Around a sixth (16%) of employees in Germany are union members, with the vast majority belonging to the main union confederation, the DGB. Within it, individual unions, like IG Metall and Ver.di, have considerable autonomy and influence. 1

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Union density and structure

There are no national official estimates of union density (the proportion of employees who are union members) but the OECD estimate, which is based on union numbers after taking account of non-employee members, was 16.3% in 2019. 2 This is similar to the figure based on a survey of a sample of the population which produced a union density of 17.4% in 2021. 3

The main trade union confederation in Germany is the DGB, which aims to recruit all types of worker. It is by far the largest confederation, and the eight unions affiliated to it had 5,665,671 members at the end of 2023. 4

DGB unions face significant competition from non-DGB unions in the public sector and former public sectors, where another confederation, the dbb, states it has more than 1.3 million members. 5 There is also a smaller Christian confederation, the CGB, which states it has 280,000 members. 6

As well as the union confederations, there are autonomous unions for specific occupations, of which the most important are those for hospital doctors (Marburger Bund), flight attendants (UFO), and air traffic controllers (GdF). Some have significant membership. The Marburger Bund reported it had 141,019 members at the start of 2024. 7 UFO does not publish membership figures but was estimated to have had around 15,000 in 2018, 8 while the GdF is estimated to have 3,800. 9

The airline pilots’ union, Vereinigung Cockpit, which was previously independent and has around 10,000 members, became part of the dbb in 2022. 10

Together, the confederations and individual unions have around 7.5 million members. However, these figures include a substantial number of retired trade union members, perhaps as many as 30% in some of the unions in the largest confederation, the DGB. 11

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Individual unions

Historically DGB unions were organised primarily on an industrial basis, with unions for metal workers, chemical workers, employees in the public sector, finance and retail and so on. The structure set up when the DGB was created in 1949 remained largely unchanged until the 1990s. However, major mergers changed this picture.

There are now two very large unions, IG Metall and ver.di, of similar size, and all the other DGB unions, except for the chemical and energy union, IG BCE, are much smaller.

IG Metall is the largest, with 2,126,326 members (end 2023). 12 Although the vast majority of its members are still in the metalworking sector, it also has members in the textile and clothing industries, wood and plastics and the information and communications sector.

ver.di was created in 2001 from a merger of five unions and has 1,897,500 members (end 2023). Ver.di seeks to organise service workers in both the private and public sector.

The third largest union, with 572,537 members (end 2023), is IGBCE, which covers chemical and energy workers.

The five other DGB affiliates are all much smaller. They are the education and science union GEW (275,117 members), the police union GdP (208,111 members), the construction and agriculture union IG BAU (203,904 members), the food and hospitality union NGG (187,679 members), and transport and rail workers’ union EVG (184,497members)

These individual unions, particularly the larger ones, are very powerful, and have greater resources than the DGB itself. (The only actual members of the DGB are the eight unions that belong to it.)

The dbb is made up of 41 unions, with 28 representing workers employed by regional or local government, and 13 representing those employed either directly by the federal government or in private services. Each covers a specific area, such as teachers in vocational colleges or those working in prisons. The four largest unions in the dbb are the teachers’ union VBE, with 164,000 members, 13 another teachers’ union DPhV, for some secondary school and university staff, which has 90,000 members, 14 komba, a union for administrative staff in local government, also with around 90,000 members 15 and the DSTG, which represents tax officials and has around 70,000 members. 16

Around two-thirds of members of the dbb unions in public services have a special employment status, as “Beamte”, whose pay and conditions are set by law and not negotiated. 17 Beamte also have no right to strike. 18 But the dbb also includes unions which organise workers with normal employee rights. One of the most industrially powerful is the union for locomotive drivers, the GDL, which has organised several national strikes, including six in 2024. It has almost 40,000 members. 19

The Christian CGB consists of 14 separate unions of which the most important is the metalworkers’ union CGM. However, the courts have ruled in a series of cases that some of these unions do not have the capacity (in terms of membership or organisation) to conclude collective agreements (see Collective bargaining).

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Political position

Politically the DGB emphasises its formal neutrality and ensures that at least one member of its national executive board is a member of the Christian democratic CDU. 20There are also some CDU members in leading positions in individual unions. However, traditionally, the overall position of the unions and that of most union officials is closer to the social democratic SPD, 21 although there are also some important figures who support the Greens, and middle-ranking union officials played a role in the creation of the left-wing Linkspartei.

The constitution of the dbb also states that it is independent in both party political and confessional terms. It is sometimes seen as more conservative than the DGB, although, it represents a range of views. 22

The CGB in contrast, states that it is guided by Christian social teaching, which it considers can only be achieved through separate union organisation.

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Legal framework

The German constitution (Grundgesetz) provides the legal basis for trade unions’ existence and operation in Article 9 (3). This states that, “the right to form associations to safeguard and improve working and economic conditions shall be guaranteed to every individual and to every occupation or profession”.

Unlike many other countries, there is no German legislation setting out how unions should be structured or how they should operate. There are also no formal rules on representativeness, although the courts have found that unions must have the capacity to negotiate (be “tariffähig”), essentially be strong enough to be taken seriously by the employer, before they can sign collective agreements (see Collective bargaining).

Membership trends

Overall union membership has fallen sharply since German unification in 1990. The DGB has lost half of its membership since its peak in 1991, when it had 11.80 million members. The biggest drop was in the period 1991 to 2001, when it lost 3.9 million members. Since then, the number of members in DGB unions has continued to fall, but at a slower pace. Between 2011 and 2023 membership fell by 8.0% from 6.16 million to 5.67 million. 23 DGB unions have in recent years expressed growing concern at membership losses and have taken a range of initiatives to combat them, which have produced some successes. 24 In January 2024, ver.di, which has lost members over a long period, reported the biggest net increase in membership in 2023 since its creation in 2001. However, it suggested that the main reason for the increase was the successful negotiations it had conducted that year. 25

The dbb’s figures show its membership growing by 3.2% in the period from 2010 to 2018, from 1,276,330 to 1,317,729. 26 However, similar figures for later years have not been published.

The Marburger Bund (doctors) reports rising membership, growing from 131,247 at the start of 2022 to 141,019 at the start of 2024. 27

Overall trade union membership is strongest among manual workers in manufacturing and in the public services, but much weaker among workers in the private services sector.

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Women

Women are under-represented in unions, accounting for only a third of union members in both the DGB (34.1% in 2023) and the dbb (32.4% in 2018), even though women make up almost half (48.0%) of all employees.

Around a half of all employees in Germany are covered by collective bargaining and negotiations at industry level between individual trade unions and employers' organisations are the most important form of bargaining. However, the system is under pressure as employers leave or never join employers’ organisations, and the agreements themselves provide for greater flexibility at company level. 28

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Collective bargaining coverage and structure

The OECD estimates collective bargaining coverage (the proportion of employees whose pay and conditions are set through collective bargaining) at 54.0%. 29 However, this figure is from 2018 and there are more up-to-date (and lower) figures available from both the national statistical office (Statisches Bundesamt) and the government-backed Institute of Employment Research (IAB).

