Parliament Adopts Amendments to the Labor Code Concerning Employee Agreements in the Event of a Business Transfer
Kyiv • UNN
The Verkhovna Rada passed a European integration draft law regulating succession in labor relations in the event of a change of ownership of an enterprise, obliging the new employer to extend employment contracts and inform employees of the transfer.
The Verkhovna Rada has adopted the European integration bill No. 8244, which regulates succession in labor relations when the owner of an enterprise changes. This was reported by UNN with reference to MP Oleksiy Honcharenko.
After almost a year, the Verkhovna Rada has adopted the draft law on succession in labor relations. Voted for - 269
According to him, the employer is supposed to continue the employment contract with employees in case of transfer of the business or some part of it to another person. The employer must also inform employees of the date of such succession.
This draft law is one of the European integration drafts.
It provides for amendments to the Labor Code of Ukraine regarding succession in labor relations and proposes, inter alia:
- In case of dismissal of an employee due to a change in the essential terms of the employment contract to the detriment of the employee, the employer shall be deemed to be responsible for the termination of the employment contract or employment relationship.
- In the event of a transfer of a business entity, the employment relationship of employees continues with the transferee. The rights and obligations under labor contracts that existed between the employees and the alienator are transferred to the acquirer.
He also proposes to establish that the alienator and the acquirer are obliged to inform in writing or by means of technical means of electronic communications the elected body of the primary trade union organization (trade union representative), in the absence of a primary trade union organization - freely elected and authorized representatives (representative) of employees, and in their absence - employees about the transfer of the business entity no later than 10 working days before the transfer:
- date or estimated date of transfer of the entity;
- reasons for the transfer of the business entity;
- legal, economic and social consequences of the transfer of the business entity for employees;
- any measures taken with respect to employees.
Addendum
On July 20, 2023, the Committee on Social Policy and Protection of Veterans' Rights recommended that the Verkhovna Rada adopt in the second reading and as a whole the government's draft law on amendments to the Labor Code of Ukraine regarding succession in labor relations No. 8244.
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