VIC Unfair Dismissal following Company Sale?

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Deborah A

18 August 2014
Preston West
I was employed by a company (X). I was permanent, and had a signed contract. I felt secure in my job so purchased a home to be closer to work. I purchased the home in July 2014. All staff were called into a meeting the week before last (by the Manager of company X, he advised us that company X had been sold to company Z. We were told that company Z wanted us to be assured that every person would be kept on in their current roles. We were told that company Z would be coming in to speak to us immediately.

Company Z Management came in immediately and told us of some changes that would take place. They told us that one of the owners of company X had approached him (General Manager of company Z) with an offer of selling company X. This initial contact took place about a year ago. I joined company X in October 2013. I did not buy my property until I passed my probation, and was sure that I had permanent, secure and stable employment.

At this meeting the Manager of company Z told us verbally that all of our jobs were safe. I would not have purchased my home if I had of known negotiations of sale were taking place. This information was not made public. It was totally secretive. I went to work on Wednesday August 13 2014. I was told by the manager of company X that settlement with company Z would take place at 5pm on Thursday August 14 2014. I was told that as a consequence of the sale I was no longer employed.

I believe the contract of sale stipulated that all staff entitlements would be honoured.


LawConnect (LawTap) Verified
27 May 2014
Get in writing from company x what the agreement was for staff. Staff entitlements either have to paid out or transferred as part of the sale.
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I would make some further enquiry as to whether you are entitled to a redundancy.

Redundancy occurs when an employer no longer wishes the job an employee has been doing to be done by anyone, which can be due to sale of the business. Where a termination of employment does occur by reason of a sale of a business, such a termination will usually constitute a dismissal by way of redundancy. Usually the new owner of the business only has this option or to offer the employees the same or better employment conditions. In the event that the new business owner does not wish to take on all employees, those left without continuing employment are regarded by the law as being redundant and may be eligible to receive redundancy payouts.

You can read more about redundancy here:
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