Once settlement occurs the current staff of the business will become the new purchaser/vendors’ staff. It can become disruptive to the sales process if the you, the seller attempt to include special concessions for current staff in the sales contract. Most, if not all purchasers will interview your staff about two to three weeks prior to settlement. During this process, it is usual for many staff to be offered future employment, with a three-month probationary period.

There are two ways you can approach staff entitlement:

  • You pay out the staff
    You pay all of the staff entitlements at the time of settlement and the purchaser inherits the staff with no encumbrances.
  • You pay the purchaser the staff entitlements
    You pay the purchaser the staff entitlements and the purchaser pays the staff their entitlement when the entitlement is due.

Please discuss your specific situation with your solicitor who will advise you on the preferred method of dealing with the above. Payment of entitlements occurs as part of the settlement. The Pharmacy Guild HR personnel are an excellent source of advice. Contact them early to determine what you may owe your staff.