Change of Employer: Recent Cases on Job Security

Abstract

Article 87 of the Labor Law 1997 as amended in 2018 reads: “If a change occurs in the legal status of the employer, such as by succession or inheritance, sale, merger or transference of fund to form a company, all employment contracts in effect on the day of the change remain binding between the new employer and the workers of the enterprise.” This short article reveals key conceptual understandings governing the logic of this law by analyzing two recent labor arbitration cases. Job security seems indeed guaranteed as a matter of law but more needs to be done.

Keywords: change of employer; termination; job security