Transfer of Business
The FW Act identifies that a transfer of business occurs from one employer (the old employer) to another employer (the new employer) if the following requirements are satisfied:
- the employment of an employee with the older employer has terminated
- within 3 months after termination, the employee becomes employed by the new employer
- the work (the transferring work) the employee performs for the new employer is the same, or substantially the same, as the work the employee performed for the old employer
- there must be a connection between the old employer and the new employer as described below, including:
- transfer of assets from old employer to new employer
- outsourced work from old employer to new employer
- new employer ceases to outsource work to old employer
- new employer is an associated entity of old employer
At Stacks Goudkamp you can draw on our capability, knowledge and expertise regarding transfer of business provisions, including:
- Effects on employment instruments (modern awards, enterprise agreements)
- Instruments that may transfer under a transfer of business arrangement
- Transfer of business processes
- Transferring employees and the coverage provided by transferrable instruments
- Transferring employees who are high income employees
- Whether new non-transferring employees of the new employer may be covered by the transferrable instrument