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ARTICLE · 15 FEBRUARY 2024

Purchase of property and the Fair Work Act

The sale of the property potentially triggered the transfer of business provisions of the Fair Work Act.

AustraliaEmployment and HR

We are currently assisting a client with the purchase of a building that has led to some unintended consequences relating to the transfer of business provisions in the Fair Work Act 2009 (Cth) ("FWA").

Relevant Background

A brief summary of the relevant background is as follows:

  1. Our client has two associated corporate entities pursuant to the Corporations Act 2001 (Cth);
  2. One entity, referred to as "the Buyer," entered into a contract with a party ("the Seller") for the purchase of a building. The contract included the building and land as well as a selection of chattels including equipment and vehicles. No intellectual property, processes or goodwill were part of the transaction, and it was not contemplated by the parties that any employees of the Seller would form part of the contract.

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