Legal basis: Article 34 of People's Republic of China (PRC) Labor Contract Law. Where the employing unit is merged or divided, the original labor contract shall remain valid, and the employing unit that inherits its rights and obligations shall continue to perform it. General procedure of enterprise merger and reorganization
1. The merged enterprise carries out assets verification, cleans up creditor's rights and debts, and defines property rights;
2. Both parties to the merger shall submit a feasibility report, solicit the opinions of the creditor bank of the merged enterprise, and obtain the consent of the main creditors. A joint-stock company must form a resolution through the board of directors or the shareholders' meeting;
3. Convene a workers' congress on matters related to the merger to solicit the opinions of the employees of both companies;