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Chapter 24 Business Transfers

  • Jens KirchnerEmail author
  • Michael Magotsch
Chapter

Abstract

Section 613a of the Civil Code (Bürgerliches Gesetzbuch, BGB) governs employers’ and employees’ rights and duties in the case of business transfers (Betriebsübergang). In practice, business transfers are also known as transfer of business or transfer of undertaking. Furthermore, outsourcing measures often qualify as business transfers. The spirit and purpose of sec. 613a—which mainly implements the EU Transfer of Undertakings Directive 2001/23/EC—is to maintain the employee’s social status quo and to grant comprehensive employee protection. In particular, the employee must not suffer any disadvantage as a result of the business transfer. The function and continuity of business operations must be protected alongside the preservation of the employee’s job position. Moreover, employees have a right to comprehensive information about the planned transfer of the business as well as a right to object to the transfer of their employment relationship. Thus, sec. 613a BGB is designed to achieve the following three key objectives:
  • The business transfer should not affect the continued existence of the employment relationships of individual employees and therefore serves as an additional system of protection against wrongful dismissals;

  • Ensuring the continued existence of the works council in the transferred business;

  • The acquiring party (transferee) assumes all rights and duties of the seller (transferor) arising from the employment relationships existing at the time of the business transfer.

Copyright information

© Springer-Verlag GmbH Germany 2018

Authors and Affiliations

  1. 1.DLA Piper, EmploymentFrankfurtGermany
  2. 2.FrankfurtGermany

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