Cross-border mergers of incorporated companies in the European Union: aspects of labour law

Cross-border mergers of incorporated companies do not only interest Company Law but also comprise important aspects of Labour & Employment Law. If the European Directive dated 26 October 2005 facilitates these transactions, the reference made to national legislation raises many difficulties in the absence of harmonized treatment of the social consequences of transactions. The questions raised by the implementation of workers' participation in management bodies of the company resulting from the transaction are an illustration. Other issues include the fate of employees' representative bodies of existing staff within the merging companies, collective norms and employment contracts, remain unresolved. To these and others, this study attempts to provide answers. The consequences of the cross-border transactions require that answers be given to the unresolved issues. Keywords: Cross-border mergers - incorporated companies - European law - European Directive No. 2005/56/EC - workers' participation- SNB (special negotiating body) - Employee representative body of the merged company - transfer of employment contracts - employees' representative bodies - collective norms - collective relations - individual relations.