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Apprentices in business succession: secure the training contract and trainer

Mag. Bernhard Brandauer, Rechtsanwalt

How to secure apprenticeships, training contracts, trainers and the handover date during an Austrian business succession under AVRAG and BAG.

Apprentices must not disappear into an ordinary staff list during a business succession. The training contract generally continues when a business or part of a business transfers to another owner. At the same time, the new training employer must make sure that training, the trainer, vocational school and records work from the handover date.

Section 3 AVRAG provides for the new owner to enter existing employment relationships. In decision 9 ObA 193/98t the Austrian Supreme Court confirmed that this automatic entry can also cover an existing apprenticeship if the previous trainer is lost in the transfer. This protects continuity of training, but it does not replace a practical handover.

This article focuses on apprentices in the business. It distinguishes an unchanged employer in a share deal from an employer change in a transfer of business and explains what seller and successor should clarify together. The overview on a family business transfer provides the wider context for employees, contracts and obligations.

Training check

What must be clarified first for apprentices?

This short assessment separates the transfer model, the trainer and missing training records. You can send the result to the firm together with the current apprentice list.

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01 Question 1

What changes on the handover date?

All paths at a glance

Overview of all answers.

01

The training review starts with the correct transfer model.

First classify a share deal, a transfer of business or a management change. Only then can you identify the employer and training employer and determine the necessary communication and filings.

02

A trainer change must not create a gap in training.

Name a suitable person without unnecessary delay and record qualification, occupations, availability and the training plan. Check the registration position with the competent apprenticeship office.

03

An undocumented trainer role leaves the training organisation exposed.

Record the training employer, trainer, occupation, qualifications and actual supervision time. Section 9 BAG requires proper training, so the documentation should exist before a review becomes necessary.

04

The apprentice handover is organisationally prepared.

Confirm contacts, school dates, training objectives and the first review meeting. Explain to the apprentice who will decide and supervise from the handover date.

05

Open training records need a binding follow-up.

List each missing document, the responsible person and the completion date. Include training records, school dates, examination planning, leave and the current tasks in the occupation.

06

Different information should be reconciled before the handover.

Arrange a meeting with apprentice, previous trainer and successor. Compare the contract, actual tasks, training progress and next school or examination dates and confirm the result in writing.

Distinguish a share deal from a transfer of business

In a share deal the GmbH generally remains the same employer. Shareholders or management may change while the training contract continues with the company. Responsibilities, trainers and internal approvals still need updating. A change in the commercial register does not replace clear information inside the business.

In an asset deal or another transfer of a business or part of a business a new owner may become the employer. Section 3 AVRAG applies to the transfer of the business. The successor generally enters existing employment relationships. The training contract is therefore not simply rewritten because the business name or owning family changes.

The distinction must be clear before the apprentice meeting. For every apprentice the handover file should identify the current contracting party, the future responsible person and whether the training site remains unchanged. If the structure is uncertain, obtain legal clarification before communicating with the school or apprenticeship office.

Hand over the contract and training progress completely

The training contract is only the starting point. The succession plan should record the occupation, start date, agreed training period, vocational school, training content completed, examination dates and open learning goals. Absences, leave, ongoing discussions and specific support needs should also be organised.

The records must match the actual work in the business. Section 9 BAG requires the training employer to assign only tasks compatible with the training. The succession should not become a reason to give an apprentice permanent tasks that neither fit the occupation nor support the training.

A four-column handover list is practical: document, current position, open decision and responsible person. The documents guide for the first succession consultation provides the general structure. Apprentice records are added as a separate training and personnel section.

Name the trainer early and make the role workable

Section 3 BAG allows the training employer to appoint suitable trainers. The person must meet the statutory requirements and be able to work in the training business. A name in an organisation chart is not enough if there is no time for instruction, review and conversations.

Section 9 BAG requires the training employer to ensure training. Important duties also apply to the trainer. The trainer must have the necessary time and a reasonable opportunity for professional development related to training. The successor therefore needs to secure not only the person but also time and decision-making authority.

If the former trainer leaves, the replacement should be arranged before the handover date. Decision 9 ObA 193/98t shows that the loss of a trainer during a business transfer does not automatically end an existing apprenticeship. It does create an immediate organisational task. Section 14 BAG must be considered separately if eligibility or a suitable trainer is missing.

Coordinate training and the apprenticeship office

The handover does not end when the purchase or transfer agreement is signed. Training plans, school communication, examination registration, time records and regular meetings must reach the new responsible person. If the legal employer changes, check which filings and records are required by the competent apprenticeship office.

Section 8 BAG contains requirements for proper training and ratios. A change in the business must not leave supervision insufficient in practice. The number of apprentices, qualified staff and assignment to occupations should therefore be part of the succession review.

The successor should schedule a first training meeting after the handover date. Discuss objectives, work allocation, contacts, school and open questions. The checklist for the first succession consultation helps organise the documents. The general transfer article remains the wider reference for the business handover.

Inform apprentices clearly and involve them

On the handover date an apprentice needs clear answers to four questions: Who is my employer, who is my trainer, who decides day to day and what happens with school and examinations? A general circular does not answer these questions. The actual contact persons must be known.

The information should match the apprentice's age, experience and circumstances. For minors, the statutory communication duties and involvement of guardians must be checked for the particular situation. Important training decisions should not be discussed only between adults.

A short meeting record states what was explained and which questions remain open. It is not a formal phrase for its own sake. It allows the successor to identify uncertainty about tasks, hours, school or examinations at an early stage.

Treat the apprentice file as its own handover element

The file should contain the training contract, training plan, current progress, school and examination dates, the apprenticeship office contact, trainer appointment and business contacts. Add only information required for training or a specific decision.

The successor should compare the file with payroll and personnel administration. Pay, hours, leave and absences must not be taken from an outdated list. At the same time, distinguish information needed for the employer role from data that should remain accessible only to authorised people.

A follow-up plan completes the handover. After two to four weeks check whether responsibilities work, whether the trainer has enough time and whether the transfer creates practical problems. Early action prevents an apprentice from being left with an unresolved change of responsibility.

Frequently asked questions about apprentices in succession

Does an apprenticeship end automatically when a business is transferred?

No. Under Section 3 AVRAG the new owner generally enters existing employment relationships. In 9 ObA 193/98t the Supreme Court confirmed that this can include an existing apprenticeship. The transfer structure and training eligibility still require a specific check.

Does the successor have to sign a new training contract?

It depends on whether the employer changes or the existing company remains the contracting party. A change of shareholders or managing directors does not automatically create a new contract. A change of employer must be coordinated with the competent apprenticeship office.

What happens if the former trainer leaves?

A suitable replacement or another secure training arrangement should be organised without unnecessary delay. Sections 3 and 9 BAG require suitable supervision. The change of trainer does not automatically end the apprenticeship, but it must not create a real training gap.

Which documents should seller and successor review?

Review the training contract, occupation, start and end of training, progress, school and examination dates, trainer appointment, work plan, open discussions and the apprenticeship office contact. The records must match the actual training situation.

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