The two sources collect the figures in slightly different ways, but the outcome is similar, showing that around half of all German employees are covered by collective bargaining. The national statistical office estimates that 49% of employees are in workplaces covered by collective bargaining (figures for 2022); 30 the IAB figures show 50% of employees in workplaces covered by collective agreements (figures for 2023). 31

The bulk of those covered by collective bargaining have their pay and conditions negotiated at industry level between individual trade unions and employers' organisations. And this remains the central arena for setting pay and conditions in Germany. Examples include the metal and electrical industry agreement, which covers 3.6 million employees and the public sector agreement for central and local government, which covers 2.9 million, as well as much smaller industry agreements, such as the paper production industry, which covers just 34,900. 32

Separate agreements between trade unions and specific companies are less common, although there are some exceptions (such as the agreements covering the motor company Volkswagen, the main rail operator Deutsche Bahn and the main postal company Deutsche Post). Company agreements, including with smaller companies, are found more frequently in the former East Germany than in the former West (see below).

Unlike in some other countries, in Germany there is no bargaining at national level covering the whole of the economy or setting targets for lower-level negotiators. The main union confederation, the DGB, does not generally have a mandate to negotiate. (One exception is the agreement covering 700,000 agency staff, where the DGB coordinates negotiations with a group of individual unions.)

This structure, where industry-level agreements dominate, is reflected in figures from both the national statistical office and the IAB (see Table). The national statistical office shows 41% of employees covered by industry-level agreements and 8% covered by company agreements, while the IAB figures show 42% covered by industry-level agreements and 8% covered by company agreements.

Proportion of employees covered by collective agreements:

Level of bargaining	National statistical office 2022	IAB 2023
Industry	41%	42%
Company	8%	8%
Not covered	51%	51%
Total	100%	100%*
* The figures do not add up to 100% due to rounding

The IAB figures also show that collective agreements have an influence beyond those directly covered by them. The managers who completed the survey, on which the IAB figures are based, said that the terms and conditions for half (51%) the employees not covered were oriented on industry-level agreements.

Industry agreements are typically negotiated at regional rather than national level. As a result, there may be slight variations between regions. However, the main elements of the agreements, particularly the size of the pay increase, will normally be the same across all regions. The main exception is the former East Germany where some recent agreements have negotiated improved pay and/or conditions in the East to close the long-standing gap between pay and conditions in the East and West. 33

This system, with collective bargaining primarily taking place at industry level rather than at the workplace, has traditionally been seen as one of the strengths of the German system. It has the potential to keep conflicts on pay and conditions at industry level, between the unions and the employers’ associations, while at workplace level, individual employers and workplace employee representatives – the works councils (see Workplace representation) – can develop more cooperative relations.

Works councils are not legally able to negotiate collective agreements. They can, however, reach agreements with individual employers on issues not covered by collective agreements, and there are a whole range of topics such as employment security, the organisation of working time, rules on internet use or working from home, where works councils have reached agreements with local employers. These include some aspects linked to earning, such as bonus rates, performance-related pay and pay supplements, like long-service payments (see Workplace representation).

The figures from the national statistical office indicate that 9% of employees are covered by an agreement reached with their works council, even though they are not covered by a collective agreement.

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Variations in collective bargaining coverage

There are substantial variations in collective bargaining coverage in relation to sector, industry, workplace size and location.

Employees in public sector and not-for-profit organisations are much more likely to be covered by collective agreements than those in the private sector. The IAB figures show 98% of employees in public administration are covered (83% by industry-level and 15% by organisation-level deals), while in other largely public sector areas, like education (68% overall, 60% industry-level and 8% organisational-level) and health and social care (57% overall, 41% industry-level and 16% organisational-level) coverage is also above average. As it is in not-for-profit organisations, where coverage is at 64% (49% industry-level and 15% organisation-level).

In the private sector, the coverage figures are lower, 42% overall (35% industry-level and 7% company-level).

There are also differences between industries, where the national statistical office has a more detailed breakdown. Its figures show that other than public administration and education, the highest levels of collective bargaining coverage are in energy supply (85% overall, 62% industry-level and 23% company-level), finance (75% overall, 70% industry-level and 5% company-level), mining and quarrying (62% overall, 25% industry-level and 37% company level) and water and sewage (62% overall, 51% industry-level and 11% company-level).

The lowest levels of coverage are in hospitality (20% overall, mostly at industry level and with too few to calculate at company level) and in the arts and entertainment (21% overall, 18% industry-level and 3% company-level).

In manufacturing, 51% of employees are covered (41% at industry level and 11% at company level. Rounding explains why the figures do not add up to 100%.)

Larger workplaces are more likely to be covered by collective bargaining than smaller ones. Figures from the IAB show that in workplaces with four or fewer workplaces, only 15% of employees are covered by a collective agreement, and in those with five to nine employees only 21%. However, in workplaces with 101 to 200 employees, the proportion of employees covered rises to 40, and, in workplaces with more than 200, it goes up to 62%.

There are also important differences between the former East and the former West Germany. Firstly, employees in the former West Germany are more likely to be covered by collective bargaining, with 51% coverage in the West and 45% coverage in the East. Secondly, company-level agreements are more common in the East than in the West, with 14% of employees covered by company-level bargaining in the East and 7% in the West. As a result, industry-level bargaining is much less important in the East (31% of employees) covered than in the West (44% of employees).

Extending agreements

In many countries, high levels of collective bargaining coverage are the result of the widescale use of “extension mechanisms” that apply the results of collective agreements beyond the signatory parties to all employers (and employees) in the industry concerned. However, this is not the case, in Germany, where, although there are legal extension mechanisms, they are not widely used.

The traditional way to extend collective agreements has been through a government statement declaring them to be generally binding. 34This must be agreed by a joint union/employer body, and, in 2014, the previous requirement that the agreement to be extended should cover at least 50% of employees was removed and replaced by a requirement that the extension should be “in the public interest”. However, the extension must be proposed by both the employers and the union, and, with employers generally opposed to extensions, which they argue should only be used in exceptional circumstances, 35 very few agreements are declared generally binding. In 2024, only 219 of the approximately 87,000 registered collective agreements, which cover a wide range of issues other than pay, had been declared generally binding. 36

From the 1990s onwards, legislation initially introduced to deal with the low wages often paid by non-German firms employing their own nationals in Germany (posted workers) has provided a second route. 37 This legislation gives the labour minister the power to extend collective agreements and to set minimum rates in industries where there are no collective agreements if a specially appointed commission decides this is appropriate. However, to be extended in this way, agreements must apply to the whole country, and only parts of the agreement, primarily covering minimum rates and some holiday arrangements can be extended. Here too, relatively few agreements have been extended. In April 2024, minimum rates were set on the basis of collective agreements in six industries, training, roofing, meat processing, cleaning, scaffolding and painting, as well as in social care, where they are set by the ministry based on recommendations from a commission. 38

The government can also use the extension mechanism to set minimum rates for agency workers under other legislation. 39 However, although this has been used in the past, no minimum rate was set in 2024.

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Allowing local variations

Collective agreements are legal binding on those who sign them. Thus, employers are obliged to pay at least the rates agreed by the employers’ association to which they belong (unless they have previously opted out from doing so – see Trends in collective bargaining). Under the terms of the Collective Bargaining Act, individual employers can only vary the terms of the industry agreement when the change is “favourable to the employees”. 40 A survey of the situation in 2015 found that 54% of workplaces paid above the rates set in the industry-level agreement applying to them. 41

However, many industry-level agreements contain clauses known as “opening clauses”, which allow lower-level negotiators, typically including the works council, to negotiate arrangements which are less favourable to employees than those set out in the industry-level agreement.

