The Safeguarding of Employees` Rights in the Event of Transfers of Undertakings, Businesses or Parts of Undertakings or Businesses
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Abstract
Lithuania like all other new EU member states has faced the task not only to harmonize labour law system with EC law but also to guarantee common social values – protection of the employees in the event of transfers of undertakings, businesses or parts of undertakings or businesses. During the transfer, not only the transferor and the transferee, as the present and future owners of company, but also the employees, as a part of an
undertaking, have the interest in the outcome of the action. Baring in mind changing economic – social – political situation, European Community elaborates legal regulations and seeks so that employees’ rights would be protected in all situations of a transfer of an undertaking, even when a company becomes insolvent. Because of this reason there was a Council Directive No. 2001/23/EC adopted, which substantially interchanges Directives No. 77/187/EEC and No. 98/50/EC. The above mentioned Directive includes protection of workers from the groundless redundancies as well as other guarantees (such as information and consultation) that are applied in the event of transfer of an undertaking or part of it or bankruptcy. This means that in any case of transfer of undertakings, businesses or parts of undertakings or businesses, new employer must overtake all employment and collective bargaining agreements. In other words the transferee together with the transferred company receives all the workers with the same conditions that were set by the previous employer.
Articles 63 part 3 and 138 of the Lithuanian Labour Code include only partial protection of the employees in the event of transfer of an undertaking or part of it. This is why the purpose of the questions discussed in this article is whether Lithuanian regulation of protection of workers in the event of transfers of undertakings, businesses or parts of them fully corresponds with the objectives and requirements of the directives, whether the terms applied in the Directive are understood in the same way as they are understood in the European Community and other EU member states.
The conclusion after examining legal basis and state practice is that in Lithuania, during the events of transfer of undertakings, businesses or parts of undertakings or businesses, stability of employees’ legal relations, regulated by art.
138 of Lithuanian Labour Code, are safeguarded. Yet rights and duties (working conditions), which arise from labour relations that were present on the day of transfer, do not remain. It is also noticed that the transferee of undertakings, businesses or parts of undertakings does not have the duty to inform and consult prior to the transfer.
undertaking, have the interest in the outcome of the action. Baring in mind changing economic – social – political situation, European Community elaborates legal regulations and seeks so that employees’ rights would be protected in all situations of a transfer of an undertaking, even when a company becomes insolvent. Because of this reason there was a Council Directive No. 2001/23/EC adopted, which substantially interchanges Directives No. 77/187/EEC and No. 98/50/EC. The above mentioned Directive includes protection of workers from the groundless redundancies as well as other guarantees (such as information and consultation) that are applied in the event of transfer of an undertaking or part of it or bankruptcy. This means that in any case of transfer of undertakings, businesses or parts of undertakings or businesses, new employer must overtake all employment and collective bargaining agreements. In other words the transferee together with the transferred company receives all the workers with the same conditions that were set by the previous employer.
Articles 63 part 3 and 138 of the Lithuanian Labour Code include only partial protection of the employees in the event of transfer of an undertaking or part of it. This is why the purpose of the questions discussed in this article is whether Lithuanian regulation of protection of workers in the event of transfers of undertakings, businesses or parts of them fully corresponds with the objectives and requirements of the directives, whether the terms applied in the Directive are understood in the same way as they are understood in the European Community and other EU member states.
The conclusion after examining legal basis and state practice is that in Lithuania, during the events of transfer of undertakings, businesses or parts of undertakings or businesses, stability of employees’ legal relations, regulated by art.
138 of Lithuanian Labour Code, are safeguarded. Yet rights and duties (working conditions), which arise from labour relations that were present on the day of transfer, do not remain. It is also noticed that the transferee of undertakings, businesses or parts of undertakings does not have the duty to inform and consult prior to the transfer.
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Please see Copyright and Licence Agreement for further details.
