Pharmaceutical business restructuring in Kazakhstan
Recently Legal Alliance Law Firm has helped a client change the business model in the Republic of Kazakhstan.
The client has decided to suspend the operation of its local office and transfer the management of individual business processes to its partners.
During restructuring, our team assisted the employee downsizing. With this purpose, Legal Alliance has performed a risk assessment, developed several alternative dismissal plans, prepared the necessary documents and participated in meetings with employees.
Concurrently with downsizing, we have initiated negotiations with an outstaffing company to terminate the contract and dismiss the relevant employees. Our team has terminated the contract with the outstaffing company on terms favorable to the client, and the labor rights of external staff have been treated with respect.
As part we also conducted a legal due diligence of the relevant contracts with the contractors accompanying the activities of the client's local office. According to the due diligence's result, we have arranged for the early termination of over 90% of existing contracts without penalty.
Subsequently, Legal Alliance held negotiations and arranged the conclusion of contracts with new counterparties to continue the client's operation in Kazakhstan where necessary, taking into account the updated model of work.
With the support of local colleagues, partner Vitalii Savchuk and senior associate Yaroslav Furiaka have worked on the project.
As Yaroslav stated: "Our team successfully coped with the task and achieved the necessary result. Thanks to our efforts, we have ensured uninterrupted client's operation despite global changes. The support of Legal Alliance allowed the client to effectively and swiftly change the model of its presence in Kazakhstan and to fulfill all of its obligations before the employees, the partners, and the state."