Employment-related Consequences of Workplace Transfer

Although global M&A trends are changing constantly, share purchase and asset purchase deals are still the most preferred structures in performing M&A transactions in Turkey. No need to say that in a share purchase deal, only the shareholding structure of the target company is changed. From an employment law perspective, the identity of the employer (i.e., the target company) remains the same, which means that the employment relationship between such company and its employees is not affected at all by the deal.

On the other hand, in an asset purchase deal where the assets and businesses of a certain enterprise are transferred to a separate entity together with the employees employed therein, employment issues should be taken seriously.