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Thread: Ready to retire

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    Ready to retire

    I am ready to retire from my 'one man show' company. I initially expected my son to take over the business but he has informed me that moving abroad is a better option for him. I have therefore decided to close the business in no more than 3 months, less if it is possible to wind up the affairs before then.

    I have in my employ one admin clerk who started in Dec 2018. How do I go about retrenching her? Specifically, how much notice does she need and does she have to work until the day I finally lock the front door, or can I let her go as soon as I no longer require her services? Although it is not my intention to actively market the business, what happens if, whilst in the process of winding up, I get an offer to purchase the business as a going concern would the new owner be obliged to employ her?

    Advice would be much appreciated.

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    Site Caretaker Dave A's Avatar
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    Quote Originally Posted by readytoretire View Post
    I have in my employ one admin clerk who started in Dec 2018. How do I go about retrenching her? Specifically, how much notice does she need and does she have to work until the day I finally lock the front door, or can I let her go as soon as I no longer require her services?
    As a micro employer, this is pretty simple. For larger enterprises there can be lots of consultation with staff required...
    So for you:
    You will terminate employment for operational reasons.
    Practice is to pay one week's pay for each completed year of service.
    Notice will be as per the employment contract and you can let her go once you no longer require her services.

    Quote Originally Posted by readytoretire View Post
    Although it is not my intention to actively market the business, what happens if, whilst in the process of winding up, I get an offer to purchase the business as a going concern would the new owner be obliged to employ her?
    If the purchaser buys the business as a going concern, then the employment is deemed as continuous.
    However, the purchaser may retrench for operational reasons and place the cost thereof on you as the seller in the sales agreement.

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