Safeguarding individual and collective employee rights in the event of a transfer of undertakings

Abstract

This paper meticulously analyzes the mechanisms for safeguarding the individual and collective rights of employees in the event of a transfer to a new employer. In this context, the protection of employees is facilitated through the rules governing the automatic transfer of employment contracts from the "old" to the "new" employer while maintaining identical working conditions. Consequently, the status of employees remains unaffected irrespective of any alterations in the activities undertaken by the new employer and decisions concerning the company transfer. In this sense, the assurance of job security serves as a counterbalance to the managerial authority of the employer and the freedom of entrepreneurship. The essence of the principle of employment security is encapsulated in the prohibition of initiating dismissals by the employer in the event of structural changes. Accordingly, the successor employer assumes the rights and obligations of the predecessor while preserving the legal status, thereby safeguarding the employees impacted by the transfer. Furthermore, legal continuity remains unbroken, even in terms of rights and obligations emanating from collective labor agreements, which continue to produce legal effects even under the successor employer.

Keywords

• transfer of undertakings
• transfer of company
• employment contract