Do employment contracts also transfer to the GmbH after the conversion?

As a rule: Yes. In the event of a spin-off, employment contracts are usually transferred to a limited liability company. This transfer relates to all liabilities and claims arising from the contracts, which become the responsibility of the new company. In the case of non-cash formations or sales, employment contracts can be transferred as part of a transfer of operations in accordance with Section 613a of the German Civil Code (BGB). While this ensures that the contract is recognized by the new company, the same working conditions must also apply as before the transfer.

It should be noted that employees have the right to object to such a transfer and refuse legal recognition.