TAKEOVERS AND ACQUISITIONS

Employment law offers employees special protection in the event of a company takeover. When a business takeover (transfer of undertaking) takes place, three consequences arise that protect employees. Firstly, all employees concerned will be transferred from the transferor to the transferee whilst retaining their terms and conditions of employment. In addition, these employees enjoy protection against dismissal and are entitled to information and consultation. If the organisational change does not constitute a transfer of undertaking, an employee does not have these special rights. That is why it is very important to determine whether or not a transfer of undertaking has taken place.