This is the point mentioned in my agreement regarding acquisitions, but I cannot understand this clearly. Does this mean I'll be forced to continue my agreement with acquired company, or can I relieve from this agreement and leave my job? I have 1 year of agreement remaining.

In the event that my employment is transferred by X, to a subsidiary or affiliated company,My employment with such company will, for the purpose of this agreement, be considered as continued employment by X, unless and until I execute an agreement, substantially similar in substance to this agreement, then in force in any such company for which I become employed.

X is my company name.

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    This is a specific legal question about a specific clause in a specific contract. You need to ask a qualified lawyer. – Kaz Feb 27 '17 at 11:37
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    Voting to close because it is a pure legal question. Not only must the above statement be understood, but so does the nature of the acquisition. They could be merging, they could remain a wholly own subsidiary, or they could be buying the technology and firing all the workers.... – mhoran_psprep Feb 27 '17 at 11:38
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    The only thing that the clause quoted above does is confirm that your employment duration is retained if you transfer to the new company (this might also allow you to keep duration related benefits (for example, holiday entitlement). – user44108 Feb 27 '17 at 11:48
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    Interpretation is legal opinion. "Does this clause in my contract mean X?" is a question that only your lawyer (or maybe your HR department) can give you a definitive answer to. – Kaz Feb 27 '17 at 12:53
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    If your company was acquired, I'm not sure the acquiring company would count as "subsidiaryor affiliated company", ask a lawyer – cdkMoose Feb 27 '17 at 15:55

Yes, according to the clause you have quoted, your employment agreement will considered to still be active and in force even after transfer to another entity, unless you subsequently sign a similar agreement with the new company.

In other words, an acquisition doesnt void your agreement.

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    Downvoting because there is nowhere near enough context to offer an accurate legal opinion. And because answering clearly Off-Topic questions should be discouraged. – Kaz Feb 27 '17 at 11:39
  • Thanks, My company is asking me to sign in a new agreement with the new company,Is it mandatory for me to sign?. They want me to resign from X company and join Y. Do i have to? – Vegeta Feb 27 '17 at 12:49
  • @Thickar well, that all depends on your local laws - here in the EU we have TUPE to manage employee contractual obligations after transfers to new entities, and I have no idea what your local laws are. Not only does that constitute a new question (and should be asked separately) but its also something that requires a lot more legal interpretation than your original question, and as such will probably be closed as such. – Moo Feb 27 '17 at 12:52
  • @Thickar Ask a lawyer, or maybe your HR department. – Kaz Feb 27 '17 at 12:54
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    @JoeStrazzere In this case, I disagree. "What does this clause in my contract mean in the context of this merger?" is, IMO, about as clear an Off-Topic question as you can get. – Kaz Feb 27 '17 at 12:57

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