1. The acquisition leads to the change of the subject of the original labor contract: According to Article 33 of the Labor Contract Law of People's Republic of China (PRC), if the subject of the original labor contract changes due to the acquisition, merger or transfer of the employer, the new employer shall negotiate with the original employer to properly handle the change and performance of the original labor contract.
2. Protect the legitimate rights and interests of employees: Re-signing the labor contract can ensure that the rights and interests of employees are protected. Since the organizational structure, management system, salary and treatment of the company may change after the acquisition, re-signing the labor contract can clarify the rights and obligations of employees and avoid disputes caused by unclear or ambiguous contract terms.
3. Confirm the employee's labor relations and rights: Re-signing the labor contract can confirm the employee's labor relations and rights. If the employee cannot continue to perform the labor contract with GAC Mitsubishi, the employee can choose to re-sign the labor contract with the new employer.