Overview

The outsourcing of jobs to service companies touches on an issue that has not only been addressed in countless works of literature, but has also prompted the German Supreme Labour Court to revise previous decisions on several occasions in recent decades. At the heart of this issue are the provisions of Section 613a of the German Civil Code (BGB), which regulate the legal consequences of a transfer of business. Section 613a BGB obliges the acquirer of a business to enter into the existing employment relationships as the new employer. This can have lasting binding consequences for both the seller and the acquirer of the business. However, there are also ways of circumventing these consequences and changing the working conditions of the transferred employees through a transfer of business in favour of the employer in order to achieve business objectives. This paper therefore aims not only to address the legal aspects of the outsourcing of jobs, but also to highlight the business reasons for doing so.

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