European Restructuring Monitor (ERM)
Eurofound's ERM database on restructuring-related legal regulations provides information on regulations in the Member States of the European Union and Norway which are explicitly or implicitly linked to anticipating and managing change.
Articles 36-41, 265 and 282
In case of a transfer of an economic undertaking (defined as an organised group of material or other resources), the transferor’s rights and obligations arising from the employment relationships existing on the date of the transfer are transferred to the receiving employer (transferee).
The transferor and the transferee have to inform, within 15 days prior to the effective date of the transfer, the works council on:
If no works council exists at the transferor, of if no workers' representatives have been elected, it is the employee that has to be notified of the above, as well as any measures envisaged that might affect them (Article 265). As of January 2023, under Article 38 (1), the new employer must also provide notification in writing to the employee of the transfer and the identity of the new employer as well as any change in the conditions of work, on the day of the transfer. The transferor and the transferee must enter into negotiations with the works council, with the goal of reaching an agreement. Negotiations should cover any measures in relation to employees, the principles of these measures, the ways and means of avoiding or mitigating detrimental implications of the transfer.
Following the transfer, the transferee must continue to observe the terms and conditions of the collective agreement applicable to the transferor on the date of the transfer for at least a year. This period can only be shorter in case of the expiry of the collective agreement or the entry into force of another collective agreement. (Article 282) The transferor and the transferee are jointly and severally liable in respect of obligations towards employees which arose before the date of the transfer if an employee submits his/her claim within one year from the date of the transfer.
In most aspects of working life and conditions of the work contract, a change of employers does not affect the employee. However, in areas where employers have a right to unilaterally change working conditions, such as for example daily schedules and bonuses, the change can have almost immediate effect.The employee has a right to terminate the work relationship if such a change would have a disproportionately adverse effect on their working conditions, but such a termination must be given adequate justification.
Eurofound (2015), Hungary: Staff information and consultation on business transfers, Restructuring legislation database, Dublin, https://apps.eurofound.europa.eu/legislationdb/staff-information-and-consultation-on-business-transfers/hungary
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