§ 125 InsO (works agreement with a named list)

§ 125 InsO applies to an operational change within the meaning of § 111 BetrVG (e.g. a headcount reduction as part of restructuring or a break-up). If the administrator and works council agree on a reconciliation of interests (Interessenausgleich) with a named list of employees to be dismissed attached as an annex, the law presumes that dismissing those named employees is driven by urgent operational needs (§ 125(1) sentence 1 no. 1 InsO).

In addition, the social selection of the listed employees is reviewed only for gross error — the labour court does not substitute its own assessment for the administrator's, it only objects if a selection criterion was disregarded entirely or was obviously inadequately weighed (§ 125(1) sentence 1 no. 2 InsO). That materially lowers litigation risk for the administrator — and for a buyer who takes over or co-negotiates the named list as part of the deal — compared with individual dismissals without a reconciliation of interests.

For buyers, a named list negotiated between administrator and works council before signing is a valuable signal: the headcount adjustment is already legally secured, instead of carrying over to the new operation as an open litigation risk after closing. Where the remaining workforce transfers as part of a business transfer (§ 613a BGB), the named list only concerns the employees who already left beforehand — for them, a transfer company (Transfergesellschaft) is often the next step.