NSW Business Merger - Are the old contract termination clauses enforcable

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YummyTimTam

Member
12 September 2017
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0
1
Hello,

The Company I work for has recently acquired a competitor, and as a result both companies decided to merge with into a new business entity.
As a result of that, the old legal entities will be merged in a month time and we have been informed that we will be given new employment contracts for the new resulting company.
As far as I understand it, that means that my old contract will be terminated once the new one comes in play.

So far, my contract contained a pay off clause if I should be made redundant.

My question is:
If I decide not to sign the new contract, does that mean I will be made redundant and that the company is still required to pay the pay off for redundancy as per condition of my old contract?
 

Rod

Lawyer
LawTap Verified
27 May 2014
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905
2,894
Most likely yes, but get legal advice before taking action.