Polish court examines whether changes to employment conditions following a business transfer justify employee severance payments.
Legal Assessment Required
It cannot be determined in advance whether employees’ claims for severance pay are justified, as a decision in this matter requires a court assessment of the scope and intensity of changes in employment conditions that occurred in the specific case.
Business Transfer Legal Framework
According to Art. 231 sec. 1 k.p. in case of transfer of a business or its part to another employer, it automatically becomes a party to the existing employment relations.
This means that the new employer steps into the rights and obligations of the previous employer.
At the same time, the legislature has provided that for obligations arising from the employment relationship that arose before the transfer of the business or its part, both the previous and new employer bear joint liability.