Comparison Between Share Transfer, Workplace Transfer, Merger/Spin-Off Transactions In Respect Of Employment Relations

1- Share Transfer:

Share transfer in a company does not affect the company's employees (save for cases where the working conditions of the employees adversely change due to the practices of the new management, as explained in detail below). Since the company's legal personality does not change by the share transfer, all rights and obligations of the company in which the shares are being transferred, vis-à-vis employees continue as is.

Unless otherwise is agreed in the share transfer agreement (as drafted by the transferor shareholder and the transferee shareholder), the transferor shareholder will be relieved from all obligations vis-à-vis the employees, after the share transfer. The only exception is that, according to the legislation regarding collection of public receivables; the transferor of the shares and the transferee are jointly liable for the unpaid social security premiums (as well as other public receivables) in limited liability companies.