Speaking recently with Canadian HR Reporter, Andrew Bratt, leader of Gowling WLG’s Employment, Labour and Equalities Group, offered guidance on how employment issues play out in mergers and acquisitions — particularly in the context of asset versus share deals. The article explores critical legal considerations including employment contracts, liabilities, union obligations and due diligence for HR leaders navigating a business integration.

Bratt emphasized that understanding the difference between asset and share transactions is key to managing legal risk.

“You don't have the right to unilaterally transfer employment contracts absent consent, so it's not like the seller can say, ‘Sure, we will sell you all of our employment contracts.’ Usually, these are physical assets that are being transferred, and then the buyer will make offers of new employment to some or all the existing staff,” said Bratt.

To read the full article, click the link below (subscription required):

• Facing an M&A? Know the legal risks

About Gowling WLG's Employment, Labour and Equalities Group

Whether you're a multinational corporation, a growing mid-sized business, or a local entrepreneur, our team of employment and labour professionals provides the legal support you need to manage your workforce and resolve employment-related challenges. With deep expertise, we help you navigate complex issues, conduct workplace investigations, and protect your business as it evolves.