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Transfer of undertaking: can employees refuse a change of employer? - CMS LawNow
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According to a recent position of the Bulgarian Ministry of Labour and Social Policy (MLSP), employees cannot object to a transfer to another employer when the undertaking employing them has also been transferred. The transfer to the new employer is mandatory and cannot be circumvented, even if the employees object to it. Their only option is to resign.
This opinion seems to deviate from the current practice of the European Court of Justice ruling that employees have a right to object to a transfer based on the fundamental freedom of the contract they enjoy, and thus have a recourse other than resignation.
For more details on this issue, follow this link to the main article.According to a recent position of the Bulgarian Ministry of Labour and Social Policy (MLSP), employees cannot object to a transfer to another employer when the undertaking employing them has also been transferred. The transfer to the new employer is mandatory and cannot be circumvented, even if the employees object to it. Their only option is to resign.
This opinion seems to deviate from the current practice of the European Court of Justice ruling that employees have a right to object to a transfer based on the fundamental freedom of the contract they enjoy, and thus have a recourse other than resignation.
Background
The transfer of undertakings and businesses is common. Such transfers may occur in various forms, including mergers and acquisitions, transfers of businesses as going...
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