Worker believed employment continued but acquiring company never offered contract
The Fair Work Commission recently dismissed an unfair dismissal application involving a clinic manager who claimed employment with a new franchise owner following a rushed business sale.
The case arose when the worker attended and performed duties during the transition period but was never formally employed by the acquiring company, leading to disputes over whether an employment relationship existed during the brief overlap period.
The worker argued she had been employed by the new franchise owner after her original employer's business was sold, maintaining that her continued work performance and unchanged duties demonstrated an ongoing employment relationship.
She contended that working under new systems, in the presence of new management, and generating revenue for the business established employment with the acquiring entity.
The franchise buyer contested the employment claim, arguing no contract or mutual intention to create an employment relationship existed. The company maintained that its temporary operational control during the transition was purely to preserve business continuity, with formal legal ownership only occurring after the worker had ceased attending the premises.
The employment dispute stemmed from the rushed sale of a cosmetic procedures franchise due to the original franchisee's financial distress.
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