Transfer of employment contracts

The impact of reorganization/conveyance on employment contracts

Anticipate for better management

Thémis accompanies the managing director and his human resource collaborators throughout the reorganization process.

For each employee concerned by the changes which may be necessary, Thémis advises and puts into place particular procedures adapted to each situation and in negotiations, whether they be individual or collective.

The human aspect must not be overlooked, and anticipating these topics is often a condition of the success of the company's reorganization

During reorganization, Thémis also keeps watch over the repercussions thereof on personnel representation (mandatory consultations, the putting into place or modification of personnel representation institutions).

The human aspect must not be overlooked, and anticipating these topics is often a condition of the success of the company's reorganization.  Indeed, the chief executive alone is judge of the company’s organization, and must sometimes decide on its reorganization, by transferring a branch of its activity, incorporating a new company which brings in new assets, concepts or methods to be absorbed, whether these decisions be dictated by financial or strategic constraints to adapt for example to a technological transformation.

Certain features of French and European labor law are aimed, on the other hand, at protecting employee interests when implementing these operations and in particular the precariousness they can generate, by guaranteeing job stability.
For this purpose, the Labor Code requires that the change in the employer’s legal situation not impact the pursuit of the employment contracts attached to the company which has been reorganized or transferred.

For example, the buyer of a business is required to take on the employees attached to this business; the merger-acquisition operations must not entail the loss of the benefits acquired by the employees of the absorbed company, in all cases during an intermediate period.

From an individual standpoint, no amendment of the employment contract can be imposed upon an employee without his approval; from a collective standpoint, the collective benefits acquired must be maintained temporarily for a maximum period of 15 months. This period is then used to adapt the former status of the transferred employees, by means of negotiations with the employees and unions, to the conventional provisions which apply in the host company.
 

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