Welcome to the first edition of the Rees R & Sydney Jones
monthly news bulletin.
The publication is specifically designed to achieve the
following:
· Keep you up to date on legal issues that affect the
accounting profession.
· Provide handy tips regarding legal technicalities that may
arise in the course of your client dealings.
· Discuss the best methods of proceeding when we need to
work jointly to resolve a client issue.
· Let you know what is happening at Rees Jones and the
direction in which we are heading.
We will also regularly, include staff profiles as well as
details about any new members joining us or old ones
leaving.
We have for many years, valued the support that you have
given this firm. The main reason for this newsletter is to
stay in touch and hopefully offer some information that may
be helpful.
BUSINESS SALES – SICK LEAVE AND LONG SERVICE LEAVE
One recurring issue at the moment in business sales is the
treatment of employee sick leave and long service leave.
As sick leave cannot be “cashed in” by an employee under
most industrial awards and employment contracts, sellers
don’t see it as a liability to be paid from the sale
proceeds.
Long service leave is treated the same way in relation to
employees of less than 7 years.
It is a nasty surprise to many sellers to learn that the
“standard terms” contract that they have signed is
inconsistent with their commercial expectations.
The REIQ standard business contract provides that, on
settlement, there must be an adjustment in favour of the
buyer equal to 70% of the aggregate value of the accrued
entitlement of the transferring employees to sick leave (and
annual leave). The contract has a similar provision
concerning any accrued entitlement to long service leave for
those transferring employees with 5 years service or more.
It provides that an entitlement to long service leave is
taken to have been accruing from day-to-day on a
proportionate basis from the commencement of employment with
the seller or any predecessor. This applies even though the
employee may not be entitled to long service leave for
several years.
Given this discrepancy between commercial expectation and
contractual reality, it is important that the issues of sick
leave and long service leave adjustments are properly
“fleshed out” before a contract of sale is signed.
Depending on the agreement reached by the parties, special
conditions may be required to alter the standard terms of
the contract. It is too late to change things once the
contract has been formed.
To contact
Stephen Fleming via email please click here
Family Law
Rees R & Sydney Jones re-established its family law practice
in February 2007 due to overwhelming demand from our
existing clients and business associates.
The partners also felt that a legal firm such as ours with
its standing in the community should be offering a
comprehensive family law service.
The section is headed by partner Paula Phelan who brought 10
years of litigation experience to the role.
Paula has been greatly assisted in the last 2 years with
mentoring from specialist Brisbane family law firm Murdochs.
Rees Jones has been affiliated with Murdochs for 18 years.
With a combination of the mentoring, the attendance at
specialized seminars and the adoption of her prior
litigation skills, Paula is already a very competent
practitioner in this challenging area of law.
The rapid growth of the section in the last 2 years has
certainly reinforced our original decision.
Longstanding partners Gerald Houlihan and Roger Baker act as
backup for Paula whenever expert legal advice is needed in
relation to Trusts or Commercial considerations that may
affect a property settlement.
This newsletter will regularly include an article dealing
with Family Law matters that may be of interest to you from
an accounting perspective.
To contact Paula
Phelan via email please click here
