Germany: the federal labour court recognised the preservation of the company’s pension scheme in case of transfers

In a ruling rendered on November 13, 2007, the federal labour court gave satisfaction to an employee whose firm was bought off. It gave him the right to preserve the level of his company pension scheme (Betriebsrente) negotiated with his first employer, independently from the company agreement negotiated with the new employer. (Ref. 070955)
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For the federal labour court, the subject of the “Betriebsrente”, the company private pension scheme which employers can propose to their employees (mandatory in some sectors), does not entirely depend on the rules set by the collective or company agreements. In this case, an employee was opposed to his company’s buyer who wanted that the level of the company pension scheme initially set remained. Indeed, before the company’s takeover, the employee contributed to a company private pension schem

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