Working with the Works Council

Background

• Sources of employment law - plus similarities and key differences compared to common law jurisdictions.
• Cultural differences in interpersonal relations.
• The German corporate structure and its impact on the management function.
• Key players: trade unions, works councils and employer associations.

Working with the Works Council on staff/HR matters

• Information, consultation and co-determination.
• Representation of executives within corporates.
• Works council involvement throughout the lifecycle of the employment relationship.
• Role of works council agreements.
• Role of collective bargaining agreements.

Works Council Agreements

• Form requirements.
• Relationship between employment contract and works council agreement.
• Favourability principle (Günstigkeitsprinzip).
• Collective bargainig agreement: flexibility clauses (Öffnungsklauseln).
• Ad hoc informal arrangements with the works council (Regelungsabreden).
• Custom and practice.
• Co-determination rights of the works council – the catalogue of section 87 of the Works Constitution Act (§ 87 BetrVG).
• Conciliation process (Einigungsstellenverfahren).

Practical examples

• Case study: Collective redundancies and the role of the works council.
• Negotiating a social plan (Sozialplan) and balancing of interests agreement (Interessenausgleich).
• Case study: Outsourcing as a “change to the business” (Betriebsänderung).

Expiry date of Works Council Agreements

• Changing works council agreements.
• Terminating works council agreements and consequences.
• Continuation of terms of works council agreements beyond the termination date (Nachwirkung).
• Works council agreements and M&A.