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Transfer of employees is not always automatic

A Polish company, part of an international capital group, experienced a period of internal changes. One department that had previously carried out certain business processes was divided between different entities—two newly established Polish subsidiaries. These entities will continue to provide services to the parent company under an intragroup transition service agreement (of a long-term or short-term nature). During the preparations for this manoeuvre, it turned out that the only “asset” the client wanted to transfer to the newly established company was employees. Is this solution possible at all?

Dr Szymon Kubiak, Jarosław Karlikowski