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 the new employer. This so-called “legal continuity principle” must be considered on a case-by-case basis.
Requirements for Predecessor and Successor Parties
No special requirements are necessary if the legal continuity principle applies.