GRP Rainer LLP

Even Change of the Company Owner Should Be Considered as Company Transfer

According to the German Civil Code (BGB), at the moment of the company transfer the new company owner takes over the rights and obligations that result from the existing labour relations.


North Rhine-Westphalia, Germany -- (SBWIRE) -- 12/11/2012 -- GRP Rainer Lawyers and Tax Advisors in Cologne, Berlin, Bonn, Dusseldorf, Frankfurt, Hamburg, Munich, Stuttgart and London conclude: It is permissible for the transferee of a business to take over two thirds of the personnel soon after their resignation by own requests without bypassing the German Civil Code, when the transferee has made no concrete promises regarding further employment of individual workers. This will guarantee uninterrupted continuance for the existing employer. For the company transfer the change of the company owner will be therefore required.

However, according to the Federal Labor Court’s (BAG) decision, this provision will not apply, when there is no agreement with or a biding promise of the company transferee.

By decision of 27/09/2012 (ref. 8 AZR 826/11) the BAG has explained in details the principles for the company transfer. The transferee of the resources should be able to use them effectively. The transfer of the possibility of use of the resources is essential in case of transition of a company burdened with working resources. The conclusion of a cooperation agreement between the company transferee and the previous owner does not necessarily represent such a business owner change, when the former company owner has effectively stopped using the company resources.

A lawyer active in the field of labor law represents your interests competently and consequently in the labor court in case of a reprimand or termination of a labor contract. Whether there is a conclusion of a contract, a reprimand or dismissal in question, negotiation skills and perseverance are as important in the labor law as its detailed knowledge. The correct choice of the process strategy is decisive in a process related to protection from dismissal.

In addition to representing your interests in the event of your dismissal, a labor lawyer will be as much useful in case of drafting of an employment contract, as well as in such matters as holidays, salary, bonuses, employee certification (assessment), business transition, temporary employment, flexible work schedules, the law regarding company internal procedures and collective agreement law.

About GRP Rainer LLP
GRP Rainer LLP ( is an international firm of lawyers and tax advisors who are specialists in commercial law. The firm counsels commercial and industrial companies and corporations, as well as associations, small- and mid-sized businesses, self-employed freelancers and private individuals worldwide from offices in Cologne, Berlin, Bonn, Düsseldorf, Frankfurt, Hamburg, Munich, and Stuttgart, Germany and London UK.

Michael Rainer
Lawyer, Managing Partner

GRP Rainer LLP
Hohenzollernring 21-23
50672 Cologne

Phone: +49 221-27 22 75-0
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