Call Us Today 07 3087 3493
Home >  Blog >  Business Sales - Long Service Leave

Business Sales - Long Service Leave

Posted by Elizabeth Gore-Jones on 23 May 2019

This question comes up quite a lot in business sales.

The buyer and seller often reach an agreement between themselves that an employee with accrued long service leave will be paid out at settlement.

The aim is to start with a clean slate for the buyer when continuing the employment of that employee.

Caution: It is only possible to cash out long service leave if the applicable employment award allows it.

Worst case scenario: the employee has their long service leave paid out but then claims long service leave from the buyer of the business.

The employee may receive twice the long service leave entitlement!

This can result iin a loss of 1000's of dollars to the buyer which can be simply avoided if dealt with correctly under the business sale contract.

Author: Elizabeth Gore-Jones
About: Elizabeth specialises in franchising law. She lectures at Bond University PLA in franchising, she sits on the Queensland Law Society Franchising Committee, she is a past member of the Women in Franchising committee and a past member of the Franchise Council of Australia.
Connect via: Twitter LinkedIn
Tags: Business

latest news

Beware of Sneaky Acts

Aug 22 2019
Today's post might be better titled "You don't know what you don't know". The story goes something like this: you enter into a contract the contract includes a provision where the goodwill or intellectual...

Quick Question?

Liability limited by a scheme approved under professional standards legislation

Brisbane Office Address: Level 36, Riparian Plaza,
71 Eagle Street, Brisbane,
Queensland, Australia, 4001

Gold Coast Office Address: PO Box 428,
Oxenford,
Queensland, Australia, 4210