Understanding Works Councils in Germany

A works council represents employees in dealings with employers. It's mandatory in Germany for businesses with five or more staff members. The council ensures fair work practices and employee rights under the Works Constitution Act.

Council members are elected by employees for four years. The size varies with company size, ensuring diverse representation. Works councils must include both genders if the workforce contains at least one member of the underrepresented gender.

Council members receive training to manage their roles effectively. Surprisingly, they can also enlist external experts like lawyers or consultants for complex issues, with costs borne by the employer.

Beyond handling grievances, councils collaborate on workplace guidelines, work hours, and remuneration systems. They can even influence hiring, layoffs, and workplace changes, making them integral to operational decisions.

Unique to German corporate governance, Mitbestimmung allows works councils to participate in company supervisory boards, thus enabling direct influence on corporate policy and strategy.

In companies with more than 100 employees, an economic committee receives and discusses business reports. This committee then informs the works council about the company's economic matters.

Surprisingly, multinational companies must establish European Works Councils to represent employees across national borders. This fosters a unified approach to worker rights and dialogue within big corporations.