Share Sale Agreement Employees

This means that the seller must terminate all employees of the company and pay all outstanding staff claims during or before invoicing. Among the claims that the seller must pay, please contact us at 07 5443 9988 or 07 5443 9988 or [email protected]. A buyer who decides to transfer employees from the original company to the new one must inform the employees. You must do this before concluding the sales contract. In this situation, employees do not “transfer” but stay where they are. Once you sell your shares, the company`s employees will continue in their positions. They also retain all their rights, including annual and long-term leave, rates of pay and conditions. The buyer can acquire the business with or without taking over the existing employees of the business. This issue is open to negotiation, as the agreed terms are included in the sales agreement. If the buyer agrees to buy the business and take over its employees, the employees must be transferred to the purchasing unit. For example, the buyer`s business must rehire employees. A share purchase can be more complex than a purchase of operating assets, as shares come with a number of potential debts. When a buyer acquires 100% of a company`s shares, the buyer takes control of the business and all assets and debts.

In deciding whether a share purchase is a good thing for you, it should be taken into account that, from this perspective, debts related to staff layoffs are often the subject of extensive negotiations between the buyer and the seller. In order to minimize liability, the seller usually wants the buyer to hire all of its staff under the same conditions, instead of selecting only selected employees. If the buyer does not wish to retain all of the seller`s employees, the parties thus negotiate the allocation of responsibility for the cancellation fees. However, if you offer a new job to employees, but you refuse that offer, they are not entitled to severance pay, provided that the buyer is aware that section 9 of the Employment Act, 2000 (“ESA”) states that, where the buyer employs an employee of the seller, benefits that depend on an employee`s seniority, such as leave, dismissal or remuneration instead of dismissal and severance pay are transferred to the worker`s employment relationship with the buyer. .