A works council or ‘betriebsratis an organization representing workers or employees in companies, businesses and corporations which functions as local/firm-level complement to national labor negotiations. Betriebsrat has variant names in many countries. In many European countries including Britain it is called Joint Consultative Committee; in Germany and Austria it is called Betriebsrat; in France it is known as Comité d'Entreprise; in Spain it is popularly known as Comité de empresa; in Belgium works council is called Conseil d'Entreprise; and in Luxembourg it is called Comité Mixte.


Works councils primarily exist for three main reasons. Firstly, to reduce workplace conflict by improving and systematizing communication channels; secondly, to increase bargaining power of employees at the expense of employers by means of legislation; and lastly, to correct market failures by means of public policy.

Betriebsrat is very successfully implemented in Germany. In Germany betriebsrat was formed based on the Works Constitution Act. In the Weimar Republic, the Works Councils Act of 1920 laid down the rights and obligations of the works as workplace representation of workers. Post World War II, the rights were regulated in 1952 and adopted as the Works Constitution Act. Usually employees of a firm/company (with minimum 5 permanent employees) are elected to represent the interests of employees through involvement and participation in specified operational decisions.


Election of council members is done by company employees for a term of four years. Necessarily the council representatives are not required to be union members. They can be formed in companies where neither the employer nor the employees are organized. Works council or betriebsrat members may be also be appointed to the Board of Directors.


There are many institutes that help build successful and knowledgeable speakers across all industries who form a part of the works council. From the extensive judicial database, the speakers can gain information on particular decisions, judgments, case law on all issues that are of interest to their company specific scenario. Practical tips for many issues are cited in the database to guide the representatives to gather insight. The institutes offer courses that teach the council members practical tools that help them manage company situations. Council members of different companies can meet and discuss to exchange information with colleagues from other companies to better solve their issues. Such institutes help you serve your work council in an effective manner.

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