In the transfer of a business, pursuant to sec. 613a (5) German Civil Code, the business transferor or the transferee has to notify the identity of the business transferee. The one-month time limit of the right to object to the transfer of the employment relationship to the transferee's business (sec. 613a (6) first sentence German Civil Code) does not commence if the legal requirements of the notification are not met.
In January 2005, the defendant company notified the claimant employee of its intention to establish a new German limited company, to which the claimant's employment relationship would be transferred with all rights and obligations as of 1 February 2005, or at the latest as of 1 March 2005. The claimant objected to the transfer and gave notice of the lack of comprehensive information.
The Federal Labour Court found for the claimant. It held that the notice of business transfer lacked information about the identity of the transferee business and thus was not compliant with the law. The term "new German limited company" used by the defendant did not meet this requirement to identify the new employer. The one-month time limit for objection was held not to have started for the claimant. His objection against the transfer of his employment relationship to the German Limited Company stated in a letter dated 15 June 2005 was therefore decided not to have been late.