What happens to leave, redundancy and other entitlements if there was a transfer of business after 1 July 2009 but before 31 December 2009?
The liability of your new employer for leave, redundancy and other entitlements depends on your circumstances.
In general, if there was a transfer of business and the ‘connection’ between your previous and new employers occurred between 1 July 2009 and 31 December 2009, your new employer:
- became liable for any parental leave entitlement that you accrued under the Australian Fair Pay and Conditions Standard (the Standard). This entitlement may be separate from any additional entitlements to parental leave (such as paid parental leave) that you had under another industrial instrument, such as a contract of employment, workplace agreement or award.
- must treat any service that you had with the previous employer, or that the previous employer recognised counted towards your parental leave entitlement under the Standard, as service with your new employer.
However, the new employer may choose not to assume liability for, or recognise your service with your previous employer, for other entitlements that accrued under the Standard, such as annual leave or personal leave.
If they choose not to recognise your previous service, then your previous employer must make payment for any accrued annual leave. If your new employer does not assume liability for, or recognise your service with your previous employer for the purposes of any personal leave you may have accrued under the Standard, there is no general obligation for your previous employer to pay you this amount.
Note: the new employer’s decision must be made in writing before they employ you.
Depending on your circumstances, you may or may not be entitled to redundancy pay as well. If so, this entitlement will transfer to the new employer.
Note: that there is no general entitlement to redundancy pay before 1 January 2010.