In Germany, § 613a of the Bürgerliches Gesetzbuch (BGB), or Civil Code, plays a crucial role in protecting employees’ rights during a business transfer. This provision ensures that employees are not disadvantaged when their employer’s business is transferred to another entity. This article delves into the specifics of § 613a BGB, its implications for both employers and employees, and how WW+KN, a Baker Tilly Company, can assist in navigating the complexities of business transfers.
What is § 613a BGB?
§ 613a BGB deals with the legal consequences for employees when a business or a part of a business is transferred to a new owner. The main provisions include:
1. Continuation of Employment Contracts: The employment relationships of the employees affected by the transfer automatically continue with the new owner. This means that all existing employment contracts remain valid, and the new employer inherits all rights and obligations.
Reference: § 613a Abs. 1 BGB
2. Protection Against Dismissal: Employees are protected against dismissal solely because of the transfer. Any termination of employment resulting from the transfer is deemed invalid unless there are compelling economic, technical, or organizational reasons that necessitate changes in the workforce.
Reference: § 613a Abs. 4 BGB
3. Information and Consultation Rights: Both the previous and the new employer are required to inform employees about the transfer in writing. This includes details about the timing of the transfer, the reasons for the transfer, and the legal, economic, and social implications for the employees.
Reference: § 613a Abs. 5 BGB
4. Right to Object: Employees have the right to object to the transfer of their employment contract to the new owner. If an employee objects, their employment relationship with the original employer continues, if feasible.
Reference: § 613a Abs. 6 BGB
Implications for Employers
1. Transfer of Employment Contracts
The new employer must honor all existing employment contracts. This includes maintaining the same terms and conditions of employment, such as salary, working hours, and benefits. The new employer also assumes responsibility for any outstanding liabilities, such as unpaid wages or accrued vacation days.
2. Compliance with Information Obligations
Both the old and new employers must provide detailed information to employees well in advance of the transfer. Failure to comply with these obligations can lead to legal disputes and potential liabilities.
3. Managing Objections
Employers need to manage situations where employees object to the transfer. This may involve negotiating with employees or addressing any concerns that lead to objections. Employers should prepare for the possibility of maintaining employment relationships with objecting employees.
Implications for Employees
1. Job Security
Employees benefit from job security as their employment contracts continue with the new employer under the same terms and conditions. This protection ensures that employees are not unfairly dismissed due to the business transfer.
2. Right to Information
Employees have the right to be fully informed about the transfer and its implications. This transparency helps employees understand how the transfer will affect their employment and allows them to make informed decisions.
3. Right to Object
Employees can object to the transfer of their employment contract. This right allows employees to remain with the original employer if they have valid concerns about the new owner or the terms of employment under the new owner.
How WW+KN Can Help
At WW+KN, a Baker Tilly Company, we provide comprehensive support for both employers and employees involved in a business transfer. Our services include:
- Legal Advice and Compliance: Ensuring that all legal obligations under § 613a BGB are met, including the continuation of employment contracts and compliance with information and consultation requirements.
- Employee Communication: Assisting in drafting clear and comprehensive communications to employees about the transfer, its implications, and their rights.
- Dispute Resolution: Providing mediation and dispute resolution services to address any conflicts that arise from the transfer, including objections from employees.
- Strategic Planning: Advising on the strategic aspects of business transfers to ensure smooth transitions and minimize disruptions to operations.
Contact Us
Navigating the complexities of § 613a BGB during a business transfer requires expertise and careful planning. To explore how WW+KN can support your company in managing these challenges effectively, contact us at info@payrollgermany.de. Let us help you ensure compliance with German regulations and facilitate a smooth business transfer.
By leveraging the expertise of WW+KN and Baker Tilly, you can ensure that your company’s business transfers are managed efficiently and compliantly, protecting the rights of employees and ensuring business continuity.