Transfer of Business

[Roelie]

Hi guys,

Can someone quickly inform me what I need to focus on when transfer of business taking place, keeping the fair work act in find.

Does employee conditions change for old staff that is being taken over by new employer. If there is a transer of business instument such as Collective agreement in place, does that expire emmediately or only on expiry date etc etc

Your response will be greatly appreciated.

[Aaron]

Hi Roeli,

Good question. The employee contract is an agreement between the employee and the company entity.

If it is the company that is being tranferred (not just the business) the employee terms will remain as they are. If only the business is being transferred to a new entity, then new employment terms will need to be drawn.

I would recommended seeking legal advice before progressing though, as this area can be a minefield.

Hope it helps,
Aaron.

[Roelie]

Hi aaron,

Thanks for your reply. Yeeh, it is a complicated one. Fortunately all worked out well in the end :-)