Right Of Labor On Merger And Acquisition Of Enterprises

During the transitional period of our economy, domestic businesses are facingintensely competitive environment. On the one hand, companies are expanding their scalesby industrial consolidation while on the other hand; they are enhancing the operativeefficiency and raise their competitiveness in the market through intensive input of humanresources. Against this backdrop, merger and acquisition should go parallel with dismissalof the staff, which is the phase that Chinese companies have to undergo. The instability oflabor relations and even staff dismissal during merger and acquisition involves severalrights and interests of the laborer. Though specifically stipulated in the Labor Contract Lawabout Labor contract inheritance system, unreasonable and faulty rules still exist.Meticulously stipulated as the conditions of dismissal are, contradictories exist concerningtheory and practice. The concerns about company merger and acquisition of our presentlegislation and study of legal theory lay particular stress on the rights and obligations aswell as on the precaution against loss of state assets. While paying more attention to theassessment of state assets and protection of the rights and interests of the sharer, they failedto take into account protection of the laborers’ rights and interests during merger andacquisition. By analyzing and exploring the theory foundation of the specific rights andinterests of the laborers, this essay selectively analyzes the contract inheritance systemsand dismissal protection systems concerning labors’ rights and interests in corporatemerger and acquisition as well as brings up some improvement proposals.