What is a business transfer (Betriebsübergang)? A business transfer within the meaning of § 613a BGB occurs when a business (or part of a business) is transferred to another owner by way of legal transaction (sale). In this case the new owner enters into the rights and duties of the employment relationships existing at the time of transfer. Operational dismissals as a result of, or because of, the business transfer are not permissible.
When does a business transfer occur?
When a business transfer occurs is not unambiguously defined in the law. It must therefore always be examined in the individual case, weighing the following criteria: type of business concerned, transfer of tangible assets, takeover of the workforce, transfer of customer base, similarity of activities carried out and possible interruption of activity.
Your right of objection
Every affected employee has a right to be informed of the transfer in good time and a right of objection (Widerspruchsrecht). The objection must be filed in writing within one month of receipt of the information letter. After an objection, the employment relationship continues with the previous employer — with the risk, however, that they may immediately issue operational dismissals.