Support for restructurings and transfers of undertakings, including reconciliation of interests and social plan
Company acquisitions, carve-outs, mergers and relocations always have employment law consequences. Whether employment relationships transfer and which participation rights exist affects the timetable and costs of a project. We support restructurings from planning through to implementation.
The key points at a glance
Transfer of undertaking
If a business or part of a business is transferred to another owner by legal transaction, the new owner takes over the existing employment relationships under § 613a BGB. Dismissals by reason of the transfer are invalid. Collective provisions continue to apply at individual level under certain conditions.
Information and objection
Under § 613a Abs. 5 BGB, the previous and the new owner must inform the employees concerned in text form about the transfer and its consequences. Employees may object within one month of receiving proper information. If the information is defective, this deadline does not begin to run.
Reconciliation of interests and social plan
If the restructuring constitutes an operational change within the meaning of § 111 BetrVG, a reconciliation of interests on whether and how the measure is to be carried out must be attempted with the works council, and a social plan to compensate for economic disadvantages must be agreed under § 112 BetrVG. If no social plan is agreed, the conciliation board decides.
Works council structures
Restructurings may change the existence and remit of works councils. The law provides for transitional and residual mandates for this purpose, the scope of which must be clarified in each individual case.
How we proceed
We review contracts, collective bargaining coverage, works agreements and pending proceedings, and identify which obligations will transfer.
We develop a schedule that takes account of information obligations, participation rights and deadlines, and draft the information letters.
We negotiate the reconciliation of interests and social plan, support transition agreements and represent you before the conciliation board and in court proceedings.
Frequently asked questions
Does every company acquisition involve a transfer of undertaking?
No. In a pure share deal, the employer remains the same, so § 613a BGB does not apply. A transfer of undertaking requires a change in the owner of the business.
What happens if employees object to the transfer?
Their employment remains with the previous employer. If there is no opportunity for employment there, a redundancy dismissal may be considered.
Your contacts
Talk to us.
Gewürzmühlstraße 5 · 80538 Munich