Essential Skills 1-day intensive

Module 3: Employee issues during trading on and sale

The careful management of employees and employee issues, particularly in a trading on and/or sale is critical. Employee entitlements can significantly impact the outcome to other stakeholders, and their involvement and co-operation can often be critical to success. Further, failure to carefully manage the expectations of this creditor group has high reputational risk.

This module considers the employee issues when trading on or selling a business, including considerations when employing, transitioning post a sale and/or terminating, and the priority and payment of entitlements, including apportionment between pre and post appointment periods.

Learning objectives

At the end of this module you will be able to:

• Recognise key factors involved in employing during trading on and in the event of a sale.
• Understand requirements to prepare for and implement redundancies in an appointment.
• Understand the priority of entitlements and the requirements in differing appointment scenarios.
• Recognise subrogated priority claims.
• Determine how to apportion entitlements for employees retained after appointment.