Support for restructurings, including their employment law consequences
When a business is reorganised – through a spin-off, the merger of divisions or the sale of part of the business – the workforce is almost always affected too. We combine corporate structuring with its implementation under employment law.
The key points at a glance
Transfer of undertaking (§ 613a BGB)
Where a business or part of a business passes to a new owner by legal transaction, the new owner assumes the existing employment relationships. A dismissal on account of the transfer is invalid.
Information and objection
The employees concerned must be comprehensively informed in text form before the transfer. They may object to the transfer within one month of receiving proper notification. If the notification is defective, this period does not begin to run.
Involvement of the works council
If the restructuring amounts to an operational change, such as the division or merger of establishments, a reconciliation of interests and social plan must be negotiated (§§ 111 ff. BetrVG). Any existing economic committee must be informed in good time.
Collective agreements and works agreements
Collective arrangements frequently continue to apply after a transfer – in some cases collectively, in others as part of the individual employment relationships. Which arrangements continue to apply is decisive for planning and costs.
How we proceed
We examine the planned corporate measure and identify which establishments, employment relationships and collective agreements are affected.
We set the sequence of shareholder resolutions, information of the workforce and negotiations with the works council – in coordination with your tax adviser.
We draft agreements and notification letters, conduct the negotiations with the works council and support the implementation.
Frequently asked questions
Do employees have to consent to a restructuring?
Consent is not required. In the case of a transfer of undertaking, however, employees have a right to object. Their employment relationship then remains with the previous employer.
Do working conditions change as a result of the transfer?
In principle, no. The new owner takes over the employment relationships with all rights and obligations. Changes to the employees’ detriment are possible only within narrow limits and subject to special time limits.
Your contact
Talk to us.
Gewürzmühlstraße 5 · 80538 Munich