Staff retention in an accounting-practice acquisition starts with credible information, not a retention bonus announced in isolation. Employees need to understand who will employ them, what is changing, what is not yet decided and when they will receive firm answers. The buyer also needs a plan for keeping client knowledge and delivery capacity through the first major lodgement cycle.

The sequence must respect transaction confidentiality, privacy and employment law. Before promising continuity—or assuming that staff will transfer—the buyer should have employment lawyers confirm the transaction structure, applicable instruments, service recognition, consultation duties and the content of each offer or communication.

Establish the employment position before the announcement

A share purchase and an asset purchase can produce different employment outcomes. In a share purchase, the employing company may remain the same legal entity. An asset purchase may involve termination by the seller and offers from the buyer, but the statutory transfer-of-business rules depend on the facts.

The Fair Work Ombudsman says a transfer of business involves a worker starting with the new employer within three months, performing the same or substantially the same work, and a relevant connection between the employers. A sale of business assets can provide that connection (Fair Work Ombudsman). Buyers should not reduce that test to “the staff come with the business”.

Ask employment advisers to document, for each person:

  • the current employer, employment type, role, location and ordinary hours;
  • the applicable award, enterprise agreement or other industrial instrument;
  • salary, allowances, incentives, flexibility arrangements and contractual benefits;
  • accrued annual, personal and long-service leave, plus any disputed balances;
  • whether prior service will be recognised for each relevant entitlement;
  • the proposed offer, commencement date, reporting line and probation position; and
  • any consultation, notice, redundancy, information-statement or record-transfer steps.

Service recognition is not identical for every entitlement. Fair Work guidance says most service must be recognised in a qualifying transfer, while special rules can apply to redundancy, annual leave, long-service leave, unfair dismissal and notice (Fair Work Ombudsman). The allocation of employee liabilities in the sale agreement does not, by itself, determine an employee’s statutory rights. Obtain transaction-specific advice before describing an outcome to staff.

Plan who learns what, and when

An uncontrolled leak can unsettle employees and clients, but excessive secrecy can leave the team learning about its future from a rumour. Build a communication sequence before signing or completion, with named owners and approved factual answers.

A practical sequence may include:

  1. a tightly limited deal team during due diligence;
  2. aligned seller-and-buyer briefing notes once the transaction is sufficiently certain;
  3. a coordinated team announcement, followed promptly by individual meetings;
  4. written confirmation of offers, entitlements and proposed changes; and
  5. scheduled updates even when the answer is “still being assessed”.

Due diligence does not justify unrestricted access to employee records. OAIC guidance says prospective purchasers can generally review key employment information and aggregated entitlement data, while de-identification and controlled data-room access should be considered where possible (OAIC). Agree which party may see named information, for what purpose, and what happens to copied information if the transaction does not proceed.

The first announcement should answer immediate human questions: Who owns the practice? Is completion conditional? Who is the employer now and after completion? Are roles, pay, hours, location, leave and benefits changing? Who can answer a confidential question? Avoid promises about jobs, titles, remuneration or systems that have not been authorised or legally checked.

Treat consultation as more than an announcement

Communication tells employees what is happening; consultation invites and considers their views where required. Awards and enterprise agreements can contain consultation clauses for major workplace change or changes to regular rosters and ordinary hours. Fair Work’s guide explains that affected employees and their representatives may need information about the change and its likely effects, an opportunity to give views, and prompt consideration of those views (Fair Work Ombudsman). Advisers should identify the precise obligations before the buyer fixes implementation dates.

Poorly planned, communicated or supported organisational change can also be a psychosocial hazard. Safe Work Australia recommends clear and timely information, worker consultation, practical support and allowance for learning new tasks or systems (Safe Work Australia). The buyer should assess workload and role clarity, not simply the tone of the announcement.

Map retention risk and critical knowledge

Do not label every long-serving employee “key”. Map dependence by task and client relationship. For each material service line, identify who knows the client history, controls deadlines, reviews work, operates specialised software, manages portal access and handles exceptions. Then test whether that knowledge is documented and whether another person can perform the task.

Useful retention evidence includes:

  • staff tenure, qualifications, capacity and recent turnover;
  • current responsibilities compared with job descriptions;
  • client and workflow ownership by month and lodgement date;
  • leave booked during the transition and known workload bottlenecks;
  • training records, review protocols and succession coverage;
  • restrictive covenants or bonus terms for legal review; and
  • employee concerns gathered through lawful, appropriately timed discussions.

APES 110 identifies confidentiality, professional competence and due care among the profession’s fundamental principles (APESB). This makes knowledge transfer more than a contact-list exercise. Review staff need access to prior judgements, open issues, engagement scope, quality controls and escalation paths without allowing confidential client material to circulate beyond authorised systems and people.

Retention incentives may help where a role is genuinely critical, but define the purpose, period, payment trigger and treatment of leave or termination. A payment cannot repair an unclear role, unmanageable workload or loss of professional autonomy. Model the acquisition both with and without each critical employee, and establish a recruitment, contractor or seller-support contingency.

Use a measurable first-month plan

Track actions rather than employee sentiment alone. A practical first 30 days could measure:

  • every transferring or continuing employee has received correct written information;
  • individual meetings are complete and questions have named owners and due dates;
  • employment terms, recognised service and leave balances have been reconciled;
  • critical client and deadline ownership has a primary and backup person;
  • access to payroll, practice software and client systems follows approved permissions;
  • workload is reviewed weekly against upcoming lodgements and booked leave;
  • key procedures and unresolved client matters are being documented; and
  • pulse checks, departures and retention discussions are reported without disguising issues.

Set a weekly transition meeting with the buyer, an operational lead and the seller where the handover requires it. Keep an issue register separating employment questions, system access, client delivery and knowledge gaps. Escalate legal or workplace-relations matters to advisers rather than improvising answers in team meetings.

Questions for the buyer and advisers

  • Does the transaction structure produce a statutory transfer of business for each employee?
  • Which employment instruments, service periods and accrued entitlements continue or require payment?
  • What can be communicated before signing, before completion and after completion?
  • What consultation duties apply to planned changes in roles, hours, location or technology?
  • Which staff hold non-duplicated client, workflow or technical knowledge?
  • Are retention arrangements lawful, documented, affordable and linked to a clear transition need?
  • Can the practice complete its next peak period if one critical employee leaves?
  • How will privacy, professional confidentiality and system access be controlled during handover?

Sources

Disclaimer

This article provides general information only. It does not constitute legal, tax, accounting, financial, credit, valuation or other professional advice. Circumstances differ. Obtain advice from appropriately qualified advisers before acting or entering a transaction.