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 the seller and the purchaser have the obligation to consult their trade unions or the employees’ representatives with respect to the judicial, economic and social implications related to the transfer of undertaking.
All of the seller’s existing rights and obligations arising from the employment contracts and collective labour agreements will be transferred to the purchaser, except for cases when the seller is subject to restructuring or insolvency procedure. Nevertheless, the transfer of undertakings cannot be a reason for the individual or collective dismissal of the transferred employees by the seller or purchaser.