Employee Rights During Mergers and Acquisitions

How to Communicate Change Effectively and Minimize Uncertainty

Mergers and acquisitions (M&A) are a common part of business growth and market consolidation. However, for employees, they often bring uncertainty, concerns about job security, and questions about changes to working conditions. While Czech law provides strong protection for employee rights, the real success of any transition lies in timely and transparent communication.

What Does the Law Say?

Under the Czech Labour Code (§ 338 et seq.), a merger or acquisition triggers the transfer of rights and obligations from employment relationships. This means the new employer assumes all duties and commitments towards employees—this includes wages, benefits, vacation entitlements, and existing agreements on working hours.

In other words, employees retain their legal position and all previously agreed rights. Furthermore, they have the right to be informed about the changes—at least 30 days prior to the effective date of the transfer.

Employer’s Obligations

Employers are legally required to inform employees (and employee representatives, if applicable) about:

• the planned date of the transfer,
• the legal, economic and social implications of the change,
• any measures that will affect employees.

If trade unions or employee representatives operate within the company, the employer must engage in consultations with them regarding the transition and any planned changes (such as restructuring or adjustments to benefits or job roles).

How (Not) to Communicate Change

From practical experience, we know that poor communication—not the change itself—is often the source of employee anxiety. People don’t fear the merger—they fear the unknown.

The most common mistakes:

• silence from leadership (“We’ll tell you when we know more”),
• inconsistent messages from different levels of management,
• late-stage communication,
• overly technical or legalistic language.

Recommended approach:

1. Be transparent: Share what is happening, why, and how it might impact the team—even if some details are still being finalized.
2. Use a clear and human tone: Communication should be respectful, straightforward, and empathetic.
3. Keep it regular: Provide updates at consistent intervals, even if no major changes have occurred.
4. Allow space for dialogue: Organize Q&A sessions, ideally in person, and offer one-on-one conversations for individual concerns.
5. Collaborate with HR and legal experts: Prepare a clear summary outlining what is changing and what will stay the same.

A well-managed merger or acquisition does not have to trigger stress or insecurity. When leadership treats employees as informed partners, change becomes an opportunity—not a threat. The key lies in openness, respect, and legal certainty.