When an owner sells his company, many questions can arise for employees. How will your working conditions be affected? Are your rights protected? How can you prepare for this change? This article explains everything you need to know to understand your rights and adapt to this new situation. We would like to thank Vincent Leclerc of the Entreprise SNPC website, whom we consulted for this article.
The sale of the company: what it means for employees
Transfer of employment contracts
When your employer sells his business, your employment contracts are normally transferred to the new buyer. You do not lose your job, and your working conditions, in principle, remain identical. The new employer therefore takes over the rights and obligations associated with your existing contracts. Your acquired benefits, such as seniority and paid leave, must be respected. In other words, you continue to work under the same conditions as before, unless the old and new employers agree otherwise.
Informing and consulting employee representatives
Employee representatives, such as the social and economic committee (CSE), must be informed of the sale of the company. The latter must be informed and consulted on the consequences of the sale. As an employee, you need to be aware of these steps, as they may affect your working conditions. You have the right to be informed about the consequences of the sale, including job stability and potential changes in your day-to-day working life.
Your rights when the company is transferred
The right to object to the transfer of your employment contract
If you do not agree with the transfer of your contract to the new employer, you have the right to object. This right must be exercised within one month of being informed of the sale. If you decide to exercise this right, you can ask for your contract to be terminated, in which case you may be entitled to severance pay. We therefore advise you to think carefully before making a decision, as this breach may have consequences for your compensation and unemployment rights.
Respecting acquired rights
The new employer must respect all rights acquired by employees prior to the sale. This includes seniority, benefits and any collective agreements. You don’t have to worry about losing these rights as a result of the transfer. For example, if you have untaken paid leave or have accumulated special benefits, these must be maintained, even after the sale.
Modification of the employment contract
Although your terms and conditions of employment will in principle be maintained, it is possible that certain modifications may be envisaged by the new owner. In this case, the new employer must comply with the legal rules governing substantial changes to the employment contract. If the change is unilateral and does not suit you, you have the right to refuse and negotiate compensation or even termination of the contract.
The sales process and its social impact
Impact on collective agreements
The sale of a company can lead to a revision of existing collective agreements. This applies in particular to collective agreements, branch agreements and company agreements. It is therefore possible that certain changes will affect your working conditions, but these will have to be negotiated. We recommend that you keep a close eye on these negotiations, so as to be informed of any new rules that may come into force in your company.
Redundancy possibilities
In some cases, the sale may result in dismissal. However, if you are made redundant as a result of the sale of your company, you may be entitled to severance pay, provided that the sale is not part of a safeguard or receivership procedure. In these situations, your rights may be affected, but you are still entitled to legal protection.
| Right | Description |
|---|---|
| Transfer of employment contracts | The employment contract is transferred to the new employer without any change in conditions. |
| Right to object | Right to object to the transfer within one month, with the possibility of terminating the contract. |
| Respect for acquired rights | Acquired rights (seniority, paid leave, benefits) must be maintained. |
| Contract modification | Any modification to the contract must be negotiated with the employee, and not imposed. |
| Severance pay | In the event of dismissal due to the sale, compensation is payable except in the event of receivership. |
How should I react to the sale of my business?
Preparing for changes in working conditions
It’s important to keep a close eye on announcements concerning the sale of your business, and to take note of the information circulated by your employer. Employees should also pay close attention to messages from their employee representatives, who play a key role in safeguarding your rights. If you have any concerns or questions regarding the evolution of your situation, don’t hesitate to consult a lawyer specialized in employment law.
Take part in information meetings
When your company is being sold, it’s important to take part in information meetings organized by management or employee representatives. This will enable you to better understand the upcoming changes, ask questions and defend your interests. These meetings can be an opportunity for you to make your voice heard and prepare for the transition in the best possible way.
