Study On The Inherited System Of The Labor Contract In M.&A.

During our mergers and acquisitions wave, the problem of the placement of laborer in the target enterprises is so important that is not only related to the labor rights but also is related to corporation's ownership and r the right to operate and smooth transition. Moreover, it is bearing on whether the society and the country can be stability. In the practice of mergers and acquisitions, new business owners often fire workers casually, or make workers laid-off in advance by the way of "buy-out service" , or violate the rights of laborer at random by changing laborer's station or reducing the wage. In view of this, it becomes very important that what can be the legal basis to protect laborer's rights. Generally speaking, these legal bases include the Constitution, human rights law, labor law, civil law, economic law etc., among which the inherited system of the labor contract is the most important one. China's current labor contract system has inherited many problems, and needs to use extra-territorial legislation and practical experience to carry out reconstruction, physical refining system of systems and procedures to strengthen the legal mechanisms for accountability, and ultimately safeguarding the basic rights of workers, the maintenance of a harmonious society as a whole stability. There are many problems in China's current inherited system of labor contract which needs to use foreign legislation and practical experience and carry out reconstruction. It means we should perfect systems and procedures to strengthen the legal mechanisms for accountability, to ultimately safeguard the basic rights of workers and maintain the whole society harmonious and stable.This article is divided into four parts; the main contents are as follows: Part I analysis the legal basis of the inherited system of the labor contract in M & A. It regulates the concept and natures, and after analyses of the labor right, social security right, equality right of worker, the paper comes out the legal basis the inherited system of the labor contract in M & A, among which the labor right and social security right express specifically the ideas of rights of subsistence and development in the field of labor law; equal right is fundamental to achieve the basic human rights. The inherited system of the labor contract is not only achieved formal fairness but also real fairness.Part II: comparison and inspiration in the inherited system of the labor contract in mergers and acquisitions between in China and foreign countries. By comparison and analysis of different countries and regions' related legislation and practice, concluding defects in China's system, it comes out enlightenments. The author in particular introduces the case of China's SAIC vs. Korea's Singsong Motor and the case of the United State's Carlyle Group vs. Dugong .Comparing the two cases we can clearly aware that differences in the protection of the rights of workers and the role of trade union etc. among China and other countries.Part III drafts the main content of the inherited system of the labor contract in M & A which is the most important part. The main elements of the system include two sides. On the one hand, it focus on improving the real systems including the lay-offs system, economic compensation system, labor contract changes system after inheritance ; On the other hand, it pays attention to procedure system concerning the protection of worker's rights such as a right to know ,the right to expression, the right to choose and the right to relief.The last part analyses the liability in the inherited system of the labor contract in M & A. Liability mechanism is the final protection mechanism which in addition to general liability, it owns specific characteristics. To strengthen liability of the inherited system means not only the legal responsibility of the parties to pursue but also includes accountability of Personnel who has an interest in the party concerned. In particular, the legal responsibility of trade unions and other social organizations, the executive can not be overlooked.