Long service leave – a hidden cost when buying a business

This announcement is for: 
Employee / workerEmployer

Business owners and their accountants need to be aware that when someone purchases a business or part of a business in Western Australia, if there has been a transmission of business, the new owner will take on the long service leave obligations for existing employees, and this is regardless of anything written in a sale of business contract.

In order to be entitled to long service leave under the Long Service Leave Act, an employee must have continuous employment with ‘one and the same employer’. ‘One and the same employer’ is not necessarily limited to one employer. If there has been a transmission of business, the term ‘one and the same employer’ will include any employers who previously owned that business and employed that employee.

Anyone involved in buying or selling a business should check their obligations on the Buying or selling a business page of the Wageline website.

For more information call Wageline on 1300 655 266 or visit the Long service leave page.

Labour Relations
Department News
12 Jul 2021

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