2015/1 No obligation to inform employee representatives of transfer of business entity until final agreement (FI)
The management of a company informed the employee representatives that part of the company’s business – its stone building materials department – had been sold. It did so immediately after the purchase agreement was executed, 7½ hours before the transfer of ownership. The two responsible directors were prosecuted for violation of the Finnish Act on Co-operation within Undertakings (the “Codetermination Act”). At first instance, they were fined, but on appeal the court acquitted them. The Court of Appeal found that there was no legal obligation to inform the employee representatives until after reaching final agreement on the transfer of an undertaking and that the directors had informed the representatives “in good time” as provided by the law transposing Article 7 of the Acquired Rights Directive in Finland.
Turun hovioikeus Turku (Appeal Court of Turku), 2014-12-03