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Explanation during company sale

The text is about a question in labor law. A small to medium-sized company is to be sold to a new owner. The current (still) owner is now presenting a declaration to his employees for signature, with the following content:

"I declare myself willing to continue providing my services to the new owner even after a change in ownership. I will also sign a new employment contract, which will be presented to me in a timely manner, if it contains the same conditions as my existing employment contract. The precondition is the full recognition of my length of service, the same salary structure, the same number of vacation days, the same working hours, and the existing overtime regulations."

At first glance, this may seem like protection for the employees. Are such declarations common in legal practice? Could there be disadvantages for employees by signing this declaration? If so, what are they? Is it advisable to sign such a declaration as an employee?

Jan Wilking

Dear inquirer,

I am happy to answer your inquiry taking into account the facts you have presented and your commitment as follows:

This is a unilateral obligation of the employee. The declaration therefore primarily serves the interests of the old and new owner.

Employees are regularly sufficiently protected in the event of a business transfer by § 613a of the German Civil Code, which states that the new owner fully assumes the rights and obligations from the existing employment relationships at the time of the transfer. It is common practice for new employment contracts to be drawn up and presented for signature to the affected employees in the context of a business transfer. However, since the transfer itself does not lead to any changes in the contract content, this is not necessary.

One disadvantage of this declaration could be that the employee may forfeit his right to object under § 613a paragraph 6 of the German Civil Code.

From a legal point of view, there is therefore no reason for the employee to sign this declaration.

I hope this provides you with a helpful initial orientation. If you have any uncertainties, please use the free follow-up function.

Please bear in mind that I cannot provide a definitive advice without knowledge of all circumstances within the scope of an initial consultation. If you wish to have a final assessment of the situation, I recommend contacting a lawyer and discussing the situation with them after examining all documents.

Best regards

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Jan Wilking

Jan Wilking

Oldenburg, Vorpommern

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