Employer (owner) sell all company shares......

[Felt 35]

..... a new owner comes in starting a new company, but use same company name. Most of the employees already give the signal that their not happy with their coming new owner/ shareholders and the way they plan to run the company. Is this way of selling a company legal after the Thai labour laws / regulations and in relation to eventually the employees compensation rights?

Edited December 12, 2014 by Felt 35

[KittenKong]

If the shares are in the same company then it isn't a new company; it's just a change of ownership.

[Cylon]

As long as Labour laws are not broken, I would say new owners can run company any way they like, Its their money.

[recycler]

A new owner / shareholder can not change existing labor agreements without mutual agreement.

A labor agreement is is between an employee and the company as a legal entity, not with the owner or shareholders of the company.

If irregularities take place the laborers should consult the labor department, they are in general good in Thailand and defend the laborers rights.

[Felt 35]

A new owner / shareholder can not change existing labor agreements without mutual agreement.

A labor agreement is is between an employee and the company as a legal entity, not with the owner or shareholders of the company.

If irregularities take place the laborers should consult the labor department, they are in general good in Thailand and defend the laborers rights.

Thanks for the reply. This is the root cause because new owners /shareholders have already given the message they not only want to run the company different but change the regulations which staff have contracted.

I personally know I'm taking this a little too close to heart because many employees are acquaintances. And I allow myself to call it a salacious sales procedure. On a weeks notice employees first being told and believe it is the sale of a 20 year old well standing company where many staff have worked as long as 10+ years for then to get told that the company name will exist, only transfer of shares, which obviously is done to save staff compensation.

[monkeycountry]

A new owner / shareholder can not change existing labor agreements without mutual agreement.

A labor agreement is is between an employee and the company as a legal entity, not with the owner or shareholders of the company.

If irregularities take place the laborers should consult the labor department, they are in general good in Thailand and defend the laborers rights.

Thanks for the reply. This is the root cause because new owners /shareholders have already given the message they not only want to run the company different but change the regulations which staff have contracted.

I personally know I'm taking this a little too close to heart because many employees are acquaintances. And I allow myself to call it a salacious sales procedure. On a weeks notice employees first being told and believe it is the sale of a 20 year old well standing company where many staff have worked as long as 10+ years for then to get told that the company name will exist, only transfer of shares, which obviously is done to save staff compensation.

It is very simple. The staff is not employed by the owner but by the company, and as the company still exists, legally speaking nothing has changed as far as the staff is concerned. They have not been fired hence no reason to pay any compensation.

The existing employment contracts and general labour laws still apply.

The new owners may run things differently, but as long as they do so within the limits of the contracts and the law, then the staff will have to accept it or quit (without compensation).

If the company wants to change the contracts they will either have to get the accept from the employee(s), or fire the employee(s) with compensation and then rehire them under a new contract.

The above is not specific to Thailand, it goes for all companies around the world.

Edited December 13, 2014 by monkeycountry

[FritsSikkink]

A new owner / shareholder can not change existing labor agreements without mutual agreement.

A labor agreement is is between an employee and the company as a legal entity, not with the owner or shareholders of the company.

If irregularities take place the laborers should consult the labor department, they are in general good in Thailand and defend the laborers rights.

Thanks for the reply. This is the root cause because new owners /shareholders have already given the message they not only want to run the company different but change the regulations which staff have contracted.

I personally know I'm taking this a little too close to heart because many employees are acquaintances. And I allow myself to call it a salacious sales procedure. On a weeks notice employees first being told and believe it is the sale of a 20 year old well standing company where many staff have worked as long as 10+ years for then to get told that the company name will exist, only transfer of shares, which obviously is done to save staff compensation.

They will have to pay the compensation. doesn't work that way. There is not a new company, only a new owner.

You can't start a company with a name already used by another one in the same country. If it is used in an other country you could be sued and have to change the name.

Edited December 13, 2014 by FritsSikkink