M&A - Share or Asset Sale protection against employees' dismissal

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What protection do employees have against dismissal in the context of a share or asset sale?

Asset sale:

The substitution of the employer in a business sale must not affect existing employment relationships in a manner prejudicial to employees.

The replaced employer remains jointly and severally liable with the new employer for obligations under the labour agreements or imposed by law that arose before substitution one year from the notice given to employees of the substitution. After this term, the new employer has sole liability.

Share sale:

In a share sale, the company remains liable for obligations under the labour contracts. The share sale must not affect existing employment relationships in a manner prejudicial to employees.

Private mergers and acquisitions in Panama – María de Lourdes Marengo (mmarengo@pmalawyers.com) | Nadya Price (nprice@pmalawyers.com)

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An extract of the Private Mergers & Acquisitions Guide, originally published by Thomson Reuters