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09. Transfer of Undertakings
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09. Transfer of Undertakings

Employees’ Rights in Case of a Transfer of Undertaking

Rights and obligations arising from labour relations may only be transferred in cases laid down in the Labour Code or some other statutory provisions.

Where activities, or part thereof, or tasks, or part thereof, are transferred from one employer to another employer, the rights and obligations arising from labour relations are transferred to the full extent to the new employer (the Labour Code sets forth other detailed conditions for the transfer).

The rights and obligations of the hitherto employer towards employees whose labour relationships were terminated by the date of the said transfer shall remain unaffected unless other statutory provisions stipulate otherwise.

If the notice was given by the employee due to the transfer of rights within 15 days from the day when the employee was informed of such a transfer, the employment relationship will end no later than the day preceding the effective date of this transition.

If the employee was not informed about the transfer of rights, he/she may terminate for this reason, stating that:

  1. if the notice was given before the effective date of this transition, the employment relationship ends on the day preceding the effective date of this transition;
  2. if notice of termination was given within 2 months from the effective date of this transition, the employment relationship ends upon expiration of the notice period, which is 15 days and begins on the day the notice was delivered to the employer.

If notice of termination is given by an employee within 2 months from the effective date of transfer of the rights and obligations arising from labour relations or within 2 months from the transfer effective date of the exercise of rights and obligations arising from labour relations or where, within the same time-limit, an employment relationship of an employee is terminated by agreement, the employee may demand the determination by the court that the termination of the employment relationship occurred due to substantial deterioration of working conditions in connection with the transfer of rights and obligations arising from labour relations or in connection with the transfer of the exercise of rights and obligations arising from labour relations. Where termination of an employment relationship occurs due to a reason above, the employee is entitled to severance pay.

Requirements for Predecessor and Successor Parties

Before the effective date of transfer of rights and obligations (arising from labour relations) from the hitherto employer to another employer, both parties shall be obliged to inform thereof, sufficiently in advance (however no later than 30 days before the transfer of said rights and obligations to the transferee) the trade union organisation and the works council and consult them, with a view to reaching agreement, on:

  1. the determined or proposed date of transfer;
  2. the reasons for such transfer;
  3. legal, economic and social implications for the employees;
  4. envisaged measures relating to the employees.

Where neither a trade union organisation nor a works council operates at the enterprise (undertaking) of the employer, the transferor and the transferee shall inform the employees, who will be directly affected by the transfer latest 30 days before the effective date of the transfer of the rights and obligations to another employer.

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