Recently, we have increasingly encountered the Transfer of rights and obligations from employment relations/with the so-called delimitation of employees/ according to the Labor Code no. 311/2001 as amended. In this article we prepared an overview of the Labor Code and practical advice for dealing with proper documentation to health insurance companies and the Social Insurance.
If an employer with a legal successor dissolves, rights and obligations arising from labour-law relations shall pass to such a successor, unless otherwise stipulated by special regulation.
(1) If a business unit, which is an employer or a part of an employer for the purposes of this act or if a task or activity of an employer or part thereof is transferred to another employer, the rights and obligations arising from the relationships governed by labour law with the transferred employee shall be transferred to the transferee employer.
(2) A transfer pursuant to Paragraph 1 is the transfer of a business unit, which preserves its identity as an organized group of resources (tangible assets, intangible assets and personnel), whose purpose is to carryout economic activity regardless of whether this activity is primary or secondary.
(3) The transferor is a legal person or natural person who ceases to be the employer on a transfer in accordance with Paragraph 2.
(4) The transferee is a legal person or natural person who becomes the employer of the transferred employees on a transfer in accordance with Paragraph 2.
(5) Rights and obligations of the hitherto employer towards employees whose labour-law relations ceased on the day of transfer shall remain unaffected.
(1) An employer shall be obliged, no later than one month prior to the transfer of rights and obligations arising from labour-law relations, to inform the employees’ representatives, and if no employees’ representatives operate at the employer, the employees directly in writing on:
(2) With a view to achieving consensus, an employer shall be obliged, at the latest one month prior to implementation of measures affecting employees, to negotiate such measures with the employees’ representatives.
(3) Obligations stipulated by paragraphs (1) and (2) shall also apply to the transferee employer.
If a transfer results in significant changes in an employee’s working conditions and the employee does not agree with the change, employment shall be deemed terminated by agreement pursuant to § 63 paragraph (1) letter (b) with effect from the date of the transfer. The employer shall issue an employee a written document concerning termination of employment relationship pursuant to the first sentence. An employee falling under the first sentence shall be entitled to a severance allowance pursuant to § 76.
Rights and obligations arising from labour-law relations shall upon the death of an employer who is a natural person pass to his/her heirs.
(1) If an employer or its part is sold, rights and obligations arising from labour-law relations shall be transferred from the selling employer to the purchasing employer.
(2) If, after withdrawing from a contract on sale of an employer or its part, the rights and obligations arising from labour-law relations are not transferred to another transferee, settlement of claims from labour-law relations shall be secured by the selling employer.
(3) If an employer-lessor leases part of the employer to another employer, rights and obligations towards employees of this part arising from labour-law relations shall be transferred to the employer-lessee.
(4) If, after the leasing termination of the employer or of part of the employer, the rights and obligations from labour-law relations are not transferred to another lessee, settlement of claims from labour-law relations shall be secured by the employer-lessor; this shall not apply to employees taken on by the employer-lessee after the start of the lease.
(5) If an employer is wound-up, the body that wound-up the employer shall determine which employer shall be obliged to settle the claims of employees of the wound-up employer or to enforce his/her claims.
(6) If, upon winding-up of an employer, liquidation is executed, the liquidator shall be obliged to settle the claims of the employees of the wound-up employer.
(7) If a transfer of rights and obligations arising from labour-law relations transpires, the employer shall be obliged to adhere to the collective agreement as agreed upon by the preceding employer, and this up to the termination of its validity.
(8) In a transfer of rights and obligations arising from labour-law relations from a present employer to a future employer, the legal position and function of employees’ representatives shall be retained until the termination of the function period unless agreed otherwise.
(9) The provisions on the transfer of rights and obligations under relations governed by labour law shall not apply to an employer whom a court has declared insolvent.
1. Health insurance company – the transferring employer from whom the employees are leaving shall deregister the employees on the last day on which they are employed by the company – code 2 K
2. Health insurance company – the acquiring employer shall register the employees on the first day they are employees of the new company – code 2 Z
3. The Social Insurance Institution – the transferring employer from whom the employees are leaving shall submit a Delimitation Protocol to the Social Insurance Institution. The protocol shall include:
4. The social insurance company will generate a new legal relationship identification number for the employees in the new company.
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