Supreme Court dismisses appeal, ruling that a privatized municipal budget facility succeeds to all labor rights under the Municipal Economy Act.
Legislator summary
AI generatedThe Supreme Court of Poland dismissed the cassation appeal against a lower court ruling that invalidated employment conditions for long-term bus drivers. The plaintiffs argued that the employer's claim of a collective agreement expiration was false, while the employer contended that the legal transformation did not trigger full labor law succession. The court held that the transformation of a municipal budget facility into a limited liability company constitutes a legal succession under the Municipal Economy Act, which transfers all individual and collective labor rights and obligations to the new entity.
Legislator headnote
AI generatedArt. 23 ust. 3 ustawy o gospodarce komunalnej; Art. 23¹ k.p.; Art. 2418 k.p.: A company formed by the transformation of a municipal budget facility succeeds to all rights and obligations arising from individual and collective labor law, including the collective agreement, rather than applying the general rules of the Labor Code regarding economic dismissals.