ABSTRACT
Emotionally, employees are going through a transition phase and will be extremely sensitive to any change in their employment packages. With their loyalty weakened at a time when it is most needed, adjusting the compensation and benefits package is a delicate issue which, if properly managed, can be used greatly to the company's advantage; but if poorly handled, can trigger unwanted resignations. The analysis of contractual terms of employment will focus on the two key issues: the employment contract, and salary and commission systems. Although in many European countries, the existence of a written employment contract is not a legal obligation, it is the general practice for both managerial and general staff, and should undoubtedly be the course to follow in an M&A process. The analysis of management's contractual terms of employment is normally carried out during the Due Diligence process. The general terms of employment will focus more, as its name indicates, on general terms.
