Works councils are employee representation bodies that collaborate with management on workplace decisions. Unlike unions which focus on negotiation, works councils emphasize information sharing and consultation. They are mandatory above certain employee thresholds in many European countries.
Council Rights
Works councils typically have rights to information about company performance and plans, consultation on major decisions affecting employees, and sometimes co-determination (shared decision-making) on specific matters like work rules or social issues.
Country Variations
Works council requirements and powers vary by country. Germany has strong co-determination rights. France requires different types of representation. Other countries have different models. Understanding local requirements is essential.
EOR Considerations
When using an EOR, works council rights apply at the EOR entity level since they are the employer. This may affect EOR employees differently than direct employees. Understanding how works council representation works with EOR arrangements requires local expertise.