Terminated After A Change Of Ownership
New owners took over and your job disappeared somewhere in the transition.
The company changed hands, a new name appeared on the letterhead, and somewhere in that transition your job simply stopped existing.
A change of ownership does not automatically end your employment rights, even though it can feel like a clean break for everyone involved. What actually happened to your contract during the transition matters.
Does a new owner have to keep the same staff?
Not necessarily, but how the transition was handled, whether you were offered a role with the new owner, and how your service history was treated all matter to fairness.
A termination that happens conveniently right at the point of sale, without proper process, deserves the same scrutiny as any other dismissal.
What happens to my length of service in a sale?
Depending on how the transaction was structured, your continuous service may or may not carry over to the new owner, which affects calculations like notice and any termination entitlements tied to tenure.
Ask for written clarity on whether your employment is treated as continuing or as a fresh start, since this changes what you are owed.
Who has to justify a termination during this kind of transition?
Your former employer, or the new owner depending on how the deal was structured, still carries the burden of showing there was just cause or excuse for ending your role1.
A termination used simply to avoid transferring obligations to a new owner, without a genuine business reason, can still be challenged.
How long do you have to act?
You have sixty days from your last day of employment to file a Section 20 representation with the Director General of Industrial Relations2.
If successful, remedies can include reinstatement or back wages capped at twenty four months for a confirmed employee and twelve months for a probationer3.
What should you do this week?
Gather your original contract, any sale or transition announcement, and correspondence about your role under the new ownership, if any was offered.
Compare your final payment against your length of service and notice entitlement, and read about a full company closure if the business did not simply change hands but stopped entirely. Use the deadline calculator to track your window.
Sharing the sale announcement and your contract helps a lawyer see how your termination fits into the wider transition.
Common questions
Does a business sale automatically end my employment?
Not automatically. Depending on how the sale was structured, your employment may transfer to the new owner or may genuinely end, and the details of the transaction affect what you are owed either way.
What if the new owner offered me a role on worse terms?
A significant downgrade in terms offered as part of a transition can itself raise fairness questions, similar to a demotion or pay cut. Compare the new terms carefully against your original contract.
Should I sign anything the new owner sends me quickly?
Take time to read any new contract or settlement document carefully before signing, since it can affect your continuity of service and other rights. A lawyer can review it with you first.
Does my old employer or the new owner owe me the final payment?
This depends on how the sale agreement allocated responsibility for existing staff obligations, so ask for clarity in writing from both parties if you are unsure who is responsible.
Sources
- In an unfair dismissal case the burden of proof rests on the employer to show just cause or excuse for what happened. Mah Weng Kwai & Associates
- An employee who believes they were dismissed without just cause may file a Section 20 representation within sixty days of the dismissal. Mah Weng Kwai & Associates
- Back wages awarded by the Industrial Court are capped at twenty four months for a confirmed employee and twelve months for a probationer. DNH
Keep reading
Sharing the sale announcement and your contract helps a lawyer see how your termination fits into the wider transition.