CMS Employment Practice Area Group is pleased to share with you the 2019 edition of the CMS Guide to Employment Issues in M&A Transactions.
While mergers and acquisitions (M&A) tend to be led by corporate or tax lawyers, dealing effectively with the employment law issues can significantly improve the chances of a successful transfer. The importance of employment law and the types of difficulties that arise depend on the nature of the individual transaction, but a failure to adequately examine the existing rights and obligations between the target company and its staff can result in expensive employment claims, administrative fines and other liabilities.
The employment lawyers on the team must carry out due diligence to identify any potential problems with collective bargaining agreements, misclassification of employees (e.g. as freelance), pension schemes, employee benefits, accrued and as-yet unpaid time off, existing legal claims and potential legal claims. They can also help design layoff and retention strategies, ensure regulatory compliance, harmonise employment practices in the new combined entity and deal with cross-border clashes in employment culture.
This CMS Guide to Employment Issues in M&A Transactions provides a comprehensive overview of the employment law requirements to be taken into account when dealing with an M&A transaction in any one of 31 jurisdictions. Information about cross-border mergers can be found in a separate CMS guide.
This guide offers a valuable resource to help with the planning necessary to manage risk and avoid major problems during every stage of the integration process. Should you need more detailed advice, please reach out to your regular CMS contact or send an e-mail to employment@cmslegal.com. We have a proven track record in understanding our clients’ needs, and in delivering a professional and seamless service. We will be happy to provide further advice.
The CMS Employment Team
