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Abstract

Lithuania like all other new EU member states has faced the task not only to harmonize labour law system with EC law but also to guarantee common social values – protection of the employees in the event of transfers of undertakings, businesses or parts of undertakings or businesses. During the transfer, not only the transferor and the transferee, as the present and future owners of company, but also the employees, as a part of an undertaking, have the interest in the outcome of the action. Baring in mind changing economic – social – political situation, European Community elaborates legal regulations and seeks so that employees’ rights would be protected in all situations of a transfer of an undertaking, even when a company becomes insolvent. Because of this reason there was a Council Directive No. 2001/23/EC adopted, which substantially interchanges Directives No. 77/187/EEC and No. 98/50/EC. The above mentioned Directive includes protection of workers from the groundless redundancies as well as other guarantees (such as information and consultation) that are applied in the event of transfer of an undertaking or part of it or bankruptcy. This means that in any case of transfer of undertakings, businesses or parts of undertakings or businesses, new employer must overtake all employment and collective bargaining agreements. In other words the transferee together with the transferred company receives all the workers with the same conditions that were set by the previous employer.