Employee Transfer Agreement Template for Germany

When transferring employees between companies in Germany, you need a comprehensive Employee Transfer Agreement that complies with strict German employment laws. This legal document ensures that employee rights are protected and all statutory obligations are met during the transfer process, whether it's part of a corporate restructuring, merger, acquisition, or business sale.

When do you need this document?

You require an Employee Transfer Agreement whenever employees are being transferred from one legal entity to another in Germany. This commonly occurs during corporate mergers and acquisitions, where employees move from the acquired company to the acquiring entity. You'll also need this agreement during internal corporate restructuring, such as when a parent company transfers employees between subsidiaries, or when spinning off business divisions into separate entities. The document is essential when selling business units or departments to third parties, ensuring employees can continue their employment under the new ownership. Additionally, you need this agreement when consolidating operations or relocating business functions between different legal entities within the same corporate group.

Key legal considerations

Your Employee Transfer Agreement must address several critical legal aspects to ensure compliance and protect all parties. The document must clearly specify the transfer date, continuation of existing employment terms, and protection of acquired rights under the current employment contract. You need to include provisions for maintaining salary levels, holiday entitlements, pension rights, and other benefits that employees have accrued. The agreement should address potential liability issues between the transferor and transferee, including responsibility for outstanding claims or employment disputes. You must also consider confidentiality and non-compete obligations, ensuring they transfer appropriately to the new employer. Data protection clauses are essential, governing how employee personal data will be handled during and after the transfer process.

Legal requirements in Germany

Under German law, your Employee Transfer Agreement must comply with §613a BGB, which automatically transfers employment relationships and protects existing working conditions during business transfers. You're required to consult with the works council (Betriebsrat) before implementing any transfer, following procedures outlined in the Betriebsverfassungsgesetz. The agreement must ensure compliance with the Bundesdatenschutzgesetz (BDSG) regarding employee data protection and consent for data transfer between entities. You need to address social security continuity under the Sozialgesetzbuch, ensuring employees don't lose benefits or coverage during the transfer. The document must also comply with the Kündigungsschutzgesetz, which provides employment protection and limits your ability to dismiss employees in connection with the transfer. If the transfer involves corporate transformations, you must also consider requirements under the Umwandlungsgesetz.