These clauses, which allow local negotiators to take account of the particular circumstances of their employer, are seen as important way of providing flexibility to the system. One well known example was the Pforzheimer agreement, signed by IG Metall in 2004, which in 2008 was integrated into a more general collective agreement on job security. This permits the works council to agree reductions in hours and pay on a temporary basis in order to avoid redundancies.

Some pay agreements also include opening clauses to allow works councils, often with the approval of the unions, to take account of the particular circumstances of their company. For example, the 2018 metal industry settlement, covering 3.5 million employees, allowed a €400 cash payment due in 2019 to be delayed, reduced or completely eliminated in individual companies facing severe difficulties. And the 2022 the settlement for the chemical industry covering around 600,000, which provided for a 3.25% increase in pay rates in both January 2023 and 2024, said that both these increases could be delayed for up to three months where companies were in financial difficulties.

The 2015 study, quoted above, which looked at the extent to which workplaces paid above the industry-level rates, also looked at the extent to which opening cluses were used. It found that 21% of workplaces covered by collective agreements had made use of opening cluses, with larger workplaces and those in manufacturing more likely to do so. 42 Almost a third (31%) of workplaces with 1,000 or more employees had made use of opening clauses and 28% of workplaces in manufacturing and mining.

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Who negotiates?

Negotiations take place between the union and the appropriate employers' federation for industry-level agreements, and between the union and the employer at company level.

Industry-level claims are normally drawn up by the union’s collective bargaining committee for that industry, which brings together leading lay representatives in the industry, and agreed by the union at national level. (Claims are clearly influenced by the claims and settlements in other industries, but there is no coordinated cross-union bargaining strategy.) A smaller negotiating committee leads the negotiations for the union and the results of the negotiations with the employer are reported by to the collective bargaining committee for endorsement.

A typical pattern for industry-level agreements, which are often formally regionally based, is that negotiations will be concentrated in one region, perhaps the region where the union is strongest, and the settlement reached there, the so-called “pilot agreement”, will be taken up in all the other regions.

There are no specific rules on union representativeness in Germany, unlike in some other countries, but in order to be a party to an agreement a series of court judgements have established that the union must have the capacity to negotiate (be “tariffähig”). As well as meeting more formal conditions such as having a constitution which allows them to negotiate, unions must also show that they can be effective and put the other side under pressure, as indicated by membership and organisational strength. In the past the courts have found that some of the unions in the Christian CGB do not have this capacity and that agreements they have signed are invalid. The best-known example of this was the Christian union for agency workers, CGZP, which was found not to have the capacity to negotiate in December 2010. 43

Until fairly recently one of the basic principles of bargaining was that an employer could only be covered by one agreement. Only in a few exceptional cases, were specific occupational groups, such as doctors, pilots or locomotive drivers, with substantial bargaining power, able to negotiate separate agreements just for them. However, in a judgment in June 2010 the labour court ruled that while an individual could only be covered by one agreement, several agreements could coexist within the same company. Fearing that this could lead to a greater fragmentation of bargaining, the government introduced new legislation in 2015, which provided that where there was a conflict between competing unions, it would be the agreement signed with the larger union at the workplace that would be valid. 44

This legislation was challenged in the Federal Constitutional Court by some of the non-DGB unions, who argued that it breached the right of freedom of association. The court ruled in 2017 that the legislation broadly complied with the constitution but needed some amendments. Changes were therefore introduced at the end of 2018, which provided some protection where the interests of the group represented by the minority union were not “seriously and effectively addressed”.

A further claim by the smaller unions to the European Court of Human Rights against the terms of the legislation failed in July 2022.

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Industrial action

There is no legislation setting out the legal rules for strikes in Germany. These have been developed through decisions of Federal Constitutional Court and the Federal Labour Court, producing a series of principles which determine the legality of the action taken in an industrial dispute. 45 To be legal a strike must:

• be called by a trade union in line with its own rules (individual groups of workers cannot simply stop work);
• have an aim which can be achieved through collective bargaining (strikes aimed, for example, at changing government policy would not be considered legal);
• take place following the expiry of the “peace obligation” which lasts as long as the previous agreement is in force;
• be the last resort – “ultima ratio”; (unions call only use strikes when they consider that other methods of reaching agreement have no prospect of success); and
• be proportionate both in terms of their effect on the employer and general welfare (although the courts have recognised that by their very nature strikes are and must be damaging on the employer and potentially on wider society if they are to have the necessary effect).

As there is no legislation the courts must decide issues taken to them in the light of these general principles taking accounting of the particular circumstances of each case.

Union rules (not legislation) require a majority of members to back action (typically 75% of those eligible to vote) before a full strike can go ahead. This does not apply in the case of warning strikes, which are brief stoppages and are typically called to increase pressure on employers during once the period of the agreement has ended but while negotiations are still going on.

There is no general obligation to use a mediator, although they may be used if both sides agree. This was the case, fo example, in negotiations on the agreement for the construction industry in 2024, when the union, IG BAU asked for mediation. The employers agreed to this but rejected the mediator’s proposal; the union responded with warning strikes and finally settled on a deal that was slightly better that that proposed by the mediator.

As the commentary on the figures from the national statistical office notes, strikes are “rather rare” in Germany, with an average of 14 days per thousand employees lost through industrial action in 2023, although this figure was higher than most recent years.

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Length and timing of agreements

Agreements are signed throughout the year and those covering pay now normally last for around two years. The average length of agreements signed in 2023 was 23.3 months. Just 3.4% of employees were covered by an agreement lasting 12 months or less, while 86.2% were covered by an agreement lasting 24 months or more. 46

Agreements covering other issues have a longer life – perhaps five years or longer, while some go on until one side wishes to change them and gives the required period of notice.

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Subjects covered in agreements

German collective agreements regulate a wide range of issues. Apart from pay, agreements also deal with issues such as shiftwork payments or pay structures, working time, the treatment of part-timers and training.

Typically, in any industry there will be an agreement dealing with pay and a framework agreement which deals with issues such as working time, appointment and dismissal, premium payments for night and shift work, holidays and sick pay. There may also be separate agreements on topics such as the treatment of older workers. All of these are likely to be present in several regional variants, although other than between East and West, the differences between them are likely to be small.

Trends in collective bargaining

The German collective bargaining system has come under pressure as the coverage of collective agreements has fallen. The IAB figures show that the proportion of all employees in Germany covered by level agreements fell from 79% in 1996, when the figures were first collected to 50% in 2023. Looking at just the private sector, the percentage fell from 76% to 42% in the same period.

The fall has been continuous. As recently as 2013, 58% of all employees and 51% of private sector employees were covered by collective bargaining.

The main decline has been in the coverage of industry level agreements. Apart from a sharp decline between 1996 and 1998, when the coverage of company agreements fell from 12% to 9%, the coverage of company agreements has remained consistent between 8% and 10% (9% and 7% in the private sector.

The coverage of industry-level agreements has dropped much more sharply, from 67% in 1996 to 42% in 2023. (The figures for the private sector are even worse, down from 63% in 1996 to 35% in 2023.)

