(1) If a business or part of a business is transferred to another owner by legal transaction, then the latter succeeds to the rights and duties under the employment relationships existing at the time of transfer. If these rights and duties are governed by the legal provisions of a collective agreement or by a works agreement, then they become part of the employment relationship between the new owner and the employee and may not be changed to the disadvantage of the employee before the end of one year following the date of transfer. Sentence 2 does not apply if the rights and duties given with the new owner are governed by the legal provisions of another collective agreement or by another works agreement. Prior to expiry of the period of time under sentence 2, the rights and duties may be changed if the collective agreement or the works agreement no longer applies or, where neither party is under the collective bargaining coverage of the scope of applicability of another collective agreement, the application of that collective agreement is agreed between the new owner and the employee.
(2) The previous employer is jointly and severally liable with the new owner for duties under subsection (1) to the extent that they arose prior to the date of transfer and are due before the end of one year following that date. If such duties are due after the date of transfer, however, the previous employer is only liable for them in that scope that corresponds to the part of their assessment period that ended on the date of transfer.
(3) Subsection (2) does not apply if a legal person or a commercial partnership ceases to exist by way of conversion.
(4) The termination of the employment relationship of an employee by the previous employer or by the new owner due to transfer of a business or a part of a business is ineffective. The right to terminate the employment relationship for other reasons remains unaffected.
(5) The previous employer or the new owner is to notify employees affected by a transfer in text form prior to transfer:
1. of the date or planned date of transfer,
2. of the reason for the transfer,
3. of the legal, economic and social consequences of the transfer for the employees, and
4. of the measures that are being considered with regard to employees.
(6) The employee may object in writing to the transfer of the employment relationship within one month following receipt of notification under subsection (5). The objection may be declared to the previous employer or to the new owner.