The employment implications of the transfer of a business are regulated by sec. 613a German Civil Code (Bürgerliches Gesetzbuch – BGB). A transfer of a business takes place where an economic entity is transferred by a legal transaction and the economic entity is continued by the new owner of the business.
In order to determine whether such continuation occurs the courts have set various criteria,depending on the nature of the business being transferred. For example, where the business creates most of its value from the operation of machinery (e.g. an automobile plant), the transfer of those machines is normally the … Continue Reading