This downward trend is the result of several factors. In part, as a recent study by the IAB found, it is a consequence of changes in the structure of the German economy, with a shift away from manufacturing towards services and the fact that new companies emerge, and existing ones disappear. 47 (New companies are less likely to be bound by industry-level agreements than existing ones.) The IAB also emphasises the impact of the decline in the number of workplaces covered by a works council (see Workplace representation), as workplaces with a works council are more likely to retain industry-level collective bargaining.

However, the IAB study shows that at least half the decline in bargaining coverage is a result of other factors.

Other studies have suggested that a key factor is declining employer support for collective bargaining, shown, for example, by the fact that many employers have left employers’ federations, or alternatively have stayed in them in them without being bound by the agreements they sign (so-called OT membership). 48

With only around half of all employees covered by collective bargaining, Germany is well under the 80% threshold, below which, under the EU minimum wage directive, countries are obliged to draw up an action plan to improve collective bargaining coverage. 49

The German government elected in 2021 was committed to strengthening collective bargaining, under the coalition agreement signed between the governing parties. The planned measures included:

• the introduction of legislation giving preference in public procurement at central government level to companies covered by collective agreements;
• ensuring that collective agreements continue to be valid after employers leave employers’ associations, making leaving them less attractive; and
• giving unions digital access to the workplace.

However, by September 2024 this had still not been introduced.

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Minimum wage

Following sustained pressure from the unions, Germany has had a minimum wage since 1 January 2015. A minimum wage commission, made up of representatives of the unions and employers, with external experts in an advisory capacity, makes proposals for increases in the rate, taking account of increases in collectively negotiated pay rates. These proposals are presented to the government which takes the final decision.

On 1 October 2022 the newly elected German government by law increased the minimum wage to €12 an hour. This was a political decision, not based on the recommendation of the minimum wage commission, and it took the rate to around 60% of the median wage, one of the indicative reference values included in the EU’s minimum wage directive. Since then, the minimum wage has risen in line with the minimum wage commission’s recommendations.

The national statistical office estimates that 14.8% of employees were affected by the increase to €12 an hour in October 2022, 8.1% in workplaces covered by collective bargaining, but 21.1% in workplaces not covered by collective bargaining agreements.

Joint employer/union body at national level

Germany does not have a joint employer/union body similar to the economic and social councils found in many other EU states.

Works councils provide representation for employees at the workplace, and they have substantial powers – extending to an effective right of veto on some issues. Although not union bodies, union members normally play a key role within them.

The basic structure

There is a clear legal basis in Germany for the workplace representation of employees in all but the smallest companies. Under the Works Constitution Act (Betriebsverfassungsgesetz), a works council can be set up in all private sector workplaces with at least five employees. (There is a system of staff councils in the public sector which have a broadly similar structure.)

Works councils have substantial rights in the workplace ranging from the right to be informed on key decisions by the employer to a right to block employer actions in some areas. Works council members have protection against dismissal and rights to time off and training.

Other forms of non-statutory employee representation, where they exist, do not have these rights.

The law in Germany does not provide a separate statutory structure for union workplace representatives.

The extent of workplace representation

In practice, most workplaces do not have works councils. Figures from the government-backed Institute for Employment Research (IAB) show that, in 2023, only 7% of all workplaces and 10% of all workplaces with five or more employees had a works council or a comparable public sector body. 50 However, large workplaces are much more likely to have works councils than small ones – 73% of workplace with more than 200 employees had a works council or similar public sector body, compared with just 16% in workplace with 21 to 50 employees. As a result, in 2023 works councils covered 41% of all employees and 43% of those in workplaces with at least five employees. In the private sector alone the figures are lower, 34% of all employees and 36% in workplaces with at least five employees.

The IAB surveys also show that the proportion of employees in workplaces with works councils or comparable public sector bodies has fallen in recent years, dropping from 57% in 1996, when the figures were first collected, to 43% in 2023. This is a smaller decline that that for collective bargaining, although the fall in recent years has been more pronounced, dropping from 44% in 2020 to 41% in 2023.

Some workplaces have other forms of non-statutory employee representation, and they are more common than works councils in workplaces with 20 or fewer employees. The IAB figures indicate that, in 2023, 14% of all employees were covered by these other forms of employee representation.

There are no figures on the extent of separate union workplace structures, but in many workplaces a majority of works council members are active in their union.

Figures from Eurofound’s 2019 European Company Survey provide a comparison with other EU states. They show that 15% of German establishments with at least 10 employees had some form of official employee representation in 2019. This is around half the EU27 average of 29%. As elsewhere in Europe, larger organisations are much more likely to have such a structure than smaller ones. Among establishments with more than 250 employees, 76% across the EU had some form of employee representation in 2019. In Germany, the figure was 67%. Eurofound reported that in Germany works councils accounted for “a majority, if not all” of the employee representative bodies found. 51

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The role of unions

Works councils are not directly trade union bodies. But the unions have a major influence on their operation. Unions have nomination rights, often encourage the initial establishment of works councils, can be involved in ensuring the election is run fairly and provide ongoing support and training to works council members.

As a result, a high proportion of the members of works councils are also union members. Analysis of the works council election results in 2014, on behalf of the Hans-Böckler-Stiftung (HBS), which is close to the unions, found that around three-quarters of the members elected were members of unions in the DGB (the main union confederation), although there were variations between industries. 52

The HBS has not subsequently produced a similar study on more recent works council elections, but a smaller study by Institut der deutschen Wirtschaft, which is close to the employers, found that, on average 41% of works council members elected in 2022 were union members. The proportions varied between 50% in production industries, including manufacturing, and 12% in the service sector. 53 More than half (54%) of all works councils had at least one member from a DGB union, and 4% had at least one member from a union outside the DGB.

The law in Germany does not provide a separate statutory structure for union workplace representatives, generally known as Vertrauensleute. However, some unions make provision for them. Their rights and duties are normally fixed by the unions, although in some industries their position is also regulated by collective agreements. IG Metall, Germany’s largest union, describes them as working with the elected structures (works councils and elected youth representatives), recruiting new members, improving union organisation at work and mobilising members around wage demands. 54

In an ideal situation they exist alongside the works council. In practice there is often no separate specific trade union structure, and the members of the works council will take over their tasks.

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Numbers and composition

A works council can be set up once there are five permanent employees in a workplace, with the size increasing with the number of employees (see Table). The employee numbers are based on a headcount of those allowed to vote, so the reduction in the voting age from 18 to 16 in 2021 had an impact on the numbers in some workplaces. There is no difference between part-time and full-time staff.

Size of works council in relation to employees

Number employed	Number of works council members
5-20	1
21-50	3
51-100	5
101-200	7
201-400	9
401-700	11
701-1,000	13
1,001-1,500	15

From 1,501 to 5,000 employees the number in the works council increases by two for every 500 employees or part thereof. From 5,001 to 7,000 employees there are two extra for every additional 1,000. Workplaces with 7,001 to 9,000 have 35 members on the works council, and, in workplaces with more than 9,000 employees, there are two additional works council members for each additional 3,000 employees.

All employees are covered by the works councils with the exception of senior management, for whom separate representation is provided (see Other statutory representative structures), and the owners of the business and their close relatives. In Germany, works councils are purely employee bodies. There are no members representing the employer. Manual and non-manual employees should “as far as possible” be represented in proportion to their numbers in the workforce. Since 2001, agency workers who have worked in the workplace for at least three months have been entitled to vote, and, in March 2013, the labour court ruled that they should be counted in the numbers employed. This potentially increases the size of the works council, as well as the numbers of those entitled to time-off (see Time-off and other resources).

