What does a works council do? Explained: These are the duties of a works council

In companies with five or more employees, employees elect works council members. This is stipulated in the Works Constitution Act (BetrVG). Every four years, employees elect their works council members from among themselves. The next election will take place from March to May 2026. In companies without a works council, the first election can be held at any time.

Representing Employees’ Interests

The role of works councils is to represent the interests of employees and ensure that their rights, as enshrined in laws, collective bargaining agreements, or company agreements, are upheld. In doing so, the works council is also tasked with promoting gender equality and the work-life balance, as well as the integration of people with severe disabilities and foreign workers (Section 80 BetrVG).

The Works Constitution Act requires works councils and employers to cooperate in a spirit of trust—in collaboration with the collective bargaining parties, namely employer associations and labor unions (Section 2 of the Works Constitution Act).

Good Work, Fair Pay, and Professional Development

The works council ensures good working conditions and fair pay. It oversees proper job classification and helps determine working conditions—including start and end times, break times, overtime, on-call duty, part-time work, flex time, remote work, and much more. The works council must be consulted before any termination of employment. It advocates for the rights of apprentices and ensures that all employees have access to continuing education opportunities. The works council also ensures occupational safety and health in the workplace.

Rights to Information, Consultation, and Co-determination

The Works Constitution Act grants works councils a range of participation rights to carry out their duties.

1. Information: The employer must provide the works council with comprehensive and timely information (Section 80(2) of the Works Constitution Act (BetrVG))—for example, regarding wages, salaries, and compensation within the company, or the use of temporary workers and contractors. The employer must consult with the works council on matters of occupational safety and environmental protection in the workplace (Section 89).
2. Consultation: The employer must consult with the works council regarding measures related to workplace design, work processes, the work environment (Section 90), personnel planning, and job security (Section 92).
   This also applies to planned changes to the business, such as changes to the organizational structure, restrictions, and the closure of the business (Section 111).
   The works council may also propose measures to the employer aimed at safeguarding employment (Section 92a).
3. Hearing: The works council must be consulted before any termination. The employer must inform the works council of the reasons for the termination. A termination issued without consulting the works council is invalid.
   The works council may object to the termination with justification—for example, if continued employment is possible. Benefit for the employee: If the employee files a lawsuit against the termination, the employer must continue to employ the employee until a final decision is reached in the unfair dismissal proceedings. However, the works council cannot ultimately prevent or prohibit the termination by legal means.
4. Refusal to Grant Consent: The employer requires the works council’s consent on certain matters—such as personnel decisions including hiring, transfers, job classification, and reclassification (§99).
5. Co-determination: The works council has a say in the start and end times of the workday, overtime, performance monitoring, and occupational health and safety measures (Section 87); in changes to work (Section 91); in vocational training measures (Sections 97, 98); and in the reconciliation of interests and social plans, which govern matters such as severance pay in the event of layoffs and plant closures (Section 112).
   On many of these issues, the works council has the legal right to compel negotiations on a company agreement. In the event of a dispute, a conciliation board—a body within the labor court system, typically chaired by a labor court judge—makes the final decision.
    

Works councils need a strong union

However, the works council’s legal authority also has its limits. For example, the works council cannot negotiate the amount of compensation, wages, and salaries at the company, nor can it negotiate weekly working hours or the number of vacation days. Only a union can enforce these terms in a collective bargaining agreement (Section 77, Paragraph 3).

Furthermore, while the works council can make proposals to secure jobs and force negotiations on a reconciliation of interests and a social plan, it has no legal means to prevent a closure.

And the works council is certainly not permitted to call for a strike to enforce demands. Only a union can do that. The works council can only take the matter to court, which can drag on for years—with an uncertain outcome.

That is why the works council needs the backing of a union like IG Metall. IG Metall’s experts advise and train works councils, working with them to develop strategies and solutions. IG Metall negotiates collective bargaining agreements with employers regarding pay, working hours, and vacation time, as well as social collective agreements in the event of closures—and, most recently, “future collective agreements” that secure investments, training, and jobs.

And: Unlike works councils, IG Metall can, as a last resort, call for a strike to put economic pressure on the employer and thereby gain a stronger negotiating position.

Even strong works councils in large companies know full well that they need IG Metall.
 

Works Councils and Unions Secure Jobs

Together with a strong IG Metall—with many IG Metall members in the workplace—works councils can achieve significantly more for employees. Even more is possible in companies with co-determination where employee representatives sit on the supervisory board. They can , for example, request information and propose alternatives—although, by law, the employer side always holds the majority of votes and thus has the final say.

Nevertheless, employees with continuous co-determination at all levels of the company—in the workplace and on the supervisory board—can achieve significantly more in partnership with a strong union: at the very least, they can secure higher severance packages, make closures extremely costly—and, in some cases, even save and secure locations.