Employment issues in M&A transactions in Montenegro

N/A.

• the following in draft form:
  Information for the attention of the employees regarding the change of shareholder.

• the employees about the change of shareholder at least 5 days before the transfer of shares.
  The seller must inform the purchaser about any rights and obligations arising out of any collective agreements and employment agreements that have been transferred.

N/A.

• sections 2 and 3.
• The seller, purchaser and target are to implement measures to alleviate the social and economic consequences for the employees at least 15 days before the transfer of shares.
• The purchaser, i.e. the target, is obliged to implement the collective bargaining agreement of the target company for at least one year from the day of the change of majority shareholder, unless the following takes place before this period expires:

1. the term for which the collective bargaining agreement has been concluded expires;
2. a new collective bargaining agreement is concluded.

N/A.

N/A.

N/A.

N/A.

N/A.

N/A.

N/A.

N/A.

N/A.

N/A.

N/A.

N/A.

N/A.

N/A.

N/A.

• a representative trade union exists at the target company.

• information for the attention of employees regarding the transfer of employment agreements;
• information for the attention of the representative trade union/employees regarding:
  1. the date or proposed date of the change of employer;
  2. the reasons for the change of employer;
  3. the legal, economic and social consequences of the change of employer for the employees, and any measures being planned to alleviate such consequences.

The present employer must inform the future employer of any rights and obligations arising out of any collective bargaining agreements and employment agreements that are being transferred.
The present employer must inform the employees of the transfer of employment agreements.
The present and future employer must notify the representative trade union/employees of the following:

• the date or proposed date of the change of employer;
• the reasons for the change of employer;
• the legal, economic and social consequences of the change of employer for the employees, and any measures being planned to alleviate such consequences.

No consultation requirement.

The present and future employer must implement measures to alleviate the social and economic consequences for the employees in cooperation with the representative trade union. The future employer is obliged to conclude the employment agreement with the employee within five days from the takeover. The employment agreement with the purchaser cannot contain a lesser scope of rights than the previous agreement with the predecessor, as long as the collective agreement of the previous employer is in force. The future employer is obliged to implement the collective bargaining agreement of the present employer for at least one year from the day the employer is changed, unless the following occurs before this period expires:

• the term for which the collective bargaining agreement has been concluded expires;
• a new collective bargaining agreement is concluded.