Transfer of Business Offer of EmploymentThis Transfer of Business Offer of Employment letter may be used to notify an employee that their employment is being transferred as a result of the business being sold.
This letter may be used to notify an employee that their employment is being transferred as a result of the business being sold.
Where an employer buys or sells a business, the sale may affect the entitlements of the employees already working for that business, under the Fair Work Act 2009 (Cth) (Act). Where the transfer of business provisions under the Act do apply to a specific transaction, it is worth noting that:
There is no obligation on employers to notify their employees of a transfer of business. However, employees should be consulted if they are going to transfer to the new employer.
Generally, where there is a transfer of employment, service with the old employer counts as service with the new employer. However, there are certain circumstances where this does not apply. When a new employer is not an associated entity of the old employer, the new employer may decide not to recognise a transferring employees’ previous accumulated service for annual leave or redundancy payments. The old employer may therefore be obliged to pay the affected employees their accrued entitlements.