When planning to buy or sell a business, there are many legal issues that need to be considered all at once. In corporate negotiations and transactions, with teams working to tight deadlines on many parallel workstreams, often across multiple jurisdictions, employment law issues can, at times, take a back seat. But they are crucial and can have a major impact on value and timing. What happens to its employees when a business is transferred and when and how should they be informed and consulted? How to manage pay and pensions? What special arrangements need to be put in place regarding key personnel?
On this page, Ius Laboris lawyers from around the world have pinpointed some of the most important employment-related issues that need to be considered in corporate transactions. It is not intended to be exhaustive: each deal will present different challenges and employment issues will require case-by-case consideration and specialist advice. But we hope it provides a useful first port of call for HR and legal teams considering how employment fits in with mergers and acquisition (M&A) activities.
Employment issues on business transfers: a Ius Laboris survey
When a business, or part of a business, is transferred to a new owner, its employees have rights and the buyer and seller of the business have duties towards them. These differ across the world. In this survey, Ius Laboris lawyers briefly explain how five key employment issues that arise on a business transfer are handled in their countries.
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