notice) are automatically transferred including all rights and obligations as of the date of transfer, unless the employee objects to the transfer. If […]
Transfer of Undertakings in Spain
Employees’ Rights in Case of a Transfer of Undertaking Employees’ rights and obligations are subrogated to the new shareholder and remain intact. This includes special benefits and retirement compensation that employees may be entitled to. Requirements for Predecessor and Successor Parties The Workers’ Statute requires formal notice to employees in the event of transfer of […]
Transfer of Undertakings in Chile
Employees’ Rights in Case of a Transfer of Undertaking The Chilean Labour Code states that total or partial modifications relating to ownership and possession (actual, constructive or mere possession) of the company, will not affect the rights and obligations of employees arising from their individual contracts or collective agreements, which will maintain their continuity with […]
Transfer of Undertakings in Mexico
Employees’ Rights in Case of a Transfer of Undertaking In connection with the sale of a business or transfer of undertaking, the FLL generally requires the acquiring entity to retain the selling entity’s workers, as well as to assume existing benefit liabilities, regardless of whether the benefits are privately sponsored (e.g., company-sponsored medical insurance) or […]
Transfer of Undertakings in Colombia
Employees’ Rights in Case of a Transfer of Undertaking In case of a transfer of undertaking, the employment contract is not terminated, suspended or modified as long as there are no substantial changes in the activities of the new employer. Therefore, the employees have the right for their contract to remain with the same conditions, […]
Transfer of Undertakings in Norway
Employees’ Rights in Case of a Transfer of Undertaking The rights and obligations of the former employer ensuing from the contract of employment or employment relationships in force on the date of transfer shall be transferred to the new employer. The new employer is also bound by any collective pay agreement that was binding upon […]
Transfer of Undertaking in USA
The Rights of Employees in Case of a Transfer of Undertaking in the USA
Transfer of Undertakings in Poland
Employees’ Rights in Case of a Transfer of Undertaking Employees’ rights in the case of a transfer of undertaking are defined in the Labour Code. 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 […]
Transfer of Undertakings in Canada
Employers cannot defeat legitimate bargaining rights held by a union either by organising their affairs in an attempt to change their legal identity or by selling the affected business to a third party (whether or not that third party has any relationship with the vendor). Two or more legally distinguishable entities may be considered to […]
Transfer of Undertakings in Sweden
Employees’ Rights in Case of a Transfer of Undertaking In conjunction with the transfer of a business from one employer to another, the rights and obligations under employment agreements and employment relationships that existed at the time of the transfer to the new employer shall also be transferred. Where an employee’s employment agreement and the […]
Transfer of Undertakings in France
Employees’ Rights in Case of a Transfer of Undertaking In France, an employee cannot object to a transfer of undertaking as the transfer is operated automatically. A refusal could constitute grounds for dismissal for disciplinary reasons. The automatic transfer concerns any kind of employment contract (fixed-term contracts, trial period contracts, suspended contracts for illness, etc.). […]
Transfer of Undertakings in Australia
Employees’ Rights in Case of a Transfer of Undertaking Where a transfer of employment occurs, the transferred employee’s service with their original employer will be counted as continuous service with their new employer. As such, any benefits acquired under the NES (such as annual leave) will be retained through the transfer of business and the […]
Transfer of Undertakings in Belgium
Employees’ Rights in Case of a Transfer of Undertaking If a business or a division of a business, forming an economic entity, is transferred to a new employer, so that there is a ‘going concern’ of the activity of the business (division) after the transfer, there is a transfer of undertaking. Requirements for Predecessor and […]
Transfer of Undertakings in Germany
Employees’ Rights in Case of a Transfer of Undertaking All of the transferor’s employees automatically transfer to the transferee, with the terms and conditions of their employment contracts and their seniority remaining intact. Prior to the transfer, each affected employee must be informed in writing about the transfer, its reasons, the background, the social and […]
Transfer of Undertaking in Brazil
Employees’ Rights in Case of a Transfer of Undertaking Employee labour conditions must not be reduced or negatively impacted from a transfer of undertaking. Employers are prevented from making changes to employment terms and conditions that are detrimental to employees, whether or not the employee has previously consented to the change. Due to the concept […]
Transfer of Undertakings in United Kingdom
Employees’ Rights in Case of a Transfer of Undertaking The Transfer of Undertakings (Protection of Employment) Regulations 2006 (“TUPE“) applies to employees when either: a business or asset is transferred from one entity to another; or there is a change of identity in an entity providing a service (e.g. outsourcing). The effect of TUPE is […]
Transfer of Undertakings in Japan
Employees’ Rights in Case of a Transfer of Undertaking In a share transfer, there will be no change in the employment conditions and status; therefore, no transfer of employees’ rights and obligations will take place. In a merger, regardless of whether it occurs through absorption or consolidation, any rights and obligations under the employment contracts […]
Transfer of Undertakings in Argentina
Employees’ Rights in Case of a Transfer of Undertaking In case of a transfer of undertaking, employees are transferred as a matter of law. The consent of the employees is not necessary, and no notice is required. The new employer must maintain the employee’s work category, benefits, rights, salaries and seniority acquired with the prior […]
Transfer of Undertakings in Netherlands
Employees’ Rights in Case of a Transfer of Undertaking Upon the transfer of a business, the rights and obligations of the employer and that business under the existing employment contracts with the employees will be automatically (by operation of law) transferred to the acquirer of the business. A prohibition of termination is applicable in case […]