What do I do about previous staff entitlements when I purchase a business?

This is an issue which is normally dealt with in the purchase and sale of business contract which you sign with the old vendor of the business. There is usually a clause which addresses the liability for staff entitlements which are to be taken on by the new owner. Normal business practice is that the person leaving the business will pay out the existing staff entitlements at the time of sale and then the new owner will re-hire the staff on their own terms once they have posession of the business. THis would normally mean that the long service leave entitlements will not accure from the previous period of ownership of the business, the entitlement should have been paid by the previous owner. Try looking at the contract. If there is nothing there or the contract has been lost. I hope that this information is helpful. Please do not hesitate to contact me if you would like any further information.


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