In the event of a transfer of an establishment or part thereof to another employer, the latter becomes by operation of law (‘automatically’) a party to the existing employment relations. Employment relations with employees employed in an establishment or part of an establishment at the time of takeover by another employer shall continue the same conditions. Only a change of employer occurs. There is no termination of contracts of employment in such a situation. There is therefore no obligation to issue a labour certificate.

It is not possible to cancel the effects of the transfer of an establishment as a result of an agreement between the former employer and the new employer.

The new employer shall also be liable for the obligations arising prior to the acquisition of the entire establishment. Only in the case of the acquisition of a part of the establishment – the existing and the new employer are jointly and severally liable for liabilities incurred prior to this acquisition.

Within 2 months of the transfer of the establishment or part of the establishment to another employer, an employee may terminate the employment relationship without notice, with seven days’ advance notification. The termination of the employment relationship in this manner produces for the employee the consequences which the provisions of labour law establish for termination of the employment relationship by the employer by giving notice.

The transfer of an establishment or part thereof to another employer shall not constitute a reason justifying the termination of the employment relationship by the employer.