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ARTICLE · 10 MAY 2022

Top 11 Employment Provisions In M&A Agreements

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In mergers and acquisitions, both the seller and the buyer may need to include employment-related provisions in the M&A documentation.

GlobalEmployment and HR
Sophie Maes (Claeys & Engels)
Sophie Maes (Claeys & Engels)

In mergers and acquisitions, both the seller and the buyer may need to include employment-related provisions in the M&A documentation. We have gathered together the most frequent and significant employment provisions for these types of transactions.

11 Top employment provisions for M&As

1 Asset or share deal?

Employment provisions are relevant both in asset and share deals. It is key to determining upfront whether TUPE (or similar legislation) applies and its consequences. TUPE refers to transfer of (a part of) an undertaking as ‘an economic entity which retains its identity' and gives rise to various obligations on employers and protection of employees' rights (including automatic transfer rights) where there is a TUPE transfer in the EU.

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