The business was sold and the employer name changed: does my service start again?

Name change vs. transfer of business

A company changing its trading name is different from your employment ending with one legal employer and beginning with another. FWO’s transfer-of-business framework includes employment with the new employer within three months, the same or substantially the same work, and a qualifying connection between the employers. Check that framework and then each entitlement separately: an announcement of a sale or a new logo does not establish which service or leave balances carry over.

Identify what legally changed

To assess your situation, gather documents that show the old and new employer names, your contract versions, your last and first employment dates, and your actual duties. Record whether you remain with the same legal entity or are offered work by another entity. Distinguish a change of payroll provider from a change of employer—a payroll-service change does not by itself establish a new employer. Save any correspondence about the transfer, including any promise of continuity. These records help you and an adviser see what actually changed.

Check entitlements one by one

Request a written account of your annual leave balance, notice period, redundancy-related service, and the industrial instrument that will apply after the transfer. Compare any payout you receive with the balance and service said to transfer. Do not rely on a single statement that “everything resets” or “everything carries over” as the calculation for each entitlement. Keep visible any exception and its stated basis—for example, annual leave may transfer in some circumstances, but redundancy pay may have different recognition rules.

Before accepting replacement terms

If the transfer is disputed, or if the replacement offer changes your duties, pay, or recognised service, seek advice before accepting. Keep the deadline for responding and the effective dates of any offer. This guide cannot decide every transfer connection or calculate continuity from a business name alone. It helps you avoid confusing a commercial sale with the separate employment consequences that need checking.

Hypothetical illustration

Imagine you worked for Company A for five years. Company A sells its assets to Company B, and you receive a new contract from Company B with the same job title and duties. Your pay slips now show Company B’s name. You ask whether your service continues. To answer, you would check whether Company B is a new employer, whether your duties are substantially the same, whether the new employment starts within three months after the old employment ends, and whether there is a connection between A and B. If all conditions are met, some entitlements may transfer, but you would still need to check each one. A useful question to ask your employer is: “Under the transfer of business provisions, which of my entitlements are recognised as continuous, and which are not, and what is the basis for each?”

Next steps if unresolved

If your employer does not provide a clear written explanation, or if you believe the transfer rules have been misapplied, you can seek further assistance. Bring your records—old and new contracts, pay slips, and any correspondence about the transfer—to an employment adviser or a community legal centre. Ask specifically which transfer conditions are met and which are not, and request a written breakdown of each entitlement. If the matter remains unresolved, ask which enforcement or dispute route covers the particular entitlement, and check its deadline promptly.

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