A works council is an elected body representing employees at a workplace. Several European countries require or enable one once headcount passes a threshold. Germany's Betriebsrat holds the strongest powers, and France, the Netherlands, and Austria operate similar systems. Multinationals above certain size thresholds may also need a European Works Council.
Information, Consultation, and Codetermination
Council rights come in three strengths. Information rights require the employer to share defined business data. Consultation rights require the employer to seek the council's opinion before acting on matters such as restructuring. Codetermination rights mean the employer cannot act without the council's agreement on topics like working time arrangements and employee monitoring.
Dismissals and Works Councils
In Germany, most dismissals require consultation with the council before notice is given. A dismissal made without it is invalid. Council members themselves usually hold enhanced protection against dismissal.
Planning Around Council Timelines
Council processes take time, and that time belongs in project plans. Restructurings, new HR systems, and policy changes in council countries should be scheduled around consultation. Announcing a decision to staff before consulting the council is the most common and most costly mistake.