Newsletter
RIGHTS OF EMPLOYEES IN COMPANY MERGERS
In an interpretation of Article 20 of the Labor Standards Law (LSL) dated 1 April 2000, the Council of Labor Affairs (CLA) stated that when a business entity is restructured or sold, the new employer has a duty to inform the workforce of the content of future conditions of employment, or to consult with them for an agreement. Where employees for whom continued employment has been agreed refuse to enter into a new contract because of disadvantageous changes in the con-ditions of employment, or decline to remain in employment for personal reasons, they are enti-tled to severance pay from the original employer under Article 11, Paragraph 1, Subparagraph 1 of the LSL.