In many companies, the works council (Betriebsrat) is a key player – in matters of working time, the introduction of software, recruitment, dismissals and restructuring. Anyone who knows the co-determination rights negotiates better and avoids costly mistakes. We support employers in their cooperation with works councils and, provided there is no conflict of interest, also advise works council bodies.
Key points at a glance
- A works council can be elected in establishments that generally have at least five employees eligible to vote.
- In social matters (including working time, technical monitoring and pay principles), it has a genuine right of co-determination (§ 87 BetrVG).
- The works council must be consulted before every dismissal; otherwise the dismissal is invalid (§ 102 BetrVG).
- In the case of operational changes in companies with more than 20 employees, a reconciliation of interests and a social plan must be negotiated.
- The employer bears the necessary costs of the works council’s activities (§ 40 BetrVG).
Election and legal status of the works council
Regular works council elections take place every four years between 1 March and 31 May – most recently in 2026, next in 2030. A simplified election procedure applies in smaller establishments. Works council members, electoral board members and candidates enjoy special protection against dismissal (§ 15 KSchG, § 103 BetrVG). Obstructing the works council election or the works council’s activities is a criminal offence (§ 119 BetrVG).
Co-determination in social matters
In the cases set out in § 87 Abs. 1 BetrVG, the employer can only act with the consent of the works council; if no agreement is reached, the conciliation committee (Einigungsstelle) decides. Of particular practical relevance are:
- Working time: start and end of daily working hours, breaks, distribution over the days of the week, overtime and short-time work
- Technical equipment: introduction and use of systems capable of monitoring conduct or performance – such as time recording, Microsoft 365, CRM systems or AI applications
- Workplace rules: dress codes, alcohol bans, rules on private use of the internet and mobile phones
- Pay principles: remuneration systems, bonus schemes, commission models
- Leave principles and leave schedule, mobile working and health protection
Measures implemented without the required consent are often invalid vis-à-vis the employees; the works council can demand that they cease.
Personnel matters
In companies with more than 20 employees eligible to vote, the employer must inform the works council before hirings, pay-grade classifications, reclassifications and transfers, and obtain its consent (§ 99 BetrVG). If the works council refuses consent in due form and within one week, the employer must have it replaced by the Labour Court (Arbeitsgericht).
The works council must be consulted before every dismissal (§ 102 BetrVG). It has one week to raise concerns in the case of ordinary dismissals and three days in the case of extraordinary dismissals. A proper objection can give the employee a right to continued employment until the conclusion of the unfair dismissal proceedings.
Operational changes, reconciliation of interests and social plan
If the employer is planning an operational change – such as a closure, relocation, merger or substantial reduction in staff – it must inform the works council in good time and comprehensively (§ 111 BetrVG). The „whether“ and „how“ are negotiated in a reconciliation of interests (Interessenausgleich), and compensation for economic disadvantages in a social plan (Sozialplan), which can be enforced through the conciliation committee if necessary. In the case of collective redundancies, the consultation and notification procedure under § 17 KSchG must also be followed – errors can render all dismissals invalid.
Works agreements and the conciliation committee
Works agreements (Betriebsvereinbarungen) apply directly and mandatorily to all employees of the establishment (§ 77 BetrVG). They are the most important instrument for shaping working conditions – from working time arrangements to the use of AI. If the parties cannot reach agreement, a conciliation committee chaired by an impartial chairperson decides. We represent companies as committee members and prepare conciliation committee proceedings strategically.
Practical examples
The following cases are simplified, typical scenarios from employment law practice. They are for illustration only; every individual case must be assessed separately.
Microsoft 365 without a works agreement
Situation: A service provider introduces Microsoft 365, including Teams and analytics functions, without involving the works council. The works council applies for an interim injunction.
Legal assessment and course of action: The software is capable of monitoring performance and conduct; its introduction was subject to co-determination. We swiftly negotiated a framework works agreement on IT use with annexes for each system. The proceedings were resolved without permanently halting the rollout.
Consultation with incomplete social data
Situation: An employer consults the works council on a dismissal for operational reasons but fails to mention the employee’s maintenance obligations.
Legal assessment and course of action: The consultation was incomplete, and the dismissal was therefore invalid. For employers, the case shows that a standardised consultation form covering all social data and grounds for dismissal avoids such errors.
Site relocation
Situation: A supplier wants to relocate production from Hanover to another site; 60 jobs are affected.
Legal assessment and course of action: We planned the process from informing the works council, through the reconciliation of interests and social plan, to the collective redundancy notification. Thanks to a voluntary programme and a transfer company, dismissals were largely avoided.
Transfer without consent
Situation: A logistics company permanently transfers a shift supervisor to another branch without involving the works council.
Legal assessment and course of action: Without consent under § 99 BetrVG, the transfer could not be carried out. The employee was initially entitled to refuse to work at the new location. After the works council had subsequently been involved and its consent replaced by the court, an amicable solution was found.
Frequently asked questions
Does my establishment have to have a works council?
No. A works council is only elected if the workforce takes the initiative. However, the employer may not obstruct the election.
Who pays the works council’s lawyer?
The employer, provided that bringing in a lawyer is necessary and the works council has passed a proper resolution (§ 40 BetrVG).
Can the works council prevent a dismissal?
No. It can object and thereby strengthen the employee’s position, but it cannot prevent the dismissal – except in the case of works council members, whose extraordinary dismissal requires its consent.
Does a works agreement also apply to new employees?
Yes. It applies to all employees of the establishment with the exception of senior executives.
Would you like us to review your case? Send us your documents – we usually respond within 24 hours and will tell you the expected costs in advance.
Note: This information provides a general overview of the legal situation (as of November 2026) and does not replace legal advice on your individual case.
This page is a translation of the German original. It is for general information only and does not replace legal advice on your individual case. German version