Transfer of personnel in a company takeover: What are you taking over?
In a company acquisition involving employees, it's important to know what you can and cannot change in the employment relationship. In principle, the employees will retain the same terms and conditions of employment. There may be no layoffs, and employment contracts must remain unchanged. Employees retain their rights regarding salary, position, working hours, and location. Non-compete clauses also remain in effect. At Match Plan we have extensive experience in guiding business acquisitions and -to sell and we are ready to support you every step of this process.
Why a business takeover with staff?
1. Continuity for staff
The transfer of personnel ensures continuity within the organization. Employees retain their employment benefits and are assured of their rights. This contributes to the stability of your company, allowing you to focus on the integration and growth of the acquired company.
2. Taking over existing employment conditions
When you take over personnel, you're not just taking over the employees themselves, but also the associated employment conditions, such as the collective labor agreement and pension plan. This ensures that legal complications don't arise and that employees feel supported in the transition to the new owner.
3. Risks of staff resistance
If an employee opposes the acquisition, it can lead to conflict or the loss of important knowledge within the company. It is therefore crucial to handle the acquisition carefully and communicate effectively with employees to ensure their cooperation.
What do you take over from personnel?
In a company acquisition involving personnel, you take over both the employees and their rights and regulations. In addition to employment contracts, you must also consider the applicable collective labor agreement (CLA) and pension scheme.
collective labor agreement
: If your previous employer has a collective labor agreement (CLA), it will remain in effect after the transfer. This means you will continue to follow the existing employment terms and conditions unless the CLA expires and no new CLA takes effect.
Pension plan
: After the takeover, you can choose to transfer the employees to your own pension plan. If you don't have your own plan, you must continue with your previous employer's plan. It's important to check that all contributions have been paid, otherwise you could be held liable by the pension provider.
Step-by-step plan for a successful transfer of personnel
1. Evaluate the current working conditions
Before taking on staff, it's important to review the employment contracts, collective bargaining agreements, and pension plans. Make sure you fully understand all the staff's rights and obligations.
2. Prepare a communications plan
Careful communication is crucial. Inform employees about the acquisition in a timely manner and explain what it means for them. Be transparent and answer questions to avoid uncertainty.
3. Examine the financial obligations
Check for any outstanding pension contributions or other financial obligations with your previous employer. This prevents surprises after the takeover.
4. Determine which employees you retain
In some cases, employees choose not to participate in the takeover. Ensure you manage this process properly and that all legal documents, such as termination letters, are in order.
5. Consult the works council and trade unions
For larger companies, it's mandatory to involve the works council and trade unions in the acquisition. Ensure you obtain their approval and cooperation to avoid legal complications.
6. Implement the acquisition and ensure integration
Once the acquisition is complete, begin integrating your staff. Ensure a smooth transition by addressing work processes, culture, and working conditions.
What to do if staff resists?
In a company takeover, employees are not obligated to participate. If an employee decides not to agree to the takeover, this must be confirmed in writing. In this written statement, the employee must clearly state that they are terminating their contract, meaning they are no longer entitled to unemployment benefits after the termination of their employment. This process must be carried out carefully to avoid legal complications.
The importance of retaining specific knowledge
: It's crucial to retain staff with specialized expertise. Employees with key business knowledge or a client portfolio can be invaluable to the company's future. Therefore, the way you present the acquisition to your staff is crucial. Transparent and well-prepared communication can make the difference between retaining these employees and losing valuable knowledge.
Good preparation is key
: Before taking on any employees, thorough preparation is essential. Conducting a risk assessment is a crucial step. This involves carefully reviewing employment conditions, sick leave, bonuses, and other arrangements. This ensures you avoid any surprises during the takeover and are well-prepared for any complications.
Involvement of the works council and trade unions
: For larger companies, it's mandatory to involve the works council and trade unions in the process. This is not only a legal requirement but also crucial for a smooth takeover. By involving these stakeholders early on, you can address potential objections early and ensure a smooth transition for both employees and the company.
Ensuring a smooth transition
: Careful preparation and communication ensure a smooth takeover and that employees feel supported during this transition. It's important that both employees and the company have confidence in the process, so that unnecessary uncertainty doesn't arise. This increases the likelihood of a successful takeover and helps maintain a stable working relationship.
Tips for a successful transfer of personnel
Taking over staff during a business acquisition can be complex, but with the right approach, you can ensure a smooth transition. Here are some key tips for a successful process:
Communicate clearly
: Make sure you inform your employees about the acquisition and what it means for them after the final negotiations. This prevents uncertainty and ambiguity, which can lead to resistance or even the loss of valuable employees. A good communications plan helps build trust and reassure employees.
Involve the works council and trade unions
: For larger companies, it's mandatory to involve the works council and trade unions in the process. This ensures compliance with legal obligations and helps address potential objections early on. Involving these parties promotes a smooth acquisition process and helps build support.
Make a detailed risk assessment
: Conduct a thorough risk assessment of employment conditions, absenteeism, bonuses, and other regulations. This will help you avoid surprises and ensure you're fully prepared for the legal and financial obligations associated with transferring personnel.
Ensure smooth integration
: A successful employee transfer goes beyond simply maintaining the right employment conditions. It's important to develop a plan for staff integration so they can quickly adapt to the new organizational culture and working methods. This increases the likelihood of a smooth transition and fosters long-term collaboration.
Why choose Match Plan?
With over 30 years of experience guiding business acquisitions, we understand the complexities and opportunities associated with this process. Our experts are ready to support you with:
- Determining the most suitable financing structure for your takeover.
- Drawing up a sound financing memorandum that convinces financiers.
- Approaching the right financiers and negotiating favourable terms.
- Ensuring compliance with all legal and tax obligations.
A business acquisition is more than just a financial transaction; it's a strategic step in the future of your company. Contact us and discover how we can help you achieve a successful business acquisition.
Contact
Please fill in your contact details and we will contact you as soon as possible.
"""*"" indicates required fields
Telephone
Would you prefer to contact us directly by telephone?
Then you can call +31 85 013 00 75.
- Over 30 years of experience
- 100% independent advice
- 1000+ entrepreneurs guided
Related blogs
No obligation Advice
Over 30 years of experience
Please feel free to contact us
advisors for an introduction.
✔ Business sale
✔ Company takeover
✔ Acquisition financing
✔ Independent assessment