There are a number of employment issues that arise on the sale of a business, including whether accrued entitlements transfer to the purchaser or should be paid out by the seller. Very often the parties fail to adequately consider all of the issues, for example, what steps may be taken to retain the services of key employees and whether or not enterprise agreements entered into by the seller will become binding on the purchaser.
If you are selling, we will provide you with advice on the best way to structure the employee clause in your sale agreement. We can also assist you, prior to commencing the sale process, to ensure that your employment arrangements will be attractive to prospective purchasers and facilitate a smooth transition of the business. This may include measures to encourage key employees to remain with the business and transfer their employment to the purchaser.
If you are purchasing a business, we will advise you on the obligations you may be assuming and help you develop an employee clause for inclusion in your agreement. If the seller’s employees are covered by an enterprise agreement, we can advise of the consequences that may have on your business and on whether or not you may be able to seek an order to prevent the agreement becoming binding on you.