July 8, 2019 - Comments Off on Important changes to the regime of transfer of business

Important changes to the regime of transfer of business

With the purpose of a better understanding of the legal concepts, the Law now defines economical unit as well as the contractual acquired rights which now should include not only remuneration, basic salary and its complements, but also social benefits paid by the employer. As a result whenever there’s a transfer of business affecting employees, the news is that the employee shall be entitled to maintain the rights in which social benefits are included.

Another relevant change is the right of opposition of the employee which now is established in the Law. The employee which contract is supposed to be transferred is given a period of 10 days after notification of such a transfer by the employer to oppose. This period is in fact a 5 days’ period to create an ah hoc commission to represent him/her in the negotiations, as well as another 5 days’ period to formally oppose in writing if that’s the employee’s decision.

In case opposition is filed by the employee, the employer cannot transfer such a contract to the transferee and in such case if there is termination of contract by the transferor, the general rules of unfair dismissal and respective compensation rights shall apply.

Also in the package of new changes to the Law we can highlight the new period of 2 years (previously it was of 1 year only) during which both the transferor and transferee can be found jointly liable for any claims which arise from the transfer of contract.

Lisbon, 26th June 2019
By EDGE International Lawyers – Employment Department
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