Business Transmission and Registration: Employer's Guide

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 and social security obligations prior to the transmission.

Collective Labor Rights

• Workers' rights are maintained under the same collective agreement.
• The mandate of worker representatives is not terminated.
• Both employers are obligated to inform workers' representatives about the transmission.

Business Registration: A Step-by-Step Guide

Business registration is the process by which an employer informs the Treasury of the Social Security (TGSS) office of their business activity.

Registration Process

1. The registration application must be made on the official form.
2. Submit the form to the Provincial Administration TGSS in the territorial area where the employer's address is located.
3. Upon successful registration, the TGSS assigns the employer a unique registration number for identification within the relevant scheme.
4. Registration authorizes the employer to open trading accounts, enroll employees, and make contributions.

Worker Affiliation: Enrolling Employees in Social Security

Affiliation is the administrative act by which the TGSS recognizes an individual as part of the Social Security system for the first time. This applies to individuals conducting activities that require them to be within the system's scope.

Key Aspects of Affiliation

• Affiliation is mandatory for all single and comprehensive systems within the Social Security framework.
• It is exclusive and for life; no one can be forced into another mandatory provident scheme.
• Once completed, the worker receives a document confirming their affiliation to social security, which is unique and valid for life.