Phase
Employment Contracts Act; Law of Obligations Act
Native name
Töölepingu seadus; Võlaõigusseadus
Type
Staff information and consultation on business transfers
Added to database
08 May 2015

Article

Law of Obligations Act § 180. Employment Contracts Act § 113.


Description

A definition of business transfer can be found in paragraph 180 of the Law of Obligations Act, which states that the transferor of an enterprise may undertake to transfer the enterprise to the transferee on the basis of a contract with the transferee. An enterprise may also be transferred pursuant to law. An enterprise comprises the things, rights and obligations relating to and in the service of the management of the enterprise, including contracts relating to the enterprise.

The transferor and transferee of an enterprise shall submit, in good time but not later than one month before the transfer of the enterprise, to the employees' representative  or, in his or her absence, the employees, a notice in a format which can be reproduced in writing, containing at least the following information:

  • the planned date of transfer of the enterprise;
  • the reasons for the transfer of the enterprise;
  • the legal, economic and social consequences of the transfer of the enterprise for the employees;
  • the measures planned with regard to the employees.

If the transferor or the transferee of an enterprise intends, due to the transfer of the enterprise, to make changes affecting the situation of the employees, he or she shall consult the employees or their representative with the goal of reaching an agreement on the measures planned.

Upon consultation, the employees or their representative have the right to meet with the representatives of the transferor and transferee of the enterprise, including members of the directing body, and make proposals, in a format which can be reproduced in writing, relating to the measures planned with regard to the employees no later than within 15 days as of the submission of the notice unless a longer term is agreed on. The transferor and the transferee of the enterprise are obligated to justify disregard of the proposals.


Commentary

No information available.


Additional metadata

Cost covered by
Not available
Involved actors other than national government
Works council
Involvement (others)
None
Thresholds
Affected employees: No, applicable in all circumstances
Company size: No, applicable in all circumstances
Additional information: No, applicable in all circumstances

Sources

Citation

Eurofound (2015), Estonia: Staff information and consultation on business transfers, Restructuring legislation database, Dublin, https://apps.eurofound.europa.eu/legislationdb/staff-information-and-consultation-on-business-transfers/estonia

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