Trade unions and works councils: What co-determination exists in Germany?

German labor law provides for extensive Co-determination rights for employees, in particular through Trade unions and Works councils. These play a central role in everyday working life and can bring challenges as well as benefits for employers.

Companies operating in Germany or employing staff here should be familiar with the legal regulations in order to avoid conflicts and act in a legally compliant manner.

1. trade unions: influence on employment relationships and collective agreements

Trade unions are Employee interest groups and negotiate collective agreements that apply to many companies in Germany.

Important points for employers:
Trade unions represent the interests of employees vis-à-vis employers.
You can Collective agreements negotiate agreements that regulate wages, working hours and working conditions.
Collective agreements can binding be when:

• The employer is a member of the relevant employers' association.
• The collective agreement has been declared generally binding (e.g. in the construction industry).

Practical example:
A metal processing company in Germany is a member of the employers' association. It must comply with the collective agreement of IG Metall, which stipulates certain minimum wages and working hours.

1. trade unions: influence on employment relationships and collective agreements

Trade unions are Employee interest groups and negotiate collective agreements that apply to many companies in Germany.

–Important points for employers:

Trade unions represent the interests of employees vis-à-vis employers.
You can Collective agreements negotiate agreements that regulate wages, working hours and working conditions.
Collective agreements can binding be when:

• The employer is a member of the relevant employers' association.
• The collective agreement has been declared generally binding (e.g. in the construction industry).

Practical example:
A metal processing company in Germany is a member of the employers' association. It must comply with the collective agreement of IG Metall, which stipulates certain minimum wages and working hours.

1.1 What do collective agreements mean for employers?

Types of collective agreements:

• Collective agreement: Applies to an entire industry (e.g. metal industry, construction industry).
• In-house collective agreement: Only applies to a specific company.What can a collective agreement regulate?

1. Wage and salary structures
2. Working hours and overtime regulations
3. Notice periods
4. Special payments (e.g. Christmas bonus)Advantages for employers:
   Legal certainty: Avoidance of individual disputes about wages and working hours.
   Planning security: Clear rules for personnel and wage costs.

2. works councils: What rights do employee representatives have?

2.1 When must a works council be established?

According to Works Constitution Act (BetrVG) Employees have the right to work in companies with at least 5 permanent employees one Works Council to choose.

-Important thresholds for employers:

1. From 5 employees: Possibility to elect a works council.
2. From 50 employees: Co-determination in economic matters (e.g. personnel planning, social plans).
3. From 200 employees: Employers must involve a works council in certain personnel decisions. compelling integrate.Practical example:
   A logistics company with 60 employees gets a works council. The company must involve the works council in decisions on working hours, vacation and social plans.

2.2 Rights and duties of the works council

The works council has Co-determination, consultation and information rights in many areas.

Issues subject to co-determination (not possible without the consent of the works council!):

• Working hours and overtime regulations
• Shift schedules
• Vacation plans
• Introduction of monitoring systems (e.g. time recording, camera surveillance)Consultation and information rights (works council must be involved):
• Dismissals and transfers of employees
• Planned restructuring in the company
• Introduction of new working methodsPractical example:
  A mechanical engineering company wants to introduce a new time recording system. As this directly affects the employees, the works council must give its consent.

3. co-determination in dismissals and hiring

A works council in Germany has Special rights in the event of termination and can block them in certain cases.

Protection against dismissal by the works council:

• The works council must before each termination be heard.
• With socially unjustified dismissals the works council can lodge an objection.
• Works Council members enjoy special protection against dismissal (can only be terminated in exceptional cases).
  Practical example:
  A company with 120 employees is planning redundancies. The works council must be involved and can propose an alternative solution (e.g. short-time working).

4 What obligations do employers have towards the works council?

-Employers must make it possible for the works council to

• Participation in training courses on works council work
• Use of offices and materials in the company
• Release of works council members for meetings and negotiations

Sanctions for disregarding co-determination:

• Fines of up to €10,000if the employer does not involve the works council.
• Labor court proceedingsif the works council contests a decision.

Practical example:
A retail company ignores the works council's obligation to co-determine new working time models. The works council takes legal action - the company must reverse the changes.

5. strategies for employers in dealing with trade unions & works councils

• Communicate at an early stage: Employers should involve the works council in changes at an early stage in order to avoid conflicts.
• Check collective agreements: If a company is bound by collective agreements, the rules must be strictly adhered to.
• Obtain legal advice: Advice from a specialist employment lawyer can be particularly useful in the event of dismissals and restructuring.
• Cooperative collaboration: A works council can also be an advantage by helping to improve working conditions and resolve disputes at an early stage.