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