Employee participation law
If a company employs 50 or more people, a works council must be established. A works council has certain rights. Amongst other things, this includes the right of prior consultation and veto rights in relation to certain decisions.
Right of prior consultation
The works council has the right to give advice on a number of important financial and organisational decisions which are to be made by the company. Such decisions can include a reorganisation or a merger. The works council also has the right to advise on the appointment, suspension or dismissal of a director under the articles of association.
Right of consent
There are other decisions that a company must first submit to the works council for approval. These primarily relate to decisions affecting terms of employment. This can include decisions relating to the adoption, amendment or repeal of a scheme that applies to all (or a group of) employees.