When there is a transfer of business, often an employee will ask the question: what are my rights? The good news is that your rights and obligations under Fair Work should not change: the National Employment Standards still apply.

A new employer legally must recognise an employee’s service with the old employer when working out most of their entitlements, such as sick leave and parental leave. However, a new employer may not have to recognise entitlements to redundancy, annual leave and notice of termination. Why? That’s the law: it’s the new employer’s choice.

In relation to redundancy, a new employer that is not an associated entity of the old employer can decide not to recognise an employee’s service to an old employer for redundancy entitlements. The old employer needs to then pay redundancy to the employee upon termination.

Regarding leave, accumulated annual leave with the old employer can be carried across to the new employer; or the old employer has to pay out the employee’s leave that has accumulated.

Finally, as a transfer of business terminates an employee’s position with the old employer, the old employer must provide notice of termination or provide payment instead of notice to their ex-employee.

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If you require further assistance with respect to the above or would like to know more, you are welcome to contact our team of experienced employment lawyers by clicking here to submit an online enquiry form or call us on 1300 QUINNS (1300 784 667) or on +61 2 9223 9166 to arrange conference or appointment. You can also order a free copy of our eBook on employment and contracting in Australia by clicking here.

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