In today’s business environment, ownership changes or reorganizations are becoming increasingly common. Whether we are talking about the sale of a company, the takeover of a business unit, or the transfer of part of the activity to another employer, employees should know that the law offers them special protection.
- What a Business Transfer Means
A transfer can involve:
- the entire business (the company as a whole),
- a business unit (headquarters, branch, or workplace),
- or part of the activity (for example, a department).
In all these cases, employees are protected under the provisions of the Labor Code.
- Employees’ Rights During a Transfer
Preservation of the employment contract – all rights and obligations employees had with the former employer (the transferor) are fully taken over by the new employer (the transferee).
Protection against dismissal – the transfer cannot be used as a reason for dismissals, whether individual or collective.
Continuity of employment – employees keep their position, seniority, and all salary-related and extra-salary benefits existing at the time of the transfer.
- Obligation to Inform and Consult
Both the transferor and the transferee must inform and consult the union or employee representatives prior to the transfer.
The information must cover:
- legal implications (what changes legally),
- economic implications (financial conditions),
- social implications (impact on employees).
Conclusion
A business transfer does not mean losing your job or the rights you have earned. The law ensures the continuity of employment contracts and protects employees by requiring transparency and prior consultation from employers. If you are going through such a process and have doubts about your rights, consulting with a lawyer specialized in labor law can help you avoid potential abuses.
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