Works Councils and Co-determination Rights

Works councils in Germany: the basics

Works councils in Germany are elected bodies that represent the employees of an establishment towards the employer. Their rights are set out in the Works Constitution Act (Betriebsverfassungsgesetz, BetrVG). A works council (Betriebsrat) can be elected in any establishment with at least five permanent employees entitled to vote, three of whom are eligible for election (§ 1(1) BetrVG). The employer cannot prevent an election and may not obstruct it; the initiative lies with the employees or a trade union represented in the establishment. Once elected, the works council has information, consultation and co-determination rights that affect almost every area of human resources management, from working time and pay structures to IT systems, dismissals and restructurings.

For international employers, German works councils are often the most significant difference from their home jurisdiction. Many decisions that management elsewhere can take unilaterally, such as introducing a new HR software, changing shift patterns or rolling out a bonus scheme, require the works council's agreement in Germany, and if no agreement is reached a conciliation board decides. Measures implemented without the required co-determination can be stopped by court order. At the same time, a constructive relationship with the works council can make change faster and more legitimate.

This page explains the structure of employee representation, the election rules including the 2026 regular elections, the main information and co-determination rights with a focus on IT systems and artificial intelligence, works agreements, the conciliation board, and works council involvement in restructurings. For board-level employee representation see board-level co-determination.

Structure and elections of works councils

Employee representation is organised in levels. The works council represents an establishment (Betrieb). Where a company has several establishments with works councils, a central works council (Gesamtbetriebsrat) must be formed, responsible for matters that cannot be regulated at establishment level. In a group, a group works council (Konzernbetriebsrat) can be formed. In companies with more than 100 permanent employees, an economic committee (Wirtschaftsausschuss) must be formed to consult with the employer on economic matters and inform the works council (§ 106(1) BetrVG). For transnational groups, a European works council may be established under the European Works Councils Act.

The size of the works council depends on the number of employees: one member in establishments with 5 to 20 employees entitled to vote, three members with 21 to 50, five members up to 100, seven from 101 to 200, and so on (§ 9 BetrVG). In larger establishments, a number of members are released from their work duties to carry out works council tasks. Works council members enjoy special protection against dismissal and may not be disadvantaged or favoured because of their office. The employer bears the costs of the works council's activities, including training, necessary experts and legal proceedings.

The 2026 works council elections

Regular works council elections take place every four years in the period from 1 March to 31 May (§ 13(1) BetrVG). The 2026 regular election period has just ended, so most works councils in Germany have recently been re-elected or newly constituted, and their four-year term runs until the next regular period in 2030. Elections outside the regular period are possible, for example where no works council exists, the number of employees changes significantly, or an election is successfully challenged. In establishments with 5 to 100 employees a simplified election procedure applies, and it can be agreed for establishments with up to 200 employees. Our insight on works council elections 2026 explains the procedure in detail.

Information, consultation and co-determination

The rights of works councils are graded. Information rights oblige the employer to inform the works council in good time and comprehensively, providing the necessary documents. Consultation rights require the employer to discuss a measure with the works council before deciding. Co-determination rights (Mitbestimmungsrechte) mean that the employer cannot act without the works council's agreement; if they cannot agree, the conciliation board decides. The strongest rights concern social matters listed in § 87(1) BetrVG, to the extent that no statutory or collective agreement provision already regulates the matter.

The catalogue in § 87(1) BetrVG includes the order of the establishment and employee conduct, the start and end of daily working time and breaks, temporary changes to working hours such as overtime and short-time work, the principles of remuneration and the introduction of new pay methods, holiday plans, health and safety measures, and the introduction and use of technical devices designed to monitor the behaviour or performance of employees (§ 87(1) no. 6 BetrVG). In personnel matters, employers in companies with more than 20 employees entitled to vote must obtain the works council's consent to each hiring, grouping, regrouping and transfer (§ 99 BetrVG), and the works council must be heard before every dismissal (§ 102 BetrVG).

Working time recording

The Federal Labour Court has held that employers are obliged under § 3(2) no. 1 of the Occupational Safety and Health Act (ArbSchG) to introduce a system for recording the working time of their employees (BAG, order of 13 September 2022 – 1 ABR 22/21). Because this obligation follows from statute, the works council cannot use the conciliation board to force the employer to introduce electronic time recording; its co-determination right is limited to how the system is designed. The decision is explained in the court's press release. Employers must therefore ensure that working time is recorded, and should agree the details with their works councils.

IT systems and AI tools

For modern employers, the most frequent co-determination issue concerns software. The Federal Labour Court interprets § 87(1) no. 6 BetrVG broadly: it is sufficient that a technical device is objectively capable of monitoring behaviour or performance, regardless of whether the employer intends to use it for that purpose. Almost every HR system, collaboration platform, ticketing tool, CRM and cloud office suite processes data that could be used to monitor employees and therefore requires the works council's agreement before introduction and for material changes. In groups with central IT decisions, the competent body is often the central or group works council.

