Do we have to take over the staff?
When a business transfers to new owners
When all or part of a company is transferred to a new owner, a number of employment law obligations arise for both the transferor and the transferee, an exception being in the event of bankruptcy. That is, when someone buys a business from a bankruptcy trustee. If there is no change of ownership, that is, when a limited liability company changes owners, these rules do not apply because the business does not change owners.
Here are some of the main rules:
- It is prohibited to dismiss personnel solely with reference to the transition.
- Upon transfer, the employment is transferred to the transferee.
- The transferor and the former employer are also jointly responsible for historical financial obligations with the transferee.
- The employee may object to the transfer, which will result in dismissal due to lack of work.
- Employees who have a preferential right to re-employment in a previous business also have that right against the transferee.
- The transfer requires that both the transferor and the transferor negotiate the matter with the unions that may be affected by the transfer.
- The collective agreement that applies to the transferor is transferred to the transferee. However, there are exceptions to this, such as the possibility of terminating the collective agreement.
- An exception to the transfer of the collective agreement is if there is already a collective agreement that can be applied.
- If the transferor terminates the collective agreement no later than 60 days before the transfer.
Common employment law risks associated with the transfer of business
Like anything else that is to be purchased, it is important that the transferee examines the item before purchasing it. Labor law risks are common in all companies. These risks should come to the surface before the transfer so that they can be handled to avoid future disputes. Many times these can be handled.
Good luck! Are you a manager or employer and have any questions? Don't hesitate to get in touch. 
Christoffer Lewinowitz
Employer lawyer
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