GermanyWhat happens to my employment if the company is sold?
Your employment automatically transfers to the new owner under German law, with your existing terms preserved for at least one year — unless you formally object in writing within one month.
What the Law Says
German law protects employees when a business (or part of it) is sold or transferred — whether by merger, acquisition, or asset sale. The core rule is automatic continuation of your employment under the same conditions.
Under BGB § 613a, when a business or business unit transfers to a new owner via legal transaction (e.g., sale, merger, or spin-off), your employment contract transfers automatically — no new contract is needed, and your seniority, salary, benefits, and working conditions remain unchanged.
The new owner steps into the shoes of your former employer: they assume all rights and obligations from your existing employment relationship as of the transfer date.
Crucially, your contractual terms — especially those set by collective bargaining agreements (Tarifverträge) or works agreements (Betriebsvereinbarungen) — cannot be worsened for at least one year after the transfer. This protection only ends early if the old agreement expires or a new, equally favorable one applies.
Your employer (old or new) must inform you in writing before the transfer about the timing, reasons, and likely consequences — including any planned measures affecting staff. You then have one month to object in writing to the transfer.
Statutory TextGeht ein Betrieb oder Betriebsteil durch Rechtsgeschäft auf einen anderen Inhaber über, so tritt dieser in die Rechte und Pflichten aus den im Zeitpunkt des Übergangs bestehenden Arbeitsverhältnissen ein.
— BGB § 613a (1) — German Civil Code
Statutory TextSind diese Rechte und Pflichten durch Rechtsnormen eines Tarifvertrags oder durch eine Betriebsvereinbarung geregelt, so werden sie Inhalt des Arbeitsverhältnisses zwischen dem neuen Inhaber und dem Arbeitnehmer und dürfen nicht vor Ablauf eines Jahres nach dem Zeitpunkt des Übergangs zum Nachteil des Arbeitnehmers geändert werden.
— BGB § 613a (1) — German Civil Code
Statutory TextDer Arbeitnehmer kann dem Übergang des Arbeitsverhältnisses innerhalb eines Monats nach Zugang der Unterrichtung nach Absatz 5 schriftlich widersprechen.
— BGB § 613a (6) — German Civil Code
Statutory TextDie Kündigung des Arbeitsverhältnisses eines Arbeitnehmers durch den bisherigen Arbeitgeber oder durch den neuen Inhaber wegen des Übergangs eines Betriebs oder eines Betriebsteils ist unwirksam.
— BGB § 613a (4) — German Civil Code
What to Do
Review the written notice from your employer about the transfer — it must include timing, reasons, and consequences.
Decide whether to accept or object: if you wish to opt out, submit a clear written objection to either employer within one month of receiving the notice.
If you don’t object, your employment continues seamlessly with the new owner — no new contract is required.
Keep records of your original contract, pay slips, and the transfer notice — these support your rights if disputes arise.
If your terms are changed within one year without valid justification (e.g., new collective agreement), seek advice from a labor lawyer or works council immediately.
Sources
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Not legal advice. This article is general information based on publicly available sources, written for educational purposes. Laws change and individual situations vary. Consult a licensed attorney in your jurisdiction before acting on anything you read here. Last reviewed: June 2026.