Do service and entitlements roll over if the business you work for changes hands?

When a business changes hands, employers have limited options when it comes to their employees. They must either end the employment relationship or if the new business owner chooses to offer ongoing employment, a transfer of employment can occur. Either way, the Fair Work Act requires employers to provide their employees with written notice.

A transfer of employment may happen in two different circumstances - where the transfer is between associated entities or non-associated entities. Whether or not an employee's service (and entitlements) with the first employer will count towards the new employer will depend on the relationship between the two employers.

In this regard, it is important to know whether the employers are associated entities.