Priyanka Gupta of Majmudar & Co outlines the key employment concerns that companies could face following a merger
A change in the ownership or control of a company can have implications for its employees. However, employment related issues are often not adequately dealt with by either the transferor or the transferee.
This can create difficulties for the transferee – especially when the merger or acquisition is cross-border in nature.
The transfer of control could lead to new policies being implemented that in turn could lead to changes in the terms of employment. This could bring to light several issues with the original employment contract that could create problems for the new owner of the company.
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Priyanka Gupta is an associate at the Mumbai office of Majmudar & Co, International Lawyers.
