Company Succession and Legal Doctrine

The transfer of ownership of a company, work center, or independent production unit. The new owner takes over all labor obligations, social security rights, and pension commitments of the previous owner.

A period of time when a potential buyer or investor evaluates a company before making a decision.

A neutral third party who helps facilitate negotiations and resolve disputes during a company succession.

A group of representatives who make decisions on behalf of a company during a succession.

A transfer of ownership that occurs while the previous owner is still alive.

A transfer of ownership that occurs after the previous owner's death.

A legal requirement for company succession: the new owner must replace the previous owner in the role of entrepreneur.

A legal requirement for company succession: the essential elements of the business must be transferred to ensure its continued operation.

The process where the new owner of a company assumes all the rights and obligations of the previous owner regarding employment relationships.

The employee cannot prevent the transfer of ownership, but they have the right to resign if they disagree with the new ownership.

The date when the existing collective bargaining agreement ends, or a new agreement comes into effect. After this point, the transferred company must adhere to the new employer's collective bargaining agreement.

The transferring company must inform the workers' representatives (or directly the workers if there are no representatives) about the upcoming transfer. This information should include the date, reasons, legal and economic consequences for the workers, and any planned measures.

A period when the transferring company must consult with the workers' representatives or directly with the workers about the transfer.

Both the transferring company and the receiving company are legally responsible for fulfilling any labor obligations that existed before the transfer and haven't been addressed. This responsibility lasts 3 years after the transfer.

Both the transferring and receiving companies are responsible for any labor obligations that arise after the transfer if the transfer is deemed fraudulent or criminal.

A type of business arrangement where a main company (employer) assigns certain tasks or services to another company (contractor) to perform.

Outsourcing is legal, based on freedom of enterprise, but must comply with labor laws and regulations.

Outsourcing should be done for strategic, organizational, or economic reasons related to the main company's business activities.

Modern labor reforms aim to improve working conditions and protect worker rights in contracting and subcontracting arrangements.

A contract where a company hires another company (subcontractor) to carry out some of the same services originally agreed upon with the main company. No transfer of workers is involved. For example, a construction company may hire a specialized plumbing company to handle plumbing tasks in a project.

The main company hiring subcontractors and managing the overall project. They are responsible for ensuring all services are performed correctly.

The individual companies performing specific tasks for the principal company, often specializing in their area. For example, a cleaning company could be a subcontractor for an office building.

Both the principal company and the subcontractor are legally responsible for ensuring workers' salaries and social security contributions are paid during the contract period.

The principal company and subcontractor are both responsible for paying salaries for one year after the project ends and social security contributions for three years after the project ends.

The principal company is not held jointly liable when the project involves the construction or repair of a private individual's home, if the principal company is not carrying out the work as a business activity, or if there is a negative certification from the Social Security General Treasury.

When the Social Security General Treasury does not respond within 30 days to a request for information, the principal company is only responsible for the debts incurred during the current contract, not previous debts.

The principal company has a legal duty to inform the worker representatives about the details of the subcontracting agreement.

The responsibility for informing the worker representatives rests with the principal company.

The specific timing of when the principal company needs to share information with worker representatives is not explicitly defined.

The temporary release of the basic obligations to work and pay for work, while maintaining a legal bond between employer and employee.

A legally binding agreement between two or more parties, outlining terms and conditions for a specific task or project.

A company contracted to provide specific tasks or services to the principal company.

A company hired by the contractor to perform specific tasks within the contractor agreement.

The information provided to workers about the specific tasks, risks, and safety measures involved in the work.

The information provided to the principal company about the identity of the main contractor company and other key details.

The information provided to workers' representatives about the overall contract and working conditions.

The legal framework that outlines employment rights, obligations, and collective bargaining agreements in a country.