Transfer of business premises automatically transfers employees, preventing the former employer from terminating their contracts.
Legislator summary
AI generatedThe Supreme Court quashed the lower court's dismissal of the plaintiffs' appeal to restore their employment. The plaintiffs were nurses whose contracts were terminated by the hospital after a cleaning company took over specific tasks, claiming this constituted job liquidation. The court found that under Article 231 of the Labor Code, the transfer of part of the workplace automatically transfers the employees to the new employer, meaning the former employer cannot lawfully terminate their contracts. Consequently, the case was remanded to the lower court for a new decision based on this legal principle.
Legislator headnote
AI generatedArt. 231 § 1 k.p.; Art. 393 § 12 k.p.c.: The transfer of part of a workplace to a new employer automatically transfers the employees to the new employer, thereby preventing the former employer from terminating their employment contracts.