Examples of Employment Agreements to Rehire Employees in an Asset Purchase

August 19, 2022

by a searcher from Brigham Young University in Dallas, TX, USA

Does anyone have examples of employee agreements that can be used to rehire all of the employees in an asset purchase? Once we close, all the employees will be effectively terminated and rehired. We need to put together employment agreements for each of them to sign. Any advice on the best route to go here? Should I have our attorney draft the agreements, or do I just find a simple template? Thanks!

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Reply by a searcher
from University of Colorado at Boulder in Georgetown, CO 80444, USA

Depends on the type of worker. I took over 700 employees in an acquisition with about 650 being line workers. We used the process to build the employee files from templates. Line workers were done in groups with one on one meetings with managers giving management the opportunity to explain our new core values. . We had a little on boarding celebration. Where we covered our values and the goals of the new company. We gave spot bonuses to people who exhibited leadership qualities we liked and we unveiled various bonuses for employees who were instrumental for growth. We dispelled rumors we were firing people. Management was done individually and before line workers. These compensation packages were done on a case by case basis. In nearly all cases the same template was used for management just the numbers were changed to meet financial goals and the kpi were inserted as their barometer of success. Would be happy to chat further as I like networking and am interested in learning more about the lower middle market.

Reply by a professional
from Dartmouth College in Los Angeles, CA, USA

Most employees do not have employment agreements other than senior management. Probably best to talk with an employment lawyer in your state to confirm any state-specific requirements, but typically you might have an offer letter for each which lays out their proposed compensation, bonus, role expectations etc. Depending on the business you may want them to sign Confidentiality and Proprietary Invention Assignment Agreements. If they are getting equity you would have an equity award agreement as well. You could definitely find a form of Offer Letter online since they are pretty basic, but it may be worth talking with an attorney locally about any pitfalls.

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