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Legal succession in labor relations

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Марчук Тетяна
Марчук Тетяна
Lawyer
Ukraine / Nikolaevkskaya area

i

Reading time: 10 minutes Total views: 50
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Publication date: 04.06.2024

Lawyer, graduated from the National University "Odesa Law Academy" with honors. Since 2017, I have been specializing in legal and educational and general legal issues. I am the author of legal articles, scientific publications and articles in the educational environment. Mentor of the "Veritas" legal clinic. The owner of the legal blog "Educational_law_ua" on Instagram.

Introduction
Succession in labor relations is an important aspect of labor law, which regulates the change of employer, which should not violate the rights of employees. In the conditions of a market economy, legal succession is an integral part of the processes of mergers, acquisitions, reorganization of enterprises and other changes in the ownership structure. This article will consider the legal aspects of legal succession in labor relations in Ukraine, identify the main principles and consequences for employees and employers.


Concept of legal succession
Legal succession in labor relations means that all rights and obligations of the employer under employment contracts are transferred to the new employer in the event of reorganization of the enterprise, institution or organization. The main types of reorganization include mergers, acquisitions, divisions, spin-offs and conversions. The legislation of Ukraine defines legal succession in Article 36 of the Labor Code of Ukraine (Labor Code of Ukraine), which regulates the change of the owner of an enterprise, institution, organization, as well as a change of subordination or reorganization of an enterprise.


Legislative regulation
According to the Labor Code, legal succession should not be a reason for terminating employment contracts with employees. Article 36 of the Labor Code states that in the event of a change in the owner of an enterprise, institution, or organization, the new owner must assume all rights and obligations under the employment contracts concluded by the previous owner.
In addition, Article 492 of the Economic Code of Ukraine stipulates that in case of reorganization of the enterprise, all its rights and obligations are transferred to legal successors.This means that the new employer must provide the employees with the same working conditions and guarantees that they had before the reorganization.


Rights of employees in case of legal succession
Legal succession aims to protect the rights of employees in case of a change of employer. Employees must be informed about the change of the owner of the enterprise or its reorganization in advance. According to Article 32 of the Labor Code, a change in the owner of an enterprise cannot be the basis for changing essential working conditions, except for cases when such changes are necessary and caused by changes in the organization of production and work.
Employees have the right to keep their workplace, wage level and other working conditions stipulated in the employment contract. In case of deterioration of working conditions, the employee has the right to compensation and, if necessary, to termination of the employment contract with payment of severance pay.


Duties of the new employer
The new employer, who takes over the rights and obligations of the previous owner, is obliged to comply with all the terms of the employment contracts concluded by the previous employer. This includes ensuring the maintenance of the salary level, the payment of bonuses and other rewards, compliance with the work schedule and vacations, as well as other social guarantees.
In addition, the new employer is obliged to comply with the requirements of the legislation on labor protection, to ensure proper working conditions and safety equipment. An important aspect is ensuring the continuity of employees' insurance experience, which affects their right to pension and social benefits.Liability for violation of workers' rights
In case of violation of the rights of employees during legal succession, the new employer is responsible for such violations. Employees have the right to apply to the court for the protection of their rights. Court practice shows that most often such lawsuits relate to non-payment of wages, illegal dismissal or changes in working conditions without the consent of employees.
Also, the State Labor Service of Ukraine has the authority to supervise and control compliance with labor legislation and prosecute employers who violate the rights of employees. Administrative fines and other sanctions may be applied to employers for violating the labor rights of employees.


International experience
Studying the international experience of legal succession in labor relations allows you to understand how similar issues are regulated in other countries and what can be borrowed to improve national legislation. For example, in the countries of the European Union there are Directives that regulate the protection of the rights of employees in the event of a change of employer. Council Directive 2001/23/EC provides for the preservation of employment contracts and working conditions in the event of a transfer of an enterprise.
In the US, succession in employment relationships is regulated by labor laws and agreements between employees and employers. The Worker Adjustment and Retraining Notification Act requires employers to notify workers in advance of mass layoffs or closings, giving workers the opportunity to prepare for the changes.


Conclusion


Therefore, the legal analysis of the situation and the analysis of documents indicates that legal succession in labor relations is an important mechanism for protecting the rights of employees in cases of a change in the owner of the enterprise or its reorganization. The legislation of Ukraine establishes clear rules and guarantees for employees, which ensure the preservation of their rights and working conditions. At the same time, the practical application of these norms requires constant monitoring and improvement, taking into account international experience and changes in the economic environment. That is why consulting a lawyer or a written consultation of a lawyer or the help of a lawyer online will help to understand the essence of the situation. 
In order to ensure effective succession, it is necessary that new employers comply with all legal requirements and that employees are properly informed of their rights and able to defend them in case of violations. This will contribute to the stability of labor relations and ensure social justice in society.

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