On the other hand, in the case of a wealth acquisition in which the acquirer acquires assets of the company and the company has unionized employees, the buyer is bound by the BC-Arbeitsverh-ltnisgesetz law as a successor employer and is obliged to take over it. While the buyer has some ability to compose staff selectively, decisions made by the buyer regarding the employees that the buyer will employ after closing must be made in accordance with the provisions of the collective agreement. A unionized worker who receives a job offer from the purchaser of a company that employs the employee may opt for acceptance of such an offer or exercise his rights under the collective agreement against the seller. The seller and buyer should be advised on their obligations when the target company employs unionized staff. (a) a statement containing the company`s revenues and expenses for a period of 12 months that does not end more than 120 days before the agreement is signed; When checking content, use available government databases to verify the accuracy of the information provided. This research shows, for example. B, if there are pawn rights to commercial assets; If there are unpaid taxes; If there are ongoing complaints or human rights complaints; and whether certain buildings or vehicles are in the seller`s possession. The buyer in an asset purchase transaction has some flexibility to be selective about the staff that the buyer keeps. If the buyer does not make a job offer to one or more employees of the seller under substantially identical conditions, the employee is considered to have ended and the seller is subject to an irregular right of dismissal of the worker.
In some cases, in order to limit the commitments they have made, purchasers will require sellers to terminate the employment of certain employees and assume full responsibility for the severance pay to be paid to those employees. With respect to the proper documentation in the asset purchase contract, lenders should also be advised on who is responsible for termination costs related to an early and post-employment relationship and the inclusion in the contract of adequate compensation to cover future costs that may be incurred in this regard. Buying and selling a business is a complex process. This article deals with only a few considerations that buyers and sellers should look at from a work and employment perspective. While the high-level discussion of this article is supposed to raise some issues that the parties should consider, each transaction is different and the facts of each case must be taken into account in the correct handling of these problems. In summary, here are some takeaway tips for parties considering selling or buying a business: In addition, buying the assets means that you are in a contract with the company that owns the business, while buying the shares means that you are under contract with the person or persons who own the business, which requires a high degree of confidence in the seller`s information. There is also a risk that the seller, as a private company, will not have other assets if the transaction is lateral.