Definition
Co-determination means that the works council plays an active role in certain decisions made by the employer – rather than simply being kept informed. In social matters such as working hours, overtime or holiday policies, the employer may not take action without reaching an agreement with the works council. The works council must be involved in dismissals, transfers and recruitment – a dismissal without its consultation is invalid. In the case of major economic decisions such as operational changes or closures, the works council has rights to information and consultation.
Specialist solicitor in employment law
With over 15 years’ experience in employment law
Classification under employment law
The works council has mandatory co-determination rights in social matters (Section 87 of the Works Constitution Act), in relation to personnel measures (Sections 99–103 of the Works Constitution Act) and economic decisions (Sections 111 et seq. of the Works Constitution Act). Violations of co-determination rights may render measures invalid.
Distinction from related terms
Participation: Participation means that the works council is consulted or informed. Co-determination goes beyond this and, in certain cases, requires the consent of the works council.
Works council agreement: The works council agreement is the result of co-determination in practice between the employer and the works council. It regulates specific operational matters in a binding manner.
Practical tip
Was a transfer, a reclassification or a dismissal carried out without the works council’s involvement? This constitutes a separate ground for challenge – regardless of whether the substantive grounds for dismissal are valid. The works council can provide active support in this regard.
