The recent Law no. 18/2021, of April 8, which came into effect the day after publication, amended the Labor Code, in particular the legal regime applicable to the transfer of a company or establishment contemplated in the Labor Code, which will now apply to situations of transfer by award of service provision through public tender, direct award or other means. The new rules also apply to public tenders or other means of selection, in the public and private sectors, during 2021, including those for which the award has been concluded.
Employees may exercise their right to oppose the transfer of the employer’s position in their employment contract in the event of the transfer, assignment or reversion of an enterprise or establishment, or of part of an enterprise or establishment that constitutes an economic unit, when this may cause them grave harm, in particular the purchaser’s lack of solvency or difficult financial circumstances; or if the work organization policy is not trustworthy, preventing the transfer of the employer’s position in their employment contract, while maintaining the link with the transferor.
The rules on the effects of the transfer of a company or establishment are applicable to all situations of transfer of a company or establishment by award of a contract for services by public tender or other means of selection, in the public and private sector, especially the award of surveillance, food, cleaning or transport services, coming into force at the time of the award.
In the transfer of ownership of a company or establishment, the position of the employer in the employment contracts of the relevant employees is transferred to the acquirer, as well as the liability for the payment of any fines imposed for labor infractions.
After the transfer, the employees transferred to the acquirer retain all contractual and acquired rights, specifically remuneration, seniority, professional status and functional content and acquired social benefits. The transferor is jointly and severally liable for the employee’s claims arising from the employment contract, its breach or termination, as well as the corresponding social charges, accrued up to the date of transfer, assignment or reversion, during the two years following this date.
03/03/2022