How death of an employer terminate a business.

[TOZZIBLINKZ]

The aspect of death is considered as an unforeseen occurrence , death might choose to lay it cold hands on a particular person without the person consent . Sometimes business owners or employer here dies this is actually a devastating occurrence to the business environment especially if it is a business with well known high rate of reputation . Sometimes or in most cases death of a business employer could lead to termination of a business organisation this happens if the employer do not have a second in command.

In most cases employees employment will be terminated , and sometimes the employees could still be returned this all depend on how the business environment is runned . Must employer do have someone or a next of kin who takes over from them when the kick the bucket and this person might choose to retain employees re brand the business , rename the business , and change some certain business strategies . Another popular cases employees might not be returned they might be compensated and released off their work as an employee to go search for jobs elsewhere. thereby increasing the rate of unemployment among the people or citizens occupying a particular territory.

 

[Kendy]

The death of an employer can terminate a business and this is very common in my Country. In a case where a business owner has children who are also engaged with their jobs and pursuing the career of their interest, when the owner dies, the business dies as well or it would be sold out to any interested entrepreneur. This is the more reason some business owners always introduce their children most especially at the tender age into business and make them enjoy the flow of the business so they could continue with the business line when they are no more strong or capable to run the business.

Sole proprietorship business too faces this ordeal whereby once the business owner dies, it clearly marks the end of the business and I think this is not equitable because it further dwindles and makes the economy harder which owes to the reality that those who worked as employees would have no other option than going back to the streets with no jobs. This goes out to all business owners, that they should try as much to always transfer business even to loyal workers or employees most especially in cases where their blood line is not interested in the business sustainability.

 

[Alexandoy]

In a small company that can really happen that when the business owner would die and the children or relatives do not care about the business then it will cause a termination of everything that are connected to the business. The assets will be distributed to the heirs and the workers will cease to be employees. However, under the labor law of our country the workers should be paid their separation pay and the unused sick leaves and vacation leaves plus some other benefits. If the family of the deceased owners are humane and kind to people then the workers will have more aside from the legal benefits due them.

One case is our relative who owns a big ketchup factory. He is the sole owner although the registration of his business is a corporation (his family members are the major stockholders). He is actually the younger brother of my paternal grandmother. When he died the business was sold and the proceeds were divided among the heirs. As for the workers, the buyer retained more than half of the workers.