Reorganization of the employer. Impacts on the employment contracts

AuthorRaluca Dimitriu
Professor Raluca DIMITRIU
The pa per dea ls with identifying the impacts of the different methods of reorganization of the hiring unit on
the employment contrac ts. It takes into account the methods of reorganization r egulated in the new Civil Code, as
well as the judicial reorganization or the tr ansfer of the undertaking, in an attempt of or ganizing these important
circumstances in the life of the enterpr ise, consider ing their impacts on the working relations. Taking into account
the var iety of the meanings and circumstances in which the term reorganization is used, there is carried out a
classification of the r eorganization situations, whereas the criter ion is the i mpact of these cir cumstances on the
employment contr acts. It presents the hypotheses in which dismissal for reasons which are independent from the
employees can be decided, in a r estricted way, the cases in which such redundancies can be decided in an
unrestricted way, as well as the cases in which the reorganization cannot be at all accompanied by measures of
making employees redundant.
Keywords: employment contracts, reorga nization, employees, r edundancy
JEL Classification: K31
1. The Concept of „Reorganization”
Following the fact that an employment contract is carried out along a (sometimes long)
timeframe, in the circumstances of the market economy, which require quick changes of the
varieties of kinds of organization of economic agents, there is a high probability that the hiring
entity suffers changes, transformations or reorganizations. Such changes (of an even bigger
amplitude during the economic crisis) are in principle dedicated to increasing the efficiency of
the economic activity and have inevitable impacts on the employment contracts, as well, with
direct effects on the human resources. However, the employer will not be able to change, cease or
modify these contracts automatically and unilaterally; firstly, he will have to identify the category
of decisions that are allowed by the labour law, as opposed to those which are interdicted.
We would start be mentioning that the term „reorganization” has different meanings in the
civil law, as opposed to the labour law. In this way, the Civil Law
uses this term in cases in
which the performed changes have an impact on the juridical personality of the unit, with effects
which are either extinctive or constitutive, or (like in cases of transformation) effecting a change
in the category of legal entities to which this unit belongs. It is of no significance if the
employment contracts are maintained or if the jobs are cut. On the contrary, the hypotheses of
changing the unit’s structure, even if with a major impact on the employment contract, according
to the C ivil law, are not cases of „reorganization”, as long as the juridical personality of the unit
stays unchanged.
The Labour Code makes no specific references to the concept of reorganization, but the
judicial practice and the doctrine are of the same opinion in how they use the term in cases in
which, for example, there is mentioned a redundancy based on reasons which are independent
from the employee, following a change in the organizational structure of the unit. In this case we
Raluca Dimitriu, Law Department of the Bucharest University of Economic Studies,
Law Nr.287 of July 17 2009 related to the Civil Code, published in the Official Gazette of Romania, Part I, No. 505 of July 15

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