Company Succession and Subrogation Effects

A change in ownership of a company, work center, or independent production unit. It does not affect labor relationships but assigns new responsibilities to the new employer.

An independent unit (like a factory or shop) owned by a company, but able to operate separately.

Transfer of ownership occurring during the lifetime of the previous owner, such as through leasing, sale, mergers, or takeovers.

Transfer of ownership due to the death of the previous owner, with ownership passing to legal heirs.

The principle stating that the new employer assumes all rights and obligations of the previous employer in labor relationships.

When a company changes ownership, the employment relationship continues, and the new employer inherits the former employer's rights and obligations.

The mandates of worker representatives (e.g., union representatives) remain in effect after a company's transfer of ownership.

The collective bargaining agreement (CBA) in place before the transfer of ownership usually continues, unless there is change agreed by all parties.

Information about the identity, purpose, duration, location, and number of workers involved in a contract.

The contractor and subcontractor must provide information to workers, the principal company, and worker representatives.

Information provided to the worker before they start providing services, includes details about the contract, their role, and safety.

Main company's identity needs to be communicated to the principal company.

Information about the contract (including the main contractor's identity) must be provided to workers' representatives.

When all companies involved in a project must work together to ensure occupational risk prevention.

The company owning the work center must assess potential risks, inform other companies about safety measures, and enforce compliance.

The type of collective agreement that always applies to contractor companies, ensuring labor rights are protected.

A legal situation where the worker is temporarily released from their obligation to work and their employer from the obligation to pay, while preserving the employment relationship.

A period of time during which the employment relationship is temporarily suspended.

Occurs when a company's ownership or control is transferred to another company, with the transferor retaining responsibility for labor obligations incurred before the succession for a period of 3 years.

During a company succession, workers' representatives (or directly to workers if none exist) must be informed about the date, legal, economic, and social consequences for them, including measures taken to mitigate the impact.

A period of discussion with workers' representatives (or workers directly) is required when a company succession triggers labor adjustments.

Both the old and new employers are jointly liable for labor obligations arising after a company succession when the transfer was fraudulent or criminal, such as unpaid social security contributions.

A main company delegates certain services related to its own business activity to another company (contractor) due to strategic, organizational, or economic reasons.

The purpose of contracting and subcontracting (outsourcing) is to potentially reduce costs, but modern labor reforms aim to improve conditions and mitigate potential abuses.

Contracting and subcontracting are legal practices in alignment with the freedom of enterprise, as outlined in the Constitution.

Both the original employer and the contractor (subcontractor) are responsible for ensuring compliance with labor laws related to working conditions and employee rights.

Collective bargaining agreements (CBAs) remain in effect during a company succession until the CBA terminates naturally or a new one is adopted.

After a company succession, the transferee company must comply with the collective bargaining agreement of the new employer.

A contract where a main company hires another company (subcontractor) to perform the same services the main company was initially hired to do. There is no transfer of workers, only the work itself.

Involves multiple companies (principal and auxiliar companies). The auxiliar companies provide services or tasks for the principal company's core business activity.

The principal company is responsible for both the contractor and subcontractor's salary and social security obligations during the contract term.

The principal company's liability extends beyond the contract term: 1 year for salary obligations and 3 years for social security obligations.

The principal company is NOT jointly liable for salary and social security obligations in specific cases like home renovations or when the principal company's activity is NOT its core business.

Social Security obligations are NOT shared by the principal company when there is a negative certification or no response from the Social Security General Treasury within 30 days.

The main company is accountable during the contract term for any social security debts incurred by the auxiliar companies.

The principal company's liability for debts is determined by the social security regulations and relevant legal frameworks.

The main company's liability for social security obligations related to the subcontractors is governed by the Social Security General Treasury's regulations.