2013/15 Which employer to sue in the event an invalid dismissal is followed by a transfer of undertaking? (CZ)
A hotel employee was dismissed in 2001. Twelve days later the hotel was sold. The employee sued the former owner and the court declared the dismissal to have been invalid. The old owner then refused to pay salary because he was no longer the plaintiff’s employer, given that the sale of the hotel constituted a transfer of undertaking. The new owner denied that he was bound by the judgment, as he was not a party to the proceedings. The plaintiff brought an action against both the old and new owner jointly. After almost twelve years of litigation the Supreme Court denied the claim, because the plaintiff sued the wrong party in 2001. However, both the old and the new owner may be liable after all, if they failed to inform the plaintiff adequately of the transfer of undertaking.
Nejvyšší soud (Czech Supreme Court), 2013-03-26