Package includes:

Online CPD Module  l  Electronic booklet  l  PowerPoint Presentation

Package Fee (incl GST)

• $145 - NZLS members and Associate members
• $195 - Non-members

Note: Access to the online files is via your "My CPD" page. If you would like to purchase multiple packages, please contact us here.

Online CPD Module

Understanding the obligations to employees when buying or selling a business is essential in helping to ensure a smooth transition from one owner to another. This seminar will look at some of the key obligations that arise, including; requirements regarding employment contracts, vulnerable employees, consulting with employees, and redundancy entitlements.

This module will include:

• A practical guide of issues to look out for when negotiating the buying or selling of a business; including:
  - requirements regarding employment contracts – what can, can’t and should be done
  - Holidays Act 2003
  - availability provisions
  - decisions around the current workforce
• A discussion of the sales documentation process and the due diligence required during this process; including:
  - best practice checklist for the buying process
  - hours of work
  - obligations for compliance including time records
  - what to do when vulnerable employees are involve
  - Health & Safety obligations
• A brief outline of the amendments to the Employment Relations Act.

Learning objectives

By completing this module you will gain:

• Knowledge of employment implications to look out for when negotiating the buying or selling of a business.
• Practical tips on the sales documentation process and how to get this right first time.

Electronic paper 

Authors: June Hardacre, Simon Mitchell 
Published: 27 May 2021
Pages: 17

Introduction

Employees are working capital in any business and are key to its operations. Therefore, it is crucial to carefully think about the workforce when buying or selling a business (whether its share or its assets). This is because employee structures and documentation will have an impact on both the sale documentation that is prepared and on the continuity of the business both before and after it is sold. Considerations regarding the workforce can be overlooked or minimised in business sales and purchases, which can lead to issues later in the process.

This paper addresses some of the key considerations for businesses undergoing a sale and purchase process. This includes:

• the differences between an asset sale and a share sale in relation to the impact on workforce;
• the due diligence process:
  • i. understanding the employment agreements and relationships;
  • ii. what to look out for;
• considerations during the buying process:
  • i. retention and redundancy; and
  • ii. employment clauses, warranties and indemnities in the sale and purchase agreement;
• changes to the Employment Relations Act 2000 (ERA) which may impact on considerations when purchasing a business; and
• changes to the employment framework as a result of COVID-19.

PowerPoint Presentation

These are the slides included in the presentation.