Employees

US buyers may not be used to CEE employment law. For example, "employment at will" arrangements are common in the US but are not standard in Europe. Union/works council engagement is also important in Europe.

The buyer's advisors should guide them through these issues, but it is useful to make a buyer aware early on of any collective bargaining arrangements (e.g., in respect of pay or redundancy), if the transaction may trigger consultation or information rights, or if any industrial action is threatened. Any required engagement should be built into the timetable.

In Slovakia, employment law is very protective of employees. There is no “at will” regime, dismissals must follow prescribed grounds, and collective rights (unions/works councils or employee representatives) trigger consultation duties. In the case of a transfer of a business or part of a business, employees automatically move to the new employer with all their existing rights and obligations intact.