Can I be liable for constructive dismissal if I change terms right after taking over?

Yes, this is a real risk, and it catches new owners off guard because they think of themselves as starting fresh rather than as continuing an existing employment relationship. If you've hired an employee as part of a going-concern business sale, you generally step into the employment relationship as it already existed, including its essential terms. Making a significant unilateral change shortly after taking over — a substantial pay cut, a demotion, a major change in duties or reporting structure, or a big reduction in hours — can amount to constructive dismissal at common law, the same as it could for any employer, regardless of how recently you took ownership.

Being new to owning the business doesn't create a special exception allowing you to reset terms unilaterally. If changes are genuinely necessary, getting the employee's informed agreement, ideally supported by fresh consideration, is a safer path than simply imposing changes and assuming continued attendance means acceptance.

Get legal advice before making material changes to any continuing employee's role, pay, or conditions in the period right after closing. A Treadstone business lawyer can help you assess which changes carry real risk.