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Works council

Arbeitab 9 J.
In Germany, a works council can be set up in companies with 5 or more employees. Members are practically impossible to dismiss. The employer bears all costs (election, training, time off). Obstructing its formation is a criminal offence.

The Betriebsrat (works council) represents the interests of employees vis-à-vis the employer in Germany (Works Constitution Act, BetrVG).

Founding:

• From 5 permanent employees (§1 BetrVG)
• Of whom at least 3 over 18 and with 6+ months in the company
• Simplified procedure: since 2021 up to 100 employees (previously 50)
• Under 20 employees: no more collecting signatures needed – 3 people call a meeting

Rights of the works council:

• Co-determination: working hours, breaks, overtime, part-time, home office rules
• Right to information: on dismissals, hirings, restructurings
• Participation: further training, social facilities, workplace rules

Protection against dismissal (the strongest in German law!):

• Ordinary dismissal during the term of office AND for 1 year afterwards is not permitted (§15 KSchG)
• Election committee: protected + 6 months afterwards
• Extraordinary dismissal only with the consent of the works council or labour court

Costs:

• Entirely the employer (§20 para. 3 BetrVG): election, training, release from work, materials
• Obstructing the founding: a criminal offence under §119 BetrVG (up to 1 year in prison!)

Did you know? Since the 2021 Works Council Modernisation Act, companies with fewer than 20 employees no longer need signatures to set one up – 3 people call a meeting and off you go. The employer pays all the costs.
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