Article 33 of the Labor Contract Law of People's Republic of China (PRC) * * * If the employer changes its name, legal representative, principal responsible person or investor, the performance of the labor contract will not be affected. Article 34 Where an employing unit is merged or divided, the original labor contract shall remain valid, and the employing unit that inherits its rights and obligations shall continue to perform it. Article 35 The employer and the employee may change the contents agreed in the labor contract through consultation. Changes to the labor contract shall be made in written form. The revised text of the labor contract shall be held by the employer and the employee respectively.
According to Article 7 of the Labor Contract Law, the labor relationship between employees and Company B has been established since they joined the company and is protected by labor laws and regulations. Now that Company A has acquired Company B, according to Article 34 of the Labor Contract Law, the employee's labor contract of Company B is still valid and should continue to be performed. At the same time, Company A should continue to perform the labor contract. Now it is illegal for company A to ask employees of company B to re-sign the labor contract, and it is legal for employees of company B to refuse to sign it. However, in this case, if Company A does not directly terminate the labor relationship with the employees of Company B, it cannot be regarded as the termination of the labor contract. Only when the labor relationship is dissolved, if it is illegally dissolved, the employee can ask Company A to continue to perform the labor contract, that is, to restore the employee's work, or he can choose to ask Company A to pay compensation according to Article 48 of the Labor Contract Law; The amount of compensation payable by Company A is the average salary of 12 months before the termination of the labor relationship multiplied by 2n (the standard for determining n is to pay one month's economic compensation for one year's work and half a month's economic compensation for less than six months).