What happens to an employee's terms and conditions of employment when a business is sold and taken on by new owners?
Some employees have a legal right to transfer to the new owner on their existing terms and conditions of employment.
Click here to find out the rules that cover the specified group of employees, that is those who work in:
cleaning services and food catering services in any place of work
laundry services for the education, health, or age related residential care sector
orderly services for the health, or age related residential care sector
caretaking services for the education sector.
Different rules apply to all other employees.
Many employment agreements contain provisions setting out how a change of business ownership may affect employees. Click here to view the employment agreement builder and suggested employee protection clauses.
Date Modified: Wednesday, 30 May 2012
Disclaimer: The content on this website covers common problems. It will not answer every question
and should not be used as a substitute for legislation or legal advice.State sector employers
and employees may be affected by some differences in the laws that apply to them (e.g. State
Sector Act 1988).The Department of Labour takes no responsibility for the results of any actions taken
on the basis of information on this website, nor for any errors or omissions.
