The Research On The Inheritance Of Labor Contract In Mergers And Acquisitions

American famous economist, Nobel economics laureate George Stigler oncesaid that US companies have been growing up somehow by mergers and acquisitionsin some degree, nearly no companies by internal expansion. Most people survive byselling labor force, which is closely linked to destiny. Therefore, it is very importantto protect the benefits of laborers. With the trend of internationalization,liberalization and globalization, companies increase productivity and enhancecompetitiveness by improving the technology and reduce the production cost byaltering its organizational structure. Mergers and acquisitions is becoming the trendin improving economic efficiency and boosting the economic development. However,as vulnerable members of our society, labor workers are easily ignored by theprogress of mergers and acquisitions, whose working order is broke. Suddenly, theyare sucked into a bad situation. Their legal rights, including inherit labor contract,are severely infringed. In the progress of mergers and acquisitions, Laborers havenot shared the profit gained by economic growth, so they are unsatisfied with thereality. What is more, laborers are incapable of handling the infringement upon them,so they are suffering from the burden. As insecurity is aggravated, laborers do nottrust society. The growing gap between the wealthy and poor finally leads to riot anddestruction of the social order. If laborer workers’ legal right can not be settled, notonly employers but also employees will be victims.This paper is aiming at actualizing the legislative purpose to perfect the systemof inheritance of labor contract in the background of mergers and acquisitions.Firstly, the paper sketched the system of inheritance of labor contract, explained theconcept of inheritance of labor contract, mergers and acquisitions and other terms,expounded the characters of inheritance of labor contract in the progress of mergersand acquisitions and microscopically pointed out the pattern of infringement andimpact on laborers. Secondly, it introduced the related laws and regulations aboutmergers and acquisitions, the dispute of application and perfection on part of provisions. Last but not least, the paper explored the perfection on inheritance oflabor contract in mergers and acquisitions.