There is also a requirement that the sex which is in a minority in the workforce must be represented in proportion to its presence in the workforce on all works councils with three or more members. The aim of this change, which was introduced in 2001, was to increase the number of women in works councils and research on works council elections since then suggests that it has had some effect. The proportion of women has increased since then, although differences in the way the figures have been collected make comparisons. Based on surveys undertake by the union-linked Hans-Böckler-Stiftung, the proportion of women in works councils has increased from 23% in 2002 to 30% in 2022. 55

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The operation of the works council

The works council chair, elected by the whole works council from amongst its members, plays a key role. His or her legal functions include calling the meetings and setting the agenda.

The law also requires that in works councils with nine or more members (above 200 employees) a separate works committee should be elected from the works council to deal with day-to-day business. The works council chair and deputy chair are automatically members of this committee. If the works council wishes it can also set up other sub committees.

In companies with more than 100 permanent employees, the law requires the setting up of another body, the economic committee (Wirtschaftsausschuss). This committee is consulted on economic and financial issues. But it is chosen by the works council, and in certain circumstances the works council can decide to do without an economic committee and directly take over its functions.

The legislation does not set out how often the works council should meet. However, it does state that the works council should meet the employer “at least once a month”. It also requires the works council to adopt its own standing orders which set out its procedures. In practice, weekly meetings seem common.

Other statutory representative structures

Health and safety committees should be set up in all workplaces with more than 50 employees and in some with between 20 and 50 employees. Members of the works council take part in the meetings of the safety committee (see Health and safety section).

There is also separate representation for young people, the Youth and Trainees Representative Body (JAV), which is to be set up when there are at least five employees under the age of 18 or trainees under the age of 25, and when there is already a works council. In 2021, just over a third (36%) of works councils in companies with 20 or more employees had a Youth and Trainees Representative Body, although there were more common in larger workplaces, with two-thirds (67%) of those with 500 or more employees reporting their presence. 56

In addition to the works council structure, there is separate provision for the representation of senior management. Provided there are 10 senior managers, either in the plant or in the company, they can choose to elect a body to represent them. This can have between one and seven members, depending on the number of senior managers involved.

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Election and term of office

All employees have a right to vote, apart from the senior executives and other excluded groups, such as the owners. (The minimum voting age in works council elections was reduced from 18 to 16 through new legislation, aimed at modernising aspects of works operations, in 2021. 57)

Generally, those who have the right to vote also have the right to stand as candidates provided that they have at been employed in the workplace for at least six months (less if the workplace has not been existence for that long). The exceptions are those aged under 18 and agency workers (with at least three months’ service at that employer). Although these two groups have the right to vote, they do not have the right to stand as candidates.

Candidates are nominated either by a union, provided it is represented in the workplace, or by a set number of employees with voting rights, with the number of supporters required varying according to the number employed. Following the 2021 legislation, the number needed is zero for workplaces with 20 or fewer employees (individuals can put themselves forward), two for workplaces with between 21 and 100, and 5% of in workplaces with more than 100 employees. In all cases, the support of 50 employees is sufficient to nominate candidates, irrespective of the number of employees.

The legislation states that the works council should “as far as possible” be made up of employees coming from the various organisational units within the workplaces as well as the different employment categories – for example, manual and non-manual.

The procedures for the election are set out in the legislation, which was revised in 2021. Depending on the number of employees, the works council is elected using either the standard procedure or a simplified procedure.

Under the standard procedure, works council members are elected on the basis of competing lists, using a system that distributes seats approximately proportionately to the number of votes cast for each list. Candidates are listed in order of preference by the union or group of employees making the nomination and are elected starting at the top of the list and working down.

Under the simplified procedure, seats are allocated based on votes for individual candidates, with the candidates with the highest number of votes being elected.

The simplified procedure is more straightforward, and it allows the whole process to be completed within a week rather than over six weeks, as with the standard procedure.

Under both procedures there are safeguards to ensure that sufficient seats go to the sex which is in a minority in the workforce.

Workplaces with between five 100 employees must use the simplified procedure; those with more than 200 must use the standard procedure and those with between 101 and 200 can chose between the two. (These thresholds were raised to their current levels by the modernisation legislation introduced in 2021.)

The election is run by an electoral board, made up of employees, which is normally either appointed by the existing works council or, if there is no works council, elected at a works meeting of all employees. Unions with members at the workplace also have the right to send an employee who is a union member to the electoral board’s meetings.

The elections take place every four years, and although a new works council can be established at any point when the conditions are met, most work council elections take place between the start of March and the end of May in the same year on a four-yearly basis. The most recent round was in 2022.

Trade union representatives (Vertrauensleute), where they exist separately, are chosen in line with individual union rules or guidelines, normally by election at the workplace.

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Tasks and rights

Works councils exist to ensure that some of the key decisions at the workplace are not taken by the employer alone but involve representatives of the workforce. However, the works council cannot consider just the interest of the employees. Its legal basis is to work together with the employer "in a spirit of mutual trust ...for the good of the employees and the establishment".

At the same time the law recognises that there will inevitably be conflicts between the interests of the employer and the workforce and also makes it clear that trade unions have a separate duty to protect the interests of their members.

The law provides the works council with a range of rights, which can be divided into four main categories:

• information – where the works council must be informed;
• consultation – where the works council’s views must be listened to;
• opposition and refusal of consent – where the works council can block the employer’s plans, although this opposition can be set aside by a decision of the labour court; and
• enforceable co-determination – where the works council must agree before the employer can go ahead, unless the employer can persuade the “conciliation committee” (Einigungsstelle) to accept his or her proposals.

The most effective of these rights is enforceable co-determination, sometimes called “genuine” or “equal” co-determination. The conciliation committee, which determines the issue if the works council and the employer cannot agree is composed of representatives of both employer and works council, who may be from inside the workplace or external, with a neutral chair, often a judge from the labour court. The costs of the committee are borne by the employer, and the works council can make its own proposals, which must be considered in the same way as proposals coming from the employer. An attempt is first made to resolve the issue without the neutral chair voting, but, if there is a tie, the proposals are voted on a second time and the chair must vote. Once a decision has been reached, it is binding on both sides.

A survey of works council members in 2015 found that the conciliation committee procedure was used relatively rarely, with only 6.5% saying that they had used it in their workplaces in the previous 12 months. 58 In general, it seemed that often the threat of referring a disputed issue to the conciliation committee was sufficient to get the employer to agree.

The precise rights of the works council vary from area to area. The rights are strongest in the social area – organisation of hours, holidays, methods of payment and so on – and weakest in relation to economic issues. This reflects the overall principle that companies should be as far as possible free to take their own decisions in this area.

Economic issues

On economic issues, the works council’s main rights are to be informed and, to a lesser extent, be consulted, although there are some issues even here which are subject to enforceable co-determination.

In companies with more than 20 permanent employees the employer has to report to staff quarterly on the financial situation and progress of the company. This can be done either in writing or orally but only after previous coordination with the works council. There is also a general duty on the employer to provide the works council with the “full and timely information” necessary for it to “discharge its duties”, as a well as a right to have access to the documentation it needs. This includes a specific right of the works council to have access to the company’s payroll lists.

