The bill on cross-border mergers was permanently ratified, on June 19, by the National Assembly. It transposes Directive 2005/56/EC on cross-border mergers, which notably contains provisions concerning the protection of employee participation rights before the merger. (Ref. 080531)
Pursuant to the Directive, the law prevents
cross-border mergers from decreasing employees’ participation rights as
recognized in one or several of the companies concerned.
Compulsory
negotiation. To that end, the law sets an obligation to
establish a Special Negotiating Body
(SNG) as soon as possible after the merger is made public when: 1/ at least one
of the companies involved in the merger applies rules on participation and employs,
for six months before the merger is made public, at least 500 people; 2/ or, if
the company born from the cross-border merger doesn’t guarantee at least
the same level of employee participation.
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