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Research on the Protection of Rights to Hearing of Employees from the Target Enterprises in Mergers and Acquisitions

Author: WuChao
Tutor: ChenYeHong
School: Central China Normal University
Course: Economic Law
Keywords: Mergers and Acquisitions the Target Enterprises Legal Protection Rights to Hearing of Employees
CLC: D922.5
Type: Master's thesis
Year: 2009
Downloads: 82
Quote: 1
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Abstract

Mergers and Acquisitions is an increasingly important form of business investment. Trough M & A enterprises can reduce investment costs and can be able to dominate markets quickly with the help of the target enterprises,reducing investment risks, enhancing investment returns and achieving survival of the fittest.However,national interests,corporate interests and employee interests have been being harmed,especially the rights to hearing of employees from the target enterprises due to lagged legislation in M & A in China.The harming to rights to hearing of employees from the target enterprises inevitably affects employment rights of employees and furtherly influences rights to survival and development of themselves and their family,and even gives negative impacts on social stability and harmony.Therefore,we must attach great importance to the protection of rights to hearing of employees from the target enterprises. This article is divided into four parts.PartⅠ:It mainly carries out an overview of hearing and rights to hearing of workers.Based on the age—old "Principle of Natural Justice" from Britain,it explores origins of hearing.The hearing began in the application of justice,and then gradually migrated to areas of legislative and executive;it also explores values of hearing system as a mechanism to ensure scientific legislation and policy,to protect rights of natural persons,legal persons and other organizations and to balance rights of subjects from different social fields,etc.,it defines the rights to hearing of workers including right to information,right to statement,right to cross—examination,right to defense,right to evade requirements,etc..PartⅡ:From the perspective of theory of law,it mainly discusses the protection of rights to hearing of employees from the target enterprises.First of all,based on survival rights and development rights of a person,it analyzes that to protect rights to hearing of employees from the target enterprise is to protect their labor rights.As a result,through protecting their labor rights,survival rights and development rights of them will be safe. Second,based on Marxist theory of marriage and family,it explores that to protect labor right,labor safety right,etc.is equal to guarantee the safety of supplying for the whole family and the stability of marriage.Third,based on the theory of social responsibility of enterprises and contract law,it argues that enterprises have to take the responsibility of soliciting the opinions from employees when the decisions that are made by enterprises refer to the inner rights and labor rights of employees from the target enterprises,but it should be noted that although enterprises take the social responsibility,yet they have gained variety of favorable environment of production and operation,such as social stability,etc..PartⅢ:To make Hearing Law,Mergers and Acquisitions Law and to improve relevant Law is to protect rights to hearing of employees from the target enterprises.It includes four points:1) To make Hearing Law,as the Basic Law to regulate hearing behaviors,is to systematically arrange the related system of hearing,such as open,equitable and just hearing systems,to advise and inform systems,to represent and to defend themselves and to cross—examine systems etc..In Hearing Law,to make some legal provisions of protecting rights to hearing of employees to determine the scopes of employees hearing,the participants of employees hearing,etc.provides the basis to legal protection of rights to hearing of employees.2) To enhance relevant systems of worker representative congress in China,in enterprises to some extent,the employee representative congress is authorized to have the involvement of co—decision in arrangement of working hours,wages and rewards,labor protection,professional training, etc.,and to have the involvement of recommendation or consultation in hiring or dismissing employees,rules and regulations,labor process,etc.with the enterprises so as to really achieve the "article 6" from Trade Union Law.3) To make Mergers and Acquisitions Law is to set a single chapter for rights protection of the target enterprises. According to Rawls’s "procedural justice" theory,only procedural justice is protected safely so as to maximize the achievement of substantive justice.Only to guarantee rights to hearing of employees from the target enterprises is to maximize the achievement of substantive rights of employees from the target enterprises.Therefore,the first section for protecting rights to hearing of employees from the target enterprises singly is set to establish the protection systems of hearing of employees from the target enterprises to regulate the scopes of hearing,the hearing host and the employee representatives,etc..4) After the labor contract has been dismissed,the employees from the target enterprises will enter into the field of social security if they can not have a new employment.Social security has been become their "Safety Nets for Life",therefore enhancing a sound legal system of social security is significant for the protection of rights to hearing of employees from the target enterprises.PartⅣ:It discusses the behaviors in violation of rights to hearing of employees from the target enterprises and the relief of harming rights to hearing of them.The behaviors include depriving of rights to hearing,setting hearing things arbitrarily, breaking legal regulations for hearing procedure and standards of choice for hearing host and hearing employee representatives,etc..The employee representative congress in accordance with the involvement of co—decision or the involvement of recommendation and consultation,can not deliberate,pass or determine the things for harming rights to hearing so as to protect rights to hearing of employees from the target enterprises to some extent.However,in order to ensure the authority and enforcement of law,the employee representative congress or the employees from the target enterprises can apply to the relevant court for confirming the hearing invalid.The decisions made by the enterprises also are null and void by a court decision.

Research on the Protection of Rights to Hearing of Employees from the Target Enterprises in Mergers and Acquisitions

Abstract

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