Part Three – Effects of Commencement of Insolvency Proceedings

Chapter Two – Performance of Transactions. Co-operation of the Works Council

Section 120 – Termination of Works Agreements

(1) If provision is made in works agreements for benefits that burden the insolvency estate, the insolvency administrator and the works council shall consult on a mutually agreed reduction in the benefits. Such works agreements may also be terminated subject to three months’ notice, even if a longer notice period has been agreed.

(2) The right to terminate a works agreement for good cause without notice remains unaffected.

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German Insolvency Code / in force since 29. December 2016