Works Council Agreement Germany

In practice, enterprise committees are mainly created in medium and large enterprises and much less often in small enterprises: in Germany, enterprise committees are organised in 97.5 per cent of companies employing more than 1,000 people, but only in 4.2 per cent of enterprises with 5 to 20 employees. One of the most frequently studied (and arguably most successful) implementations of this institution is in Germany. The model is essentially as follows: at the national level, national trade unions (for example. B IG Metall) and national employers` organisations (for example. B metall) and local companies meet with company committees to adapt these national agreements to local conditions. Corporate committees are elected by company staff for a four-year term. They do not need to be unionized; Company committees can also be formed in companies where neither the employer nor the employee is organized. The creation of an enterprise committee is not mandatory for workers. The creative initiative must come from workers or trade unions. When a company has more than one branch, it is generally possible to create a business committee for each branch, provided it has five or more employees.

With respect to staff planning and training, the employer is required to inform and discuss with the Company Committee all staffing needs. The Works Council plays a special role in promoting gender equality and can also make proposals, such as changes to working time, to improve job security. The Works Council has a general right to consult on training and, when workers are to be educated, the issue is subject to opposable participation. Decisions on the implementation of training actions, such as the practical experience of trainees, the choice of apprentices and the introduction of examinations in the workplace, are also subject to opposable participation, but not to the question of whether training takes place. The Works Council may also veto the appointment of trainers if it deems them unsuitable. By judgment of 3 August 2017, the Oberlandesgericht Hessen decided that the participation rights of an enterprise committee will not be extended to the share option plans of an employer`s foreign parent company (docket 5 TaBV 23/17). Under German law, works councils have a right to participate in the principles of remuneration. In this …

Individual complaints can also be made to the Works Council, and if the Works Council takes them back and fails to reach an agreement with the employer, the matter is referred to the conciliation committee of the works councils in Germany with a number of positive effects.