The importance of mergers and acquisitions in the healthcare industry cannot be underrated even in these uncertain COVID-19 times. The agreements and transactions facilitate expansion or provide cushioning against financial losses. The healthcare sector employees are most affected by these transactions, leading to job losses, change in employment terms, and job insecurity. Some of the considerations regarding employment law when conducting mergers and acquisitions include the following.
Employment Terms and Agreements
Reviewing the terms of employment during mergers and acquisitions is critical to the buyers. Terms such as reasons for termination, equity interests, and non-compete agreements must be clear. The clarification and understanding of these terms will help safeguard the buyers’ interests effectively tackle employment issues.
Compliance to Immigration Regulations
Evaluating the employees’ records is essential as some may have immigration status and compliance is necessary. The buyers should ensure that any terms regarding the immigration status employees are relevant, transferable, and applicable to their terms. Involving legal help will help verify the transferability of some of the processes.
During the merger and acquisition negotiations, the buyers should be well aware of the employees’ ties and labor relations. If employment terms and contracts are to be affected, they should involve participation from the labor unions before effecting any changes. They should also be keen to evaluate any strained agreements and impending issues with the unions and settle them.
Benefits and Compensation
Individuals and organizations in the acquisition should confirm the honoring of any regulations and agreements on benefits and compensations. In case of any layoffs or retirements, the buyers should effectively compensate employees in compliance with the employment terms. The financial reports should show effected changes indicate any pending settlements.
Anti-Discrimination and Anti-Harassment Policies
Reports of harassment and discrimination occur in several instances within the healthcare industry. The mergers and acquisition parties must ensure that proper training and awareness campaigns are available on anti-harassment and anti-discrimination laws. They should provide adequate documentation on lawsuits and avail employee handbooks on the same while actively enforcing compliance.
The workplace is increasingly becoming a significant issue, especially with the onset of COVID-19. Buyers and partners in mergers and acquisitions have to be keen on implementing injury prevention strategies, worker protection, and mitigation of risk factors. They should ensure the workplace safety is a top priority with proper frameworks for incident reporting and resolution.