Companies with more than 100 permanent employees must set up an economic committee (Wirtschaftsausschuss), whose members are employees chosen by the works council and at least one of whom must be a member of the works council. This committee receives information from the employer and reports to the works council on the financial affairs of the company. These include:

• the economic and financial situation of the company;
• the production and marketing situation;
• production and investment programmes;
• rationalisation plans;
• production techniques and work methods, especially the introduction of new work methods;
• issues concerning the business’s environmental policy;
• the reduction of operations in or closure of the business or parts of the business;
• the transfer of the business or parts of business;
• the amalgamation or splitting-up of the business or parts of the business;
• changes in the organisation or objectives of business;
• the takeover of the company, if control is thereby obtained; and
• any other circumstances and projects that may materially affect the interests of the employees of the company.

The information provided must be comprehensive and in good time. If the economic committee considers this is not the case, and the works council and the employer cannot agree a solution, the issue can be referred to the conciliation committee (see above) for a binding decision.

When future plans are being considered, the works council’s rights go beyond information to consultation, and sometimes even to enforceable co-determination. The works council must be informed and consulted on any plans involved the following

• the construction, alteration or extension of works, offices and other premises belonging to the establishment;
• technical equipment;
• working procedures and operations; or
• employment.

As well as being informed in good time of what is planned, in particular the potential impact on employees, the consultation should take place in a way which ensures that the suggestions and objections of the works council can be taken into account in the planning.

The legislation states that the employer and works council should take into account the need to adapt the job to those doing it rather than the other way around, but where it appears clear that this is not the case, or special burdens are being imposed on employees, the works council can ask the employer to take further action to eliminate, reduce or compensate for them. If these further actions are not agreed between the two sides, the issue is subject to enforceable co-determination and is referred to the conciliation committee.

It is not just in these areas that the works council has greater rights when changes are planned. In companies which normally have more than 20 permanent employees, the employer must inform and consult the works council when changes are planned which may have a negative impact on the workforce. The measures covered by this requirement to consult are:

• a reduction of operations or closure of the whole or important parts of the workplace;
• a transfer of all or important parts;
• amalgamation with other workplaces or splitting it up;
• important changes in organisation, purpose or equipment; and
• the introduction of entirely new work methods and production processes.

In larger companies, those with more than 300 employees, the works council can be helped to respond to these issues by an external consultant (see Time-off and other resources).

Faced with these planned changes, the works council will normal have a two-fold response.

First it will seek to reach agreement on a so-called “reconciliation of interests”, which deals with the implementation of the changes the employer plans with the aim of avoiding or limiting any disadvantages to the employees, second it can agree a so-called “social plan”, which seeks to compensate the employees for these disadvantages.

The agreement on the reconciliation of interests, which is likely to cover issues such as when and how the changes will take place, is a voluntary agreement, in other words the employer cannot be compelled to accept it although both sides can ask for mediation. However, the social plan, which typically deals with issues such as compensation for redundancy, rights to retraining, earnings protection in the case of job changes, and payments for additional travelling costs, falls under the heading of enforceable co-determination. In other words, the conciliation committee can impose an agreement if the employer and the works council cannot agree.

Staff planning and training

On staff planning and training, which is both an economic and personnel issue, the employer is required to inform the works council of overall the staffing needs and discuss these with it. The works council has a particular role in promoting gender equality and it can also make proposals, such as changing working hours, to enhance job security. The works council has a general right to be consulted on training and the re-training of workers is subject to enforceable co-determination.

Decisions on the implementation of training, such as the practical experience of trainees, the selection of trainees and the introduction of workplace examinations, are also subject to enforceable co-determination, although not whether training takes place at all. The works council also can veto the appointment of trainers if it thinks they are unsuitable.

Health and safety

On health and safety, the works council a general responsibility to try to ensure that the health and safety provisions and accident prevention measures are observed and a right to participate in health and safety inspections and to be given the necessary information. It must also be consulted on the appointment of safety delegates, (Sicherheitsbeauftragte), who are individual employees concerned with health and safety, appointed by the employer (see Health and safety representation).

Individual personnel issues

On individual personnel issues, appointments, grading and re-grading, transfers and dismissals, the employer must inform the works council before acting, and the works council can withhold its consent (appointments, grading and re-grading and transfers) or oppose the planned action (dismissal). However, the works council can only do this in certain specific circumstances, such as where the proposal clashes with existing agreements or guidelines, would lead to unfair treatment for the individual concerned or (in dismissal cases) where the employer has failed to take sufficient account of social issues. If the employer does not accept the works council’s position, he or she can take the issue to the labour court, which can overrule the works council’s opposition.

The works council has enforceable co-determination rights where the employer wants to draw up guidelines for future action in these areas, for example selection criteria for redundancy. However, except in larger workplaces (more than 500 employees) the employer cannot be required to draw up guidelines of this sort.

Individual grievances can also be taken to the works council, and, where the works council takes them up, and cannot reach agreement with the employer, the issue goes to the conciliation committee

Personnel issues affecting the whole workforce

The works council has the most extensive rights in relation to a range of day-to-day personnel issues affecting the whole workforce. On these issues, the works council has enforceable co-determination rights. In other words, if employer and works council cannot agree on any of these topics, the question is decided by the conciliation committee. The issues are:

• works rules – covering issues like works clothing, work passes and the methods used to record attendance;
• daily starting and finishing times. including breaks and issues like shift working, flexi-time and stand-by and call-out arrangements;
• any temporary reduction or extension of normal working hours, particularly overtime;
• the time, place and the form in which workers are paid (although this is often set in collective agreements);
• setting the general rules for taking holidays, as well as fixing the time when individual employees take leave, if there is no agreement between the employer and the employees concerned;
• the introduction and use of technical equipment, like cameras or tracking devices, designed to monitor the behaviour or performance of the employees;
• arrangements to prevent accidents and occupational ill-health within the framework of legislation or regulations;
• the form and organisation of social provision for employees – including social funds as well as services like canteens, works buses and children’s nurseries – the works council cannot require them to be set up or to continue, but, if they exist, their operations are subject to codetermination ;
• the rules for assigning and vacating and the terms of use of works accommodation, where it exists;
• pay arrangements in the workplace, including elements such as commission payments, hardship supplements, long-service payments and reimbursement of travelling costs, where these are not fixed by collective agreements;
• bonus rates and performance-related pay;
• the rules for workplace suggestion schemes; and
• the rules for group work, where employees work together to perform a complex task largely autonomously.

In each of these 13 areas the works council does not need to wait for the employer to act. It also has the right to make its own proposals to which the employer must respond with the aim of reaching agreement.

The contents of staff questionnaires and the personal data held on individual employees for assessments are two other areas subject to enforceable co-determination.

The fact that all these issues can go to the conciliation committee if there are disputes means that on many of them the works council will be able to reach written agreements with the employer. A survey in 2017 found that, on average each works, council had 23 works agreements. 59 And a later survey in 2021 found that the top five topics covered by these agreements were: working time accounts (77% of workplaces had them), data protection (76% of workplaces), holiday rules (67%), overtime (63%) and health and safety/health promotion (62%).

