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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

In order to implement the business reorganisation and transfer of personnel between group companies, we must comment that there are two options:

  1. Transfer the staff with liquidation of social benefits: resignation or mutual agreement;
  2. Transfer staff without settlement of social benefits: transfer of staff.

Requirements for Predecessor and Successor Parties

  • Transfer Agreement

A Transfer Agreement must be signed between each worker and both companies on the date of the incorporation of the first to his new employer.

  • Communications to the Ministry of Labour

It is convenient to send the following communications to the Administrative Labour Authority: From both companies informing that all labour liabilities in charge of the first relative to the transferred workers will be assumed from the corresponding date by the second, attaching a copy of the transfer agreements.

  • Communications to Social Health Insurance (ESSALUD), National Superintendence of Tax Administration (SUNAT), Health Provider Companies (EPS), Administrators of pension funds (AFPs)

The Personnel Transfer Agreements must be brought to the attention of:

  • Financial institution where CTS (Compensación por Tiempo de Servicios is deposited) in order to keep account for future deposits.
  • Public Health Insurance Administrator (EsSalud).
  • Private Pension Funds Administrator (AFP).
  • Include employees in electronic payroll.
  • Exclude employees from electronic payroll.
  • Private insurance companies, if corresponds.
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