Term
Works council
An elected employee body at an employer with at least 50 staff, with rights to information, consultation and, in some matters, co-determination. If a trade union operates in the company, the council's rights are narrower.
Updated
What it means
A works council is an elected employee body at an employer with at least 50 staff, representing employees' interests towards management. It has rights to information, to consultation on important matters and, in some areas, to co-determination, for example on certain measures concerning working conditions.
Where there are fewer employees, from 3 to 49, an employee trustee plays a similar role. A works council or trustee may operate alone or alongside a trade union, with competences divided between them by law.
If a trade union operates at the employer, the works council's rights are narrower. The union has the exclusive right to collective bargaining and to conclude a collective agreement, while the works council keeps mainly the right to monitor compliance with employment law.
How it works in practice
The employer must consult the works council on matters such as dismissals, collective redundancies, changes to work organisation, work rules and health and safety measures. Some acts taken without consultation risk being invalid.
Works council members are entitled to time off to perform their role and enjoy enhanced protection against dismissal. The employer should give them the information they need and a place to meet, since constructive dialogue helps prevent conflict.
Elections to the works council are organised by the employees, with the law setting the conditions for valid elections. The employer should not influence the elections but can help with practical arrangements, such as providing a room and a list of employees.
What to watch out for
If the employer fails to consult employee representatives where the law requires it, for example on dismissals for certain grounds, it risks invalidity or sanctions. It is therefore important to know who represents the employees and what must be discussed with them.
A works council is not a trade union and cannot conclude a collective agreement. If employees want to bargain collectively over pay and conditions, they must form or join a trade union, which has the right to do so.
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