Global outsourcing transactions often require companies to navigate not only complex commercial issues, but also employment-related regulations and local practices that can vary significantly across jurisdictions. As organizations continue to transform their operations through outsourcing, managed services, and digital and AI transformation initiatives, labor and employment considerations have become an increasingly important part of transaction planning.
Partner Kat Gibson advises multinational companies on the employment issues that arise in outsourcing transactions, including employee transfers, workforce restructurings, reductions in force, consultation obligations, and cross-border employment compliance.
We recently sat down with Kat to discuss some key labor issues companies should be thinking about when planning global outsourcing transactions.
1. Labor and employment issues are often viewed as a downstream workstream in outsourcing transactions. Why should companies be thinking about them much earlier in the process?
Labor issues frequently drive the transaction timeline, costs, and overall feasibility of an outsourcing arrangement. In many jurisdictions, companies must satisfy statutory consultation obligations, negotiate with works councils or unions, or comply with employee transfer regulations before implementation can occur. Bringing employment counsel into the conversation early allows organizations to identify these issues upfront,...
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