mARCH 2012 www.lawyer-monthly.com Legal Focus

BONN STEICHEN & PARTNERS was founded on January 1st, 2012 by eight of the original ten partners of the former firm BONN SCHMITT STEICHEN

Anne Morel

redundancies either on an individual or collective basis.

Q

All the companies involved in a cross-border transaction must comply with the information/consultation requirements, as might be required, especially because criminal sanctions are attached to a breach in this respect.

Q Q

what due diligence should companies carry out?

The due diligence should notably cover the following: number of employees concerned by the transaction, nature of the employment relationship, whether there is a need to have set up employees’ representation bodies, whether employees’ representation bodies have

How do these challenges alter when a deal is cross-border?

When carrying out cross-border transactions, attention must specifically be brought to the timing in implementing the various national

been set up when legally required, whether the merging companies have complied with any prior information/ consultation process, when and as required, whether the company being acquired has complied on a general basis with the social legislation, whether litigations are currently pending.

legal

information/consultation requirements. The challenge relates to the way the various national legal requirements will be combined.

what are the transactional risks involved?

Q Q

Are there many cases of employment-related litigation that arise with the M&A market?

On a general basis, my experience is that the required procedures are implemented and the transactions do not give rise to litigation on a collective basis. However, in the context of mergers, litigations on an individual basis are likely to arise when measures are implemented in respect of the transferred employees, notably attempt to amend the working conditions or employment terminations.

Have you noticed a rise in employment-related cases as the world recovers from the financial downturn? will this continue?

My experience has shown that the number of employment-related cases has continuously increased the past ten years and I do not anticipate any downturn for

the time being in consideration of the economic context.

Q

Have there been any significant

legislative

changes recently? Do you see the need for any?

Luxembourg labor law has not recently seen any significant changes. However, social dialogue remains a topic of high importance in Luxembourg and ways to make it even more efficient are being explored. In the same way, a reform of pensions is envisaged. LM

Contact: 63

Anne Morel

22, Rives de Clausen – L-2165 Luxembourg

Tel: +352 26025-1 Fax: +352 26025-999

Email: amorel@bsp.lu Website: www.bsp.lu