Industrial Constitution Law
In all private companies, e.g. private limited companies ("GmbH") or public limited companies ("Aktiengesellschaft") that permanently employ at least five employees, it is possible to elect a works council ("Betriebsrat") in accordance with the Industrial Constitution Law. The "Betriebsrat" represents the interests of the workforce within the workplace, working closely together with the employers as well as with the trade unions and employer federations represented in the firm.
The "Betriebsrat" is elected by all employees working in the company, regardless of their nationality. The "Betriebsrat" makes sure, for instance, that workers’ legal rights, safety regulations, collective bargaining agreements and company agreements are complied with and that employees are not treated differently due to their ethnic origin, religion, nationality, political or trade union activities and affiliations, or because of their gender or sexuality.
Another important legal requirement of the "Betriebsrat" is to foster the integration of foreign employees and to promote greater understanding between them and the German workers, and to demand measures to combat racism and xenophobia within the company. It also has the right to demand the removal of an employee for racist or xenophobic behaviour and to veto the recruitment of a prospective employee for the same reasons.
The "Betriebsrat" has the right to be consulted in social, personnel and economic matters. For example, it also has a say if workers are ordered to work overtime or short time. It also has a right to be involved in any envisaged recruitment or dismissal of workers and in drawing up social plans in the event of factory closures or other company changes. In some companies the employers and "Betriebsrat" have concluded company agreements to promote equal opportunities and to protect against discrimination.
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