Requirements for Predecessor and Successor Parties
In the event the proposed transfer is subject to the Business Mergers and Acquisitions Act, the Successor Party shall, no later than thirty days before the reference date of the merger/consolidation and acquisition, serve a written notice expressly describing labour conditions to any labour staying after the merger/consolidation and acquisition according to the negotiation between the Predecessor and Successor Parties. Any employee must inform the new employer of their decision to accept the conditions in writing within ten days of receiving the notice. Failure to provide such notice will be considered as consent to remain with the new company following the merger, consolidation, or acquisition. The service years shall be recognised by the Successor Party.
For a transaction not subject to the Business Mergers and Acquisitions Act, the transfer of employees is typically resolved through a tripartite agreement, wherein the employee, the former employer, and the new employer execute an agreement to terminate the original employment contract and establish a new contract with the new employer.
