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ARTICLE · 13 MAY 2022

Leasing Employees Who Object To Business Transfers

A ruling from the German Federal Labour Court has confirmed that on the transfer of a business, employees who object to their employment relationship being transferred to the new owner can be offered temporary employment instead.

GermanyEmployment and HR

A ruling from the German Federal Labour Court has confirmed that on the transfer of a business, employees who object to their employment relationship being transferred to the new owner can be offered temporary employment instead.

In the event of a transfer of business, one of the important issues is the treatment of so-called 'objectors' in the workforce and the associated costs of separation. Now, the German Federal Labour Court (the 'BAG') has provided an option that eliminates a key risk of objection.

In a transfers of a business in Germany, the employment relationships are automatically transferred from the seller of the business to the acquirer of the business. The employee can prevent this by lodging an objection, but the objector can no longer be employed in the same job by the seller, because the job is now with the acquirer. One solution to this muddled situation has been to offer the employee employment with the acquirer. If the employee refused this, he

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