How does my sale or purchase affect staff entitlements?
It is important that the purchaser of a business knows what accrued staff entitlements it will be responsible for after acquisition, for example, long service leave, sick pay or holidays. Provision for these obligations should be clearly settled with the previous owner in negotiations before the sale. The owner should be aware, too, of the effect of fringe benefits tax on any benefits given to valuable staff to induce them to stay on. In many instances, the staff are the most vital single asset when you buy a business, but it is difficult to prevent them from leaving. It can be important to many businesses to ensure that any staff who leave, or even the previous owner, do not set up in opposition using special knowledge or confidential information which has been gained from the business you bought.
