How to talk with your team when you're selling the practice

A practical guide for NZ dentists navigating staff communications, contracts, and transitions

*This is general guidance only and not legal advice—employment and contractual matters should be checked with an HR or legal professional.

Selling your dental practice is a big milestone. Exciting? Yes. Stressful? Also yes—especially when it comes to your team. Whether you employ dental assistants, receptionists, or contract dentists, oral health therapists, hygienists and other clinicians, clear communication is essential to keeping the transition smooth.

Employment law provides strong protections for workers, so preparing early and following the right steps will not only keep you compliant—it will also build trust with your team during a time of uncertainty.

Here’s a practical guide to help you communicate with your staff and handle their transition during a practice sale.

1. Start With the Golden Rule: Transparency Early, Panic Never

Your staff should never learn about a sale from a supplier, a patient, or a broker. As soon as you decide to put your practice on the market (but before it’s made public), arrange a meeting with your whole team.

What to cover in the initial meeting:

• The practice is on the market (or has been sold or is under an unconditional agreement).
• What this means for staff employment.
  
• Introduce—or give information about—the new owner.
  
• The planned timeline.
  
• What support employees can expect during the transition.
  

Keep the tone positive and reassure them that continuity of care for patients and stability for the team are priorities.

2. What Happens to Employees When a Practice is Sold?

Most dental practices are sold as a “going concern.” This typically means the new owner intends to continue operating with existing staff. However, legally:

Employees do not automatically transfer to the new owner
Under the Employment Relations Act, their current employment agreements end with you, unless the buyer chooses to take them on.

The buyer usually offers new employment agreements (aka a novation of an employment contract)
This is the norm because the team is essential for continuity.

Employees can choose whether to accept the new agreement
They cannot be forced to transfer.

You must act as a ‘good employer’ throughout the process
This includes consulting fairly, providing accurate information, and giving staff enough time to consider any new offers.

3. Paid-Out Leave, Final Pay, and Service Recognition

When an employee’s agreement with you ends, you must complete their final pay—even if they continue working for the buyer the next day.

You typically need to pay:

• Accrued annual leave
  
• Public holiday entitlements
  
• Any alternative holidays owed
  
• Final wages up to termination date
  

Long service or redundancy payments are usually not triggered, because this is not a redundancy situation—staff are being offered continued employment by the buyer.

What about service recognition?

Many buyers will recognise an employee’s existing service for things like:

• Leave accrual rates
  
• Sick leave qualification
  
• Long service acknowledgements
  

But this is negotiated, not automatic. Employees should check this in the new employment agreement.

4. New Employment Agreements: What Staff Should Expect

The incoming owner will provide new contracts before takeover day.

Typical changes might include:

• Wage or salary adjustments
  
• New policies or expectations
  
• Updated roles, responsibilities, or reporting lines
  
• New trial or probation periods (these must be handled carefully and legally)
  

Employees should receive a reasonable timeframe—usually several days at minimum—to review and get advice.

Encourage staff to ask questions and seek clarification. Being available for discussions shows respect and reinforces stability.

5. What About Contractors? (Dentists, OHTs, Hygienists, and Specialists on Contract)

Contractors are a different category from employees. Their contracts do not end automatically, but most have clauses requiring renegotiation or allowing assignment of the contract.

Typical steps:

1. Inform contractors early—ideally individually.
   
2. Review existing service agreements—many cannot be transferred without consent.
   
3. The buyer will usually offer new service contracts with updated fee splits, hours, or facility fees.
   
4. Contractors decide whether to sign or negotiate terms.
   

Make sure the handover is respectful—contractors are often key revenue generators, and continuity is in everyone’s interest.

6. How to Handle Difficult Conversations

Selling a practice can be emotional—for you and your team. Some may feel anxious or worry about job security.

Here’s how to keep conversations constructive:

• Listen first: Give team members space to express concerns.
• Be honest about what you know—and what you don’t: If a detail is still being worked out, say so.
• Avoid making promises on the buyer’s behalf: You can explain the buyer’s intentions, but future employment terms must come from the buyer directly.
• Show appreciation: Acknowledge their contribution to the practice’s success.
• Keep communication flowing: Regular updates prevent rumours and uncertainty.

7. Timeline: What Staff Can Expect Step-by-Step

Below is a typical sequence used by NZ dental practices:

Step 1 — Decide to put the practice on the market
You prepare communication for staff. Let them know your plans.

Step 2 — Sale agreement signed (not yet public)
Prepare second staff communication with new owner details.
Here's an example letter you could base your communication on.

Step 3 — Staff meeting and announcement
You explain the sale, introduce the buyer, outline timelines.

Step 4 — Buyer issues new employment or contractor agreements
Employees review and ask questions.

Step 5 — Employee decisions
Staff accept or decline the new offer.

Step 6 — Final pay from you
Accrued leave and entitlements are paid out on their last day working for you.

Step 7 — Start date with new owner
Usually the very next day—smooth transition.

8. Keep It Human: Culture Matters More Than Paperwork

Contracts and legal obligations are important, but your tone, transparency, and support will shape how your team experiences the transition.

A well-managed handover means:

• Happier staff
  
• Better patient retention
  
• A smoother start for the incoming owner
  
• A legacy you can be proud of
  

Selling your practice is the end of one chapter and the beginning of another—for you and your team. With clear communication and a respectful approach, everyone can move through this change with confidence.

**Employees can always seek guidance from Employment New Zealand on 0800 20 90 20 and on their website: https://www.employment.govt.nz/
*This is general guidance only and not legal advice—employment and contractual matters should be checked with an HR or legal professional.