When a business is transferred, in the three years following the transfer both the transferor and the transferee are jointly and severally liable for any labor obligations arising before the transfer. The new employer acquires the labor and social security rights and obligations of the former employer, including pension commitments and any other additional employee welfare obligations that were incumbent on the former employer.

For further information, visit the extended version of our online Guide to Business:

Labor and Social Security regulations

Prepared by Garrigues

Last updated: 28|06|2011