find the latest legal job
Corporate Counsel and Company Secretary
Category: Generalists - In House | Location: Newcastle, Maitland & Hunter NSW
· Highly-respected, innovative and entrepreneurial Not-for-Profit · Competency based Board
View details
Chief Counsel and Company Secretary
Category: Generalists - In House | Location: Newcastle, Maitland & Hunter NSW
· Dynamic, high growth organisation · ASX listed market leader
View details
In-house Projects Lawyer | Renewables / Solar | 2-5 Years PQE
Category: Generalists - In House | Location: All Australia
· Help design the future · NASDAQ Listed
View details
Insurance Lawyer (3-5 PAE)
Category: Insurance and Superannuation Law | Location: Brisbane CBD & Inner Suburbs Brisbane QLD
· Dynamic organisation ·
View details
Legal Counsel
Category: Corporate and Commercial Law | Location: North Sydney NSW 2060
· 18 month fixed term contract · 3-5 years PQE with TMT exposure
View details
M&A activity sparks HR due diligence risk

M&A activity sparks HR due diligence risk

Employers are risking thousands of dollars by not being on top of due diligence, according to a workplace law expert.As organisations continue to merge in the future, employers that have not…

Employers are risking thousands of dollars by not being on top of due diligence, according to a workplace law expert.

As organisations continue to merge in the future, employers that have not examined their employees' contractual entitlements thoroughly are exposing themselves to risk.

Shana Schreier-Joffe, managing partner at Harmers Workplace Lawyers, believes that the National Employment Standard as part of the Fair Work Act makes provision for an employee's service and contractual arrangements with an old employer to be recognised by a new employer in a merger or acquisition for certain entitlements.

"However, the transfer of employment entitlements can disadvantage the acquiring business as the employee's employment contract may stipulate specific provisions that could affect the new company," she says.

Significant risks also exist for employees, particularly senior managers and executives whose years of service with their employer will not count for the purpose of determining a redundancy entitlement.

"For example, an employer may seek to make staff redundant as part of the acquisition process. However, they may not realise that some employees have certain stipulations within their contracts, such as 12 month notice periods, which must be honoured," Schreier-Joffe says.

Schreier-Joffe adds that the seller and its employees may be significantly disadvantaged by assuming employees are entitled to redundancy payments when in fact they are not.

"Unless there is an explicit company policy, contractual right, a state award or an industrial agreement providing for a severance payment, the employee will not be entitled to a severance payment if their employment terminates before 1 January 2011," she says.

Like this story? Read more:

QLS condemns actions of disgraced lawyer as ‘stain on the profession’

NSW proposes big justice reforms to target risk of reoffending

The legal budget breakdown 2017

M&A activity sparks HR due diligence risk
lawyersweekly logo
Promoted content
Recommended by Spike Native Network
more from lawyers weekly
LCA president Fiona McLeod SC
Aug 17 2017
Where social fault lines meet the justice gap in Aus
After just returning from a tour of the Northern Territory, LCA president Fiona McLeod SC speaks wit...
Marriage equality flag
Aug 17 2017
ALHR backs High Court challenge to marriage equality postal vote
Australian Lawyers for Human Rights (ALHR) has voiced its support for a constitutional challenge to ...
Give advice
Aug 17 2017
A-G issues advice on judiciary’s public presence
Commonwealth Attorney-General George Brandis QC has offered his advice on the public presence of jud...
APPOINTMENTS
Allens managing partner Richard Spurio, image courtesy Allens' website
Jun 21 2017
Promo season at Allens
A group of lawyers at Allens have received promotions across its PNG and Australian offices. ...
May 11 2017
Partner exits for in-house role
A Victorian lawyer has left the partnership of a national firm to start a new gig with state governm...
Esteban Gomez
May 11 2017
National firm recruits ‘major asset’
A national law firm has announced it has appointed a new corporate partner who brings over 15 years'...
opinion
Nicole Rich
May 16 2017
Access to justice for young transgender Australians
Reform is looming for the process that young transgender Australians and their families must current...
Geoff Roberson
May 11 2017
The lighter side of the law: when law and comedy collide
On the face of it, there doesn’t seem to be much that is amusing about the law, writes Geoff Rober...
Help
May 10 2017
Advocate’s immunity – without fear or without favour but not both
On 29 March 2017, the High Court handed down its decision in David Kendirjian v Eugene Lepore & ...