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Foreign employees’ work visas at risk in light of M&As

November 2024 employment law letter
Authors: 

Becky Fu von Trapp, Dinse P.C.

In the dynamic landscape of today’s business environment, mergers and acquisitions (M&As) have become commonplace, driving corporate growth and market expansion. However, amidst the strategic maneuvering and business restructuring, the fate of foreign employees’ visas or work permits is often overlooked or underestimated by human resources (HR) departments. The potential impacts of M&A on foreign employees’ immigration status can be significant, ranging from visa complications to jeopardizing employment authorization.

M&A activity impacts company and foreign workforce

It’s crucial for organizations engaging in M&A activities to proactively address the immigration aspects, ensuring foreign employees are safeguarded against potential disruptions and that the transition is managed seamlessly. Planning ahead and considering the implications for foreign workers’ visas is essential to mitigate adverse effects and prepare for regulatory changes that might arise during or after the merger process.

M&A activity can significantly affect the immigration landscape for both the company being acquired and its foreign workforce. Here’s why:

Visa validity

One of the immediate concerns during M&A activity is the validity of work visas for employees of the acquired company. Any changes in ownership or structure might trigger visa complications, potentially rendering these employees’ visas invalid.

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