Artificial intelligence is expressly addressed in the BetrVG. The employer must inform the works council in good time about the planning of work processes and procedures, including the use of artificial intelligence, and consult with it (§ 90(1) no. 3 BetrVG). If the works council needs to assess the introduction or use of AI to carry out its tasks, the involvement of an expert is deemed necessary, which means the employer must bear the costs (§ 80(3) BetrVG). AI tools used for selection guidelines in hiring, transfers or dismissals are subject to co-determination over those guidelines. In practice, employers negotiate framework works agreements on IT and AI that set general principles and a procedure for approving individual tools quickly.

Data protection interacts with these rights. Works agreements can serve as a legal basis for processing employee data, but they must meet the GDPR's requirements; see our page on GDPR and German data protection law. The EU AI Act classifies many AI systems used in employment as high-risk and requires deployers to inform workers' representatives before such systems are put into service; see EU AI Act compliance.

Mobile work and remote work

Since 2021, the works council also has a co-determination right over the design of mobile work performed using information and communication technology (§ 87(1) no. 14 BetrVG). The decision whether to offer mobile work remains with the employer, but the rules on availability, working time, equipment, data security and cost reimbursement are subject to agreement. Individual employees have no general statutory right to work from home, so the works agreement and the employment contract determine the framework. Many employers have consolidated their post-pandemic arrangements into works agreements on hybrid work, combining this right with the rules on working time and technical devices.

Works agreements and the conciliation board

Agreements between employer and works council are recorded in works agreements (Betriebsvereinbarungen), which must be in writing and signed by both parties. Works agreements apply directly and mandatorily to the employment relationships in their scope, so they function like a collective agreement at establishment level. They cannot, however, regulate pay and other working conditions that are usually set by collective agreements, unless the collective agreement expressly allows it. Works agreements can be terminated with three months' notice unless otherwise agreed; in matters of mandatory co-determination, their provisions continue to apply until replaced.

If employer and works council cannot agree on a matter subject to co-determination, either side can call on the conciliation board (Einigungsstelle, § 76 BetrVG). It consists of an equal number of members appointed by each side and an impartial chair, usually a labour court judge, appointed by agreement or by the labour court. Its decision replaces the agreement between the parties and can be challenged in court only for exceeding its discretion within a short period. Conciliation board proceedings take time and generate costs for the employer, so both sides have an incentive to reach agreement.

Enforcing co-determination

If the employer implements a measure without the required co-determination, the works council can apply to the labour court for an injunction, including in interim proceedings, and in serious cases for an order against gross breaches under § 23(3) BetrVG. Individual measures taken in breach of co-determination may be invalid against employees. Obstruction of works council activity is a criminal offence. Employers therefore need a governance process that identifies co-determination issues early in projects, especially in international groups where decisions are taken outside Germany.

Works councils in restructurings and transactions

Works councils play a central role in restructurings. In companies with more than 20 employees entitled to vote, the employer must inform the works council about planned operational changes that may entail substantial disadvantages for the workforce, such as closures, relocations, mergers of establishments, fundamental changes to organisation or equipment, or significant workforce reductions, and must consult with it (§ 111 BetrVG). The employer must attempt to agree a reconciliation of interests (Interessenausgleich) on whether, when and how the change will be carried out, and must agree a social plan (Sozialplan) compensating the employees' economic disadvantages; the social plan can be imposed by the conciliation board, subject to exceptions for pure staff reductions below certain thresholds and for new companies (§ 112a BetrVG).

In transactions, the economic committee must be informed of planned acquisitions of control, and in asset deals the works council is involved where the transfer coincides with an operational change. Works councils in Germany also have a role in collective redundancy procedures under § 17 KSchG and in dismissals; see dismissals and workforce restructuring. An early and well-prepared negotiation strategy, including the timing of information and the expected content of the social plan, is decisive for the timetable and costs of any restructuring.

Day-to-day cooperation matters as much as formal rights. The BetrVG requires employer and works council to cooperate in a spirit of mutual trust and provides that they should meet at least once a month to discuss open issues with a genuine will to reach agreement (§ 74(1) BetrVG). Employers who share information early, explain the business rationale for decisions and involve the works council in project planning generally reach agreements faster and on better terms than those who treat the works council as an obstacle. A single point of contact on the employer side, regular meetings and a shared calendar of upcoming topics help to keep the relationship productive.

• Identify which representation body is competent before starting negotiations.
• Provide information early and in writing; incomplete information delays deadlines.
• Prepare a budget and a fallback position for the social plan.
• Do not implement the change before the reconciliation of interests has been attempted.

How TRW & Co helps

We act for employers in all matters involving works councils in Germany. We advise on elections and the structure of employee representation, negotiate works agreements on working time, remuneration, IT systems and AI tools, represent employers before conciliation boards and in labour court proceedings, and design processes that identify co-determination issues early in group projects. In restructurings and transactions we prepare the information and consultation process, negotiate reconciliations of interests and social plans, and coordinate with the corporate and data protection workstreams. To discuss a works council matter, please contact us.