Corporate reorganizations and restructuring
Corporate or business reorganization and restructuring operations consist of mergers, divisions, segregations or global assignments of assets and liabilities that have a special tax regime as long as they take place for a valid and legal reason. Such operations may pursue different objectives such as protection of assets and diversification of risks, saving of administrative costs, or optimization of human resources management, among others.
In the event that a company buys or absorbs another company, it will be obliged to comply with a series of obligations regarding its employees. The rights of these workers are contained in the “Estatuto de los Trabajadores”, specifically in Article 44, which guarantees the employment situation of the workers of the company that has been acquired.
In the case of mergers between two companies, the principle of continuity prevails. This means that the employee’s contract remains unchanged even if the employer changes.
Other aspects are considered that may occur at this time in which permanent workers are differentiated, who may be offered options such as geographical mobility or changes in working conditions, and temporary workers who may terminate the contract earlier by means of some type of incentive or wait for the expiration of the contract. In any case, negotiations are necessary to guarantee the rights of workers in the face of the new situation that may arise.
At Letslaw we assist our clients in corporate and business reorganizations and restructuring with the aim of allowing greater protection of employers’ assets. To this end, we have experience in designing strategies to achieve the client’s objectives using legal measures to obtain benefits and cost savings in these operations.
We carry out these corporate or business restructurings with a labour approach, thus managing to put the focus on this specific part of the restructuring operation.
Among the services we offer from Letslaw are
- Transfer and succession of companies
- Company agreements and collective bargaining agreements
- Analysis of work processes
- Outsourcing and subcontracting of activities
- Labour and social security audit
- Labour Due Diligence