BAG: Pre-transfer moves allowed before company sale

The Federal Labor Court ruled that employers can transfer employees to a transitional unit before this unit is sold (Betriebsübergang) if done properly under §106 GewO. This affects employees facing restructuring or potential job transfers during mergers.

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Ruling allows pre-sale transfers

The Federal Labor Court (BAG) decided on May 18, 2026 (6 AZN 90/26) that employers can temporarily transfer employees to a transitional unit before a company sale. This means your employer can move you to a different part of the business before a sale if they follow proper procedures. The decision affects employees facing restructuring or potential job transfers during mergers.

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Why the court decided this

The court clarified that §106 of the Trade Regulation Act (GewO) doesn’t automatically ban temporary transfers before a company sale. The law gives employers the right to assign work locations if they consider employee interests. The court had to decide because lower courts disagreed on whether such transfers were allowed before a sale.

What happened in this case

An employee was transferred to a transitional unit months before a planned company sale. The employee challenged the transfer, arguing it was just preparation for the sale. The employer claimed it was a normal business decision. The court had to determine if such transfers are allowed before a company sale becomes official.