2010-01-25
Council of Labor Affairs Stops Lay-offs during Financial Institutions’ M&As
The Council of Labor Affairs (CLA) recently proposed an amendment to the Labor Standards Act that would prevent the redundancy of employees during the financial institutions’ M&As. Under the proposed amendment, the financial institution surviving an M&A is required to continue all existing employments and maintain all working conditions.
Once the amendment is adopted, an M&A will no longer result in direct job losses, and financial institutions will bear more employment costs. It is estimated that approximately 6.5 million workers stand to benefit from the new amendment if adopted to law.
In addition to the above redundancy issue, the amendment also covers three more significant topics: (i) personnel dispatch, (ii) fixed-term employment and (iii) non-competition agreements. The amendment would result in the greatest change to the Labor Standards Act in the past 25 years, and the CLA is welcoming opinions from all sectors.
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