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Works Council

What is a works council?

As the central representative body for the workforce within the company, the works council’s primary role is to exercise and enforce the workforce’s statutory rights vis-à-vis the employer.

What rights of participation does a works council have?

The works council has extensive rights of participation in matters relating to employees’ economic, social, health and cultural interests. Of practical significance are the right to be consulted on redundancies (general protection against dismissal), the conclusion of company agreements, and the statutory requirement for consent to the introduction of staff appraisal systems, performance-related pay, etc.

What special provisions apply to members of the works council?

The number of works council members depends on the number of employees in the company (e.g. 5 employees = 1 works council member, etc.). Members of the works council are elected by the workforce, and the election process is largely modelled on political elections. The term of office is generally four years. All members of the works council are bound by a duty of confidentiality regarding all business and trade secrets that come to their knowledge in the course of their duties. Furthermore, works council members enjoy special protection against dismissal and termination of employment. Members of the works council must not be restricted in the performance of their duties, nor must they be disadvantaged – particularly in relation to remuneration and/or promotion opportunities within the company – or given preferential treatment on account of these duties. This prohibition on restrictions, discrimination and preferential treatment of a works council member also applies in the event of a works council member’s transfer. The role of a works council member is an honorary position which, as a general rule, must be carried out alongside the professional duties that the works council member is required to fulfil as an employee. However, the law also provides for certain entitlements to paid leave (e.g. leave for works council meetings, training leave, full leave with continued payment of remuneration from a certain company size upwards, etc.).

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