Employment Update, Germany - February 2007

20 February 2007

Dr Martin Schimke, Eleni Konstantinou

New Legislation

Bundesarbeitsgericht (Federal Labour Court): Judgment of 13. July 2006 - 8 AZR 303/05


  1. Employees are entitled to object to the transfer of their employment (from transferor to transferee) within one month of receiving notification of the proposed transfer.

  2. The time period of one month starts to run for each employee after the respective employee has been notified of the proposed transfer.

  3. If an employee exercises his right to object, his employment relationship will remain with the transferor.

  4. The notification of the proposed transfer must include the following information:


    • The date or planned date of the transfer of business;

    • The grounds for the transfer (e.g. sales agreement, lease agreement, restructuring). It must additionally contain keywords explaining the entrepreneurial reasons for the transfer as this can affect an employee’s position in the event of his objection;

    • The legal, economic and social consequences of the transfer of business for employees;

    • The intended action to be taken in relation to employees;


  1. If an employee exercises the right to object to the transfer after a transfer has taken place, the objection will be retroactively applied to the time of the transfer.

  2. If an employee exercises his right to object, his employment relationship will remain with the transferor.