In light of the coverage of the „Competition Authority's rules“ and mass redundancies

In media coverage of the group redundancies at Berjaya Hotels Iceland, in connection with the potential takeover of Berjaya's hotel operations by Íslandshótel, m.a. it has emerged that according to the „rules of the Competition Authority“, Íslandshótel cannot speak to staff who have been made redundant.

For this reason, the Competition Authority would like to emphasise that nothing in the merger provisions of the Competition Act prevents purchasers of hotels or new operators from also taking over the employment relationships of staff, re-employing staff, or otherwise providing them with explanations. Furthermore, the Competition Authority has not issued instructions to companies regarding their dealings with staff in this matter.

However, companies must always comply with the notification requirements of competition law when there are changes in business control. The takeover has not been notified to the Competition Authority, and at this stage it is not clear whether it constitutes a notifiable merger.