By law, works councils should normally not be involved in collective bargaining on issues, such as pay or working time, which are dealt with by the unions. However, recently works councils have had a greater role in these issues, as some agreements include “opening clauses”, which allow the works council and local management to agree variations to the deal reached by the union and the employers’ association at industry level (see Allowing local variations).

Other rights and duties

As well as these rights, which generally relate to the employer’s plans, the works council has its own general rights and duties, which include ensuring compliance with existing legislation and collective agreements, making proposals to the employer for the benefits of the workplace and the employees and promoting gender equality, work-life balance, the integration of disabled workers, the employment of older workers, the integration of foreign workers, health and safety and the protection of the environment.

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Protection against dismissal

Works council members – as well as those setting up a works council (see below) – are protected against dismissal in most circumstances.

Works council members may not be dismissed for reasons, such as unsatisfactory personal behaviour or redundancy, which might lead to the dismissal of other employees. They may only be legally dismissed in two sets of circumstances:

• where their behaviour is such that the employer can no longer be expected to retain them in employment and for another employee would result in immediate dismissal – this is described as an “extraordinary dismissal” (außerordentliche Kündigung); or
• where their workplace or part of their workplace is being closed.

However, in both cases there are further specific conditions which must be met.

In the first case of an extraordinary dismissal, where another employee would normally be immediately dismissed, a works council member can only be legally dismissed if the works council itself agrees to the dismissal, or, if it fails to agree to it, the labour court accepts that the dismissal is justified. 60

In the second case, involving workplace closure, the situation is different, depending on whether all or only part of the workplace is being closed.

In the case of complete closure, a works council member can be dismissed legally, without the agreement of the works council, but only at the point when the workplace actually closes and not before.

Where part of the workplace is being closed, it is possible to dismiss a works council member legally, but only if the individual cannot be transferred to another department.

This protection for works council members lasts throughout their four-year period of office and for a further 12 months. This 12-month protection after ceasing to be a works council member also applies where an individual resigns before the end of their period of office.

Substitute members of the works council enjoy the same protection against dismissal, including the 12-month additional period, as full members, if they step in to replace a full member.

Protection against dismissal extends beyond works council members themselves, including those involved in setting up a works council, whose protection was extended through the modernisation legislation passed in 2021. However, this protection is less extensive that that for works council members and does not last as long.

Candidates for election to the works council, whether or not they are elected also enjoy similar protection against dismissal, which lasts from the point when they announce their candidature until six months after the announcement of the results.

Members of the Youth and Trainees Representative Body, which is to be set up when there are at least five employees under the age of 18 or trainees under the age of 25, and when there is already a works council, have the same protection against dismissal as members of the works council. In addition, they have the right to be taken on in full-time post, appropriate to the training they have received, when that training ends. The only exception to this right is when there are specific circumstances which justify them not being taken on, and the employer has given them notice of that fact at least three months before the end of their training.

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Time-off and other resources

Works council members must be given time off at their normal level of earnings to carry out their duties - such as attending meetings or giving advice. In workplaces with fewer than 200 employees, the details of this are not laid down by law. But in larger workplaces the law sets out the number of works council members who should be freed from their normal work (see Table).

Number of works council members freed from duties related to number employed

Number employed	Number of works council members freed from normal duties
5 to 199	Not regulated
200 to 500	1
501 to 900	2
901 to 1,500	3
1,501 to 2,000	4
2,001 to 10,000	1 extra for each additional 1,000 employees
Above 10,000	1 extra for each additional 2,000 employees or part thereof

In practice, not all works councils make full use of their time-off rights.

In the public sector, time of rights for members of staff councils are more limited. There must be at least 300 employees before an individual staff council member can be fully freed from their normal duties, and 601 employees before two members are fully released from their normal duties. The numbers increase with the number employed but more slowly than for works councils. 61 (These are the arrangements for those employed by the central government. There is separate legislation for other parts of the public sector.)

The employer must bear the costs of the works councils. This includes providing rooms, stationery, photocopying, computers and telecommunications costs. In certain circumstances the employer will pay for outside experts brought in by the works council. This must generally be agreed in advance and is not guaranteed. However, in companies with more than 300 employees, where the employer proposes to make changes that may have a negative impact on the workforce, the works council has a right to the assistance of an external expert.

In very large companies the works council, or the works council for the whole group, may have paid professional staff.

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Training rights

The Works Constitution Act provides works council members with the rights to time off at their normal level of earnings to take part in training connected with their activities on the works council.

However, the legislation distinguishes between two separate forms of this right. The first is the collective right of the works council to send works council members to training courses, set out in §37 (6) of the Works Constitution Act. The second is the individual right of works council members to undertake training, set out in §37 (7))

In the area of the collective right of the works council to send members for training, the legislation states that where the knowledge gained through “attendance of training and educational courses … is necessary for the activities of the works council”, works council members are entitled to paid time off to attend such courses. In addition, as the expenses arising out of the activities of the works council are paid for by the employer, all costs of such training, including the cost of courses, travel and accommodation are covered by the employer.

There is also no set time limit on the length of such courses or the number of courses that an individual can attend. Instead, the requirements are that:

• the training must be requested by the whole works council in a resolution;
• the knowledge to be acquired must be necessary (erforderlich);
• the timetable for training must take account of operational needs of the business; and
• the timetable for training must be given to the employer in good time.

The rules for individual works council members’ rights to take part in training courses are different. The individuals make the decision that they wish to take part – there is no need for a works council resolution. There is also no requirement for the courses to be seen as “necessary”. They must only have been recognised as “appropriate” by the regional authorities after consultation with the employers and the unions.

Works council members have the right to take part in up to three weeks of such training during their four-year period of office, and four weeks if they have been elected for the first time. However, although the employer must give the works council member paid time off, in contrast to the training under §37 (6) covering collective rights, the employer is not obliged to pay for the cost of the training itself. Works council members can be required to pay for the courses, travel and accommodation. 62

The consequence of this difference is that training provided as a consequence of the collective right of the works council to send works council members to training courses (as set out in §37 (6) of the Works Constitution Act) is, in practice, a much more important training right than the individual right of works council members to undertake training (set out in §37 (7)).

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Representation at group level

As well as works councils at workplace level, the German system provides for the creation of two other employee representation bodies at a higher level than the workplace. These are the central works council at company level (GBR) at company level and the group works council (KBR) at group level.

A central works council (GBR) must be set up if there is more than one works council in a company. Its members are not directly elected by the employees but chosen by the individual works councils within the company who send their members as representatives. One member should be sent from works councils with up to three members – equivalent to a workplace with up to 50 employees, and two members from works councils with more than three members, although a works agreement or a collective agreement can agree other numbers. The choice of those to be sent must take account of adequate representation of women and men.

The central works council has its own area of responsibility, which, in the words of the legislation is “to deal with matters affecting the company as a whole or two or more of its establishments, which the individual works councils are unable to settle within their establishments”. Individual works councils can also delegate items to the central works council.

It is also possible to set up a works council at group level, covering all the companies in a group. However, unlike the central works council, which must be established if there are several works council in a company, setting up a group works council, sometimes called a concern works council (KBR) is voluntary. It must be proposed by the existing central works councils, or works council if there is no central works council, and the resolution to approve setting up a group works council must be approved by subsidiaries in the group representing more than 50% of the employees on the group

Each central works council nominates two members to the concern works council (KBR) with provision for replacement members, taking account of adequate gender representation, and each member has votes equivalent to half the employees covered by the central works council he or she represents.

