Picture a situation where a company divests a part of its business to create a new company. Employees are transferred to the spin-off company too. Based on Article 75 of the Employment Relationship Act (ZDR-1), the provisions on the transfer of an undertaking (change of employer) then apply. The article governs the joint and several liability of both the transferor and transferee company; however, it limits liability solely to the claims of employees who were actually transferred.
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