Establishing a works council should become easier

Fewer and fewer companies in Germany have a works council. A prerequisite for the establishment of a works council is the presence of five employees. According to the explanatory memorandum to the law, only one in ten companies that meet the requirements for setting up a works council have one. These are particularly rare in the building cleaning and construction sectors. In the West, only 41 % of employees are represented by works councils, in the East only 36 %. The German government now wants to change this with the new legislative proposal.

According to a decision by the Federal Cabinet, the legislative initiative of the „Works Council Modernization Act“ is intended to make it easier to establish works councils. This is intended to strengthen the protection and representation of employees' interests. According to the reform plans of Federal Minister of Labor Heil, the rules for works council elections are also to be simplified, the rights of works councils strengthened and protection against dismissal for works councils improved.

Easier establishment of works councils

The planned law envisages lowering the requirements for election proposals. For example, companies with up to 20 employees will no longer require supporting signatures. In companies with up to 100 employees, only two signatures will be required.

The options for agreeing the simplified election procedure are also to be extended. This will now be mandatory in companies with up to 100 employees and can be agreed between the election committee and the employer in companies with up to 200 employees. The simplified procedure will significantly shorten the existing deadlines and therefore speed up the election considerably.

Improved protection against dismissal for works councils

In future, the first six employees will receive protection against dismissal instead of the previous three. This is to take effect as soon as employees start thinking about and planning a works council election, provided they submit a certified declaration to this effect. The protection against dismissal is therefore to take effect even before the actual invitation to the works council election.

More say

Overall, the rights of works councils are to be strengthened. In particular, they are to have a say in the organization of mobile work and the further training of employees. The draft bill also emphasizes that works councils should also be allowed to have a say in the definition of guidelines for personnel selection and the planning of work processes if the company relies on artificial intelligence to make decisions.

In future, it should also be possible to participate in works council meetings via video chat or telephone if this is provided for in the rules of procedure and at least 25 % of the members do not object.

The bill must now be passed by the Bundestag and Bundesrat.