Overview

The way German law interprets the EU Acquired Rights Directive (ARD) in relation to transfers of undertakings can sometimes appear to differ from other European countries. This is so even though German law is based on the same European directive. In addition, the German Federal Labour Court has referred more questions relating to the application of the ARD than other national courts. As a result, the interpretation of German law in this area is based on a significant number of individual case by case decisions of the German Federal Labour Court.

Under German law, prior to a transfer of undertaking each affected employee must be informed in writing about the transfer, its reasons, the background, the social and legal consequences for the affected employees and any further planned measures by the transferee.

Unfortunately, German law is not completely clear in relation to this duty to provide written information and there are many pitfalls, including providing wrong or incomplete information.

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