How do I confirm a language school’s teachers are not all part-time contractors?
Ask for each teacher’s agreement, hours worked and how they are paid, then compare these with payroll and contractor invoices. Look for who controls the schedule, materials and student contact. If most teachers are part-time contractors, ask your lawyer and accountant what that arrangement means for you as the new owner.
Start with a staff list that shows every teacher, how they are engaged, how many hours they usually teach and when they started. Ask how many are the school’s regular core and how many are occasional. Match the list against payroll records and supplier invoices, so you can see whether the paperwork matches the description you were given.
Then look at how the work is actually done. Ask who sets the timetable, who supplies the curriculum and materials, whether teachers can work for competing schools, and who owns the student relationships. Working arrangements that look more like employment than the contract suggests are worth raising with your lawyer before closing, because they can follow the business to you.
Finally, consider continuity. Ask how teachers were found, how long they typically stay, and whether the strongest ones intend to remain under new ownership. A short conversation with a few of them, if the seller permits, can tell you more than the contracts. Also ask who covers a sick teacher, because thin cover shows up quickly in a school with few people.
Key takeaways
- Match the teacher list against payroll and contractor invoices to confirm how each person is engaged.
- Ask who controls schedules, materials and student relationships, and take what you learn to your lawyer.
- Speak with the core teachers, if allowed, about whether they plan to stay.
Related reading
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Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
- 02Business Development Bank of CanadaGovernmentWhat are the steps to buying a business?
- 03Business Development Bank of CanadaGovernmentHow to reduce employee turnover
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