Business Transmission and Registration: Employer's Guide
Classified in Law & Jurisprudence
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Business Transmission: What Employers Need to Know
Business transmission occurs when a company changes ownership, such as through a sale, succession, or subrogation. If the owner dies, their heirs are responsible. Otherwise, the business is typically transmitted through a purchase. This process has important implications for workers:
Individual Employment Contracts
- Transmission of a business does not, by itself, terminate employment contracts.
- The business is transferred from the transferor employer to the transferee.
- The assignee assumes the rights and obligations of the assignor.
- A system of joint liability is established in case of breaches by either employer, covering:
- Labor obligations arising after the transfer (settled for 2 years).
- Job duties