What happens to employees when a business is sold?

In an **asset sale**, employees are technically terminated by the seller and rehired by the buyer at their discretionhttps://www.heritagelawwi.com/what-s-the-best-way-to-transition-employees-after-a-sale#:~:text=,buyer%2C%20subject%20to%20new%20agreements. In a **stock sale**, the legal entity remains intact so employees continue under the same employer, though the new owner may change leadership, culture or compensationhttps://www.heritagelawwi.com/what-s-the-best-way-to-transition-employees-after-a-sale#:~:text=,in%20leadership%2C%20culture%2C%20or%20compensation. Early planning is essential: parties should review employment contracts, benefits and pending litigation, identify key staff and document the workforce’s legal obligationshttps://www.heritagelawwi.com/what-s-the-best-way-to-transition-employees-after-a-sale#:~:text=The%20groundwork%20for%20a%20smooth,related%20risks. Consulting employment and M&A attorneys helps ensure compliance with WARN Act requirements, severance obligations, union agreements and state labor lawshttps://www.heritagelawwi.com/what-s-the-best-way-to-transition-employees-after-a-sale#:~:text=,buyer%2C%20subject%20to%20new%20agreements. Prime 100 helps you communicate with employees and stakeholders, answering your questions compassionately and providing guidance.