This is what you should do if the company you work for is sold

The Danish banking sector is experiencing a vast number of mergers.

And when a company is bought or merged, it creates uncertainty about the future among employees. You might become in doubt about where you stand in the new set-up.

But even though the announcement may come as a shock because, for stock exchange purposes, companies are ordered to keep their cards close to their chests in the process, there is actually plenty of time for thought.

So says Mette Hjøllund Schousboe, lawyer and Chief Legal Adviser, whom union representatives and members rely on in connection with financial sector mergers.

"You should try not to get too worked up. Regardless of whether all the company's shares or activities are being bought, nothing further will happen for the moment. On the face of it, it'll not influence your employment terms. You have plenty of time to regather your thoughts.”

In many instances, the authorities must approve the transaction before a new employer is allowed to start making changes and terminating employment contracts – and this process usually takes months.

If an entire company is acquired, the collective agreement terms applicable to the employees covered by the merger may not be changed until, at the earliest, at the next collective agreement negotiations. This also applies to, for example, agreements that entitle employees to special severance pay in connection with termination of employment.

To your advantage

If you take your time instead of acting impulsively at the news of an owner you may not be able to see yourself working for, it may be to your advantage:

“Buyers are usually interested in holding on to the employees, and we see them providing bonuses or favourable terms to hold on to them. They are paid to stay," explains the Chief Legal Adviser.

Some buyers tempt with individual and graded bonuses. In other instances, a general bonus is paid in respect of the disturbance caused by the situation and the extra pressure placed on the employees, who are also to help curb any concerns that the customers may have and retain them.

If you are feeling under pressure and at risk in your current job, a new owner may turn out to be an advantage:

"If you're given a notice of termination, you'll receive pay in the notice period and often also severance pay. That will be a good way to move forward, because losing your job in connection with a business transfer is in no way negative when it comes to job hunting,” assesses Mette Hjøllund Schousboe.

Have your concerns clarified

She knows that keeping your cool is easier said than done when the news of an acquisition is announced at the workplace. On the other hand, the situation is unfortunately not unique as acquisitions and curtailments occur regularly in the sector.

"You can never be sure that you won't be affected in one way or another. Luckily, the individual employee has rights that alleviate the consequences," she says and encourages members to make use of their union representatives and Finansforbundet.

"Contact us to let us clarify your concerns instead of keeping them to yourself."