Labor Law Aspects Of Workplace Transfers

The increasingly competitive market environment and changing demands of consumers and the public at large trigger more business transfers and reorganizations. Whether within the framework of a reorganization or a strategy to consolidate its market position, certain circumstances may lead to workplace transfers. This then raises legal problems. In this article we will review the transfer process from a labor law perspective, focusing on the severance pay and annual paid leave rights of employees of the transferred workplace.

The former Labor Code No. 1457 did not contain detailed provisions concerning the partial or full transfer of workplaces. Only some minor provisions regarding annual paid leave rights and severance pay were set forth under different articles (Article 14, 53) with respect to workplace transfers. The matter was tackled within the framework provided by the precedents of the Court of Appeals. However, following the introduction of the new Labor Code No. 4857 in