LBVentura
09-22-2003, 09:45 PM
Issue is whether a small San Francisco grocery ( 30 employees ) is
required to give notice to it's affected employees if it's neither a
business closer or a mass layoff.
The business wants to sell, but anticipates the new owner(s) will
continue the same business. Is any type of notice to existing
employees required? Does the answer differ if some workers are
replaced by new workers under new management? No employment contracts
or unions involved.
Thank you
McGyver
09-23-2003, 09:03 AM
"Arut Nev" <X130296@mindspring.com> wrote in message
news:itjvmvgj29kctdois9vfbvlal6kamq1bi1@4ax.com... Issue is whether a small San Francisco grocery ( 30 employees ) is required to give notice to it's affected employees if it's neither a business closer or a mass layoff. The business wants to sell, but anticipates the new owner(s) will continue the same business. Is any type of notice to existing employees required? Does the answer differ if some workers are replaced by new workers under new management? No employment contracts or unions involved.
If the business is a corporation or LLC or partnership and the business
entity is being sold, then no notice is required. The employees will
continue to be employed by the business entity. If the business is a sole
proprietorship or the assets of an entity are being sold, then notice is
required that employment is being terminated. The new owner will probably
want that notice to be coupled with notice that the new employer will be
hiring the employees. The only reason you need to give notice of employment
termination in this situation is that otherwise some of the employees could
continue to be your employees after the sale. Some employees will be hired
by the new owners. When they accept, that amounts to quitting your employ.
But if an employee is not picked up by the new employer, and you have not
terminated that employee, you could remain on the hook for wages until you
eventually terminate.
McGyver