Definitions of change of control clause
(EMPLOYMENT LAW) a clause in an employment contract that entitles the employee to a specified payment or increased notice period if their employer is taken over and the takeover results in either dismissal by their employer or an unreasonable reduction in the employee's responsibilities leading to constructive dismissal
The change of control clause entitled many of their employees to a substantial payment following the takeover.
a contract term that gives one party increased protection if the other party's controlling shares are transferred
In commercial contracts a change of control clause will often give the party who is not subject to a change in ownership the right to terminate the agreement in the event of a change of control of the other party.