Staff Transfers and Employment Obligations When Buying a Business

Law Tram simplifies staff transfer and employment obligation matters during a business purchase by connecting you with licensed Australian lawyers who understand Fair Work requirements, entitlements and transfer rules. This fully online and obligation-free service helps you navigate legal responsibilities with clarity.

Buying a business with staff? Know your legal obligations

When you purchase an existing business in Australia, you may also be taking on responsibility for its employees. This can include ongoing entitlements such as leave balances, redundancy risks, awards, enterprise agreements, and even prior underpayments.

Failing to address staff transfer issues properly can lead to Fair Work claims, penalties or unexpected costs. It’s important to know which employees you’re legally required to take on, and what rights and entitlements they keep under the sale.

Law Tram connects you with lawyers who can explain your responsibilities, help you draft proper clauses in the sale contract, and manage risks when employees transfer.

Person consulting an Australian lawyer about staff and employee transfers during a business sale.

Law Tram's Legal Partners can assist with employee matters during business sales, including:

Why choose Law Tram

Person reviewing employee transfer obligations with a legal adviser in Australia.

How it works

Confidential and Secure Questionnaire

Start by completing our secure online questionnaire. This step allows you to provide essential details about the business and its existing staff arrangements.

Confidential Legal Summary

Law Tram’s advanced technology generates a confidential legal summary of your situation while keeping your personal and business details private.

Review by Licensed Australian Lawyers

Your confidential legal summary is shared with our network of vetted lawyers who review your case to determine how they can assist.

Connect with a Lawyer

If a lawyer believes they can help, they will initiate a chat with you through the Law Tram platform. Your contact details remain private unless you choose to share them.

No Obligation

You are under no pressure to retain any lawyer unless you are confident in their ability to assist. Law Tram empowers you to make informed decisions.

What Others Are Saying

Rajesh, Melbourne

I didn't realise I could be liable for previous staff underpayments. The lawyer helped renegotiate the contract so I wouldn't be stuck with that.

Cindy, Queensland

I was confused about what to do with part-time and casual staff. The lawyer gave clear advice and helped with the new contracts.

Max, NSW

The business had five employees and an old enterprise agreement. I'm so glad I got legal advice before signing anything.

Legal information only – not a substitute for advice

This page provides general legal information only. It is not legal advice and should not be relied on as such. Employment obligations during a business sale are governed by the Fair Work Act and other legislation. You should seek advice from an Australian Legal Practitioner before completing any transaction involving staff transfers.

Note: “Free service” refers only to Law Tram’s platform and process, not the legal advice itself.

Person seeking a solicitor’s guidance on managing staff transfers under Australian employment law.

Take the first step toward resolution

Law Tram offers a secure, efficient and supportive way to connect with lawyers who understand the legal issues involved in staff transfers and employment obligations during a business purchase or sale. Whether you need guidance on employee entitlements, transfer rules or contract changes, our platform helps you access tailored legal advice before you proceed.

Take the first step with clarity and peace of mind by starting your free online consultation with Law Tram now.

Frequently Asked Questions

In many cases, no — but if you do, certain rights and entitlements transfer. A lawyer can help you understand your options and the consequences.

You may be required to recognise their existing balances, or have the seller pay them out before settlement. This should be dealt with in the sale contract.

You can offer new contracts, but some award or agreement conditions may still apply. Legal advice helps you make lawful changes.

Potentially yes, especially if the business continues substantially the same and you take on the employees. A lawyer can help you minimise this risk.

It refers to situations where a business is sold and continues under new ownership. The Act sets out rules about how employment terms and entitlements must be treated.

In many cases you do, especially for entitlements like personal leave and redundancy, but it depends on how the transfer is structured. A lawyer can explain which service periods must carry over.

You can issue new contracts, but they must meet minimum standards and cannot reduce certain protected entitlements. Legal advice helps ensure the contracts are valid and compliant.

Employees can choose not to accept a transfer. This may affect redundancy, notice and final payment obligations, so it is important to understand your responsibilities before settlement.

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