Category Archive: Transfer of business

Change in shareholders does not trigger ARD-implementing legislation

The Federal Labour Court has clarified that sec. 613a of the German Civil Code, which implements the Acquired Rights Directive into German law, does not apply in case of a change of shareholders (judgment of the Federal Labour Court dated 23 March 2017, docket number 8 AZR 89/15). The parties had been in dispute about …

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Illusions don’t trigger the start of objection periods

The Higher Labour Court Düsseldorf (Landesarbeitsgericht, LAG) ruled on 14 October 2015 (docket number: 1 Sa 733/15) that a notification on a transfer of business (Betriebsübergang) is deficient and therefore does not trigger the objection period when it gives the impression of a long-term employment opportunity with the purchaser, if in fact this option is …

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Dynamic reference provisions – does European law strike again?

Depending on the industrial sector, German employment contracts sometimes refer to collective bargaining agreements (Tarifverträge). In this case the provisions of the collective bargaining agreements apply to the employees even if the employer and/or the employee are not members of the respective body. Therefore, the employees can claim eg additional benefits such as a longer …

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Several business transfers – can employees get back to a former employer by ways of objection?

 When there is a transfer of business (Betriebsübergang), the employment relationships of the affected employees transfer by law from the previous employer to the purchaser. The employees can object to the transfer of their employment relationships either vis-a-vis the previous employer or the new business owner during a one month period upon receiving sufficient information …

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