What happens to employees’ contracts during a transfer?
Employees’ contracts transfer automatically with all rights and obligations intact to the new employer, including salary, seniority, and benefits .
Can employees opt out of a transfer?
Yes; employees have the right to object to the transfer if they wish. If they do, their contract ends automatically with no further obligation from the old employer .
Can an employee’s pay be changed after a transfer?
No; the employee’s pay and terms must remain the same after the transfer unless the new employer and employee mutually agree to changes .
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What are the employer’s obligations to inform employees about the transfer?
Employers must inform employees and consult with the works council about the transfer before the transfer happens .
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Can an employee be dismissed because of a transfer?
No; employees cannot be dismissed due to the transfer itself. Such dismissals are automatically void under the law .
What happens if the transfer involves more than one employer?
The transfer process applies equally to all employers involved; employees in all related businesses must have their contracts honored by the new owners .
What about pensions during a transfer?
The pension scheme must be continued by the new employer unless the buyer has its own equivalent scheme, in which case employees may transition to that scheme .
How should employers prepare for a transfer of employees?
Employers should review employment contracts, consult with the works council, and inform affected employees about how the transfer will affect their terms, including pensions and benefits .
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Are employees entitled to compensation if they object to a transfer?
If employees opt out of the transfer, they have no claim for compensation, but they may be entitled to other benefits (e.g., severance pay) depending on the situation .
Is employee consent needed for the transfer?
No; employees are automatically transferred under the law, but they have a right to object and refuse the transfer .