The group works council deals with issues which affect the group or several companies within the group, and which cannot be dealt with by the central works councils (GBR).

A high proportion of all works councils are in structures which also include central and/or group works councils. Research in 2019 showed that almost half of all works councils representing more than 20 employees are part of a structure involving a higher-level representative body. 63 One in six (17%) just have a central works council (GBR) above them, and another 4% have just a group works council above them, but almost a quarter (23%) are in a structure with both a central and a group works council (KBR).

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Employee representatives have a right to seats on the supervisory board of larger companies – one-third in companies with 500 to 2,000 employees, half in companies with more than 2,000.

The extent of board-level employee representation

Employees in larger share-based companies (500 employees or more) have representation on the supervisory board to which the day-to-day management of the company reports. This right applies both in a public limited company (AG) and a limited company (GmbH), as well as in some other company forms. It does not apply in “ideological companies” – companies whose purposes are primarily political, religious, educational or artistic, or produce news or comment.

The supervisory board can normally appoint and dismiss the main management board, and it reviews its performance. The supervisory board gives advice, participates in setting the company’s strategy, and is provided with financial and other information. The supervisory board also draws up a list of operations where its approval is required before they are undertaken. However, the supervisory board should not take on the functions of the management board.

The proportion of worker representatives varies from one third, in companies with between 500 and 2,000 employees, to 50%, in companies with more than 2,000 workers. Even in these larger companies, the shareholders can win any contested votes on the supervisory board, as the chair represents the shareholders and can cast a second vote in the event that a vote is tied. The one exception is the larger coal or iron and steel companies, where there is a neutral member of the supervisory board, in addition to equal numbers of employee and shareholder representatives. 64

A study for the Hans-Böckler-Stiftung (HBS) in 2023 found that there were 1,470 companies with between 500 and 2,000 employees where a third of the supervisory board members were employee representatives, as required by the legislation. In addition, there were another 68 companies operating in Germany under European legislation with one third board-level employee representation, and more than 50 who had chosen to introduce it. 65

There are fewer companies with equal representation of employees and shareholder, although these companies are larger. Figures from the HBS show that at the end of 2022 there were 655 companies in Germany with more than 2,000 employees, where employee representatives made up half the supervisory board. This number includes 209 AGs, 381 GmbHs, 45 operating under other German company legislation and 20 operating under European legislation. 66 This figure is slightly almost the same as in 2021 (656) and higher than five years earlier (635 in 2017) but below the record number of 767, record in 2002.

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Nomination and election of employee representatives

The nomination and election processes vary depending on the number of employees and whether the company is in the coal and iron and steel industries.

In companies with 500 to 2,000 employees, the employee representatives, who make up one-third of the total membership of the supervisory board, must be company employees. They are nominated by the works council or by at least 10% of the workforce or 100 employees if this is a smaller number. They are elected by all employees in a secret ballot.

In larger companies, above 2,000 employees, where half of the supervisory board is chosen by the employees, some of the employee representatives are nominated directly by the union or unions with members in the company. They are usually union officials. The others are company employees, although at least one of them must be a representative of the senior managers. The non-senior manager representatives are nominated by at least 20% of the workforce or 100 employees (excluding senior management). The senior manager representatives are nominated by the senior managers, who must put forward two candidates for the single position.

All of the employee representatives, including the employees, senior managers and the union officials, are elected by the whole workforce, either directly or, in larger companies with more than 8,000 employees, indirectly through workforce delegates.

The legislation sets out precisely the make-up of the supervisory board, which depends on the number of employees. There is always a single representative of senior managers, and the shareholders always have the same number of representatives as the employees, but the proportion of union nominated members varies depending on the size of the company, although there are always at least two (see Table). Typically, one of the external union representatives will be the vice-chair of the supervisory board.

Composition of the supervisory board in a company with more than 2,000 employees

Number of employees	Nominated by normal employees	Nominated by unions	Nominated by senior managers	Chosen by shareholders
	Elected by all employees
2,001 to 10,000	3	2	1	6
10,001 to 20,000	5	2	1	8
More than 20,000	6	3	1	10

In companies covered by the legislation for the coal and iron and steel industries, the standard arrangement is an 11-person supervisory board.

On the employees’ side this is made up of two employees (nominated by the works council) and two union officials (nominated by the union) plus an additional member chosen by the employee side, who may not be from a union or work in the company. There are five shareholder representatives, although as with the employees, one of them must not be directly involved. The final (eleventh) member of the supervisory is neutral and must be nominated by a majority of both sides.

The whole supervisory board is formally elected by the annual general meeting of the shareholders. However, this meeting must accept the employee side’s proposals. It is also possible to have 15-strong or 21-strong supervisory boards with a parallel composition.

Legislation was passed in 2015 to increase the proportion of women in leading positions in companies and public sector organisations. 67 It requires companies quoted on Germany’s main stock exchanges and companies whose supervisory boards included employee representatives, to set binding targets for increasing the number of women (formally the under-represented sex, but in practice women) in leading positions. Companies, which were both quoted on the stock exchanges and 50% of whose supervisory board members were employee representatives, had in addition to ensure that 30% of the supervisory board members were women from 2016 onwards. This legislation was strengthened in 2021.

In calculating this 30% ratio it is possible to take the employee representatives and the shareholder representatives together. However, if either side objects the ratios must be calculated separately, meaning that in this case each side must have at least 30% women.

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The rights of employee representatives

The employee representatives have the same rights and duties as other supervisory board members. Employee supervisory board members must not be discriminated against as a result of their membership of the board, and they must not be restricted in their work as supervisory board members. They are also entitled to reimbursement of their expenses and adequate training.

In the coal and iron and steel industries, the employee representatives have additional rights in the appointment of the labour director, who cannot be appointed against the wishes of the employee representatives. The labour director is responsible for personnel and employment issues.

Employee representatives on supervisory boards have the same term of office as those representing shareholders. This is limited by legislation to a period ending at the annual general meeting following four full financial years in office. As supervisory members are normally appointed at the annual general meeting when the financial year has already begun, this first part-year does not count towards the total and neither does the period between the end of the fourth year and the next annual general meeting. In effect, therefore, the period of office is five years.

European level representatives are chosen through the works council structure. However, for the European Company, there are rules which guarantee seats to trade union officials and – in the largest companies – representatives of senior management, both on the SNB and at board level.

European Works Councils

German members of the special negotiating body (SNB) for the EWC are chosen from the group works council, where such a body exists and covers all works councils in the group. If there are only central or ordinary works councils, or the group works council does not cover all works councils, then they are extended to cover workplaces not otherwise represented. 68

Employees representing senior management can be members of the SNB if chosen under this procedure. There is also a requirement for the members to reflect the male/female make-up of the workforce.

The procedure is the same for German members of an EWC set up under the fallback procedure in the annex to the directive. When there are at least five German members on an EWC set up in this way, the body representing senior management can also send a representative, who has speaking, although not voting, rights.

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European Company

German members of the special negotiating body (SNB) for the European Company are chosen by an election body which is the group works council, where such a body exists and only one company is involved. If there is no group works council, but only one German company involved, then the central or individual works councils are extended to cover workplaces not otherwise represented. If several German companies are involved, then the election body is made up of the group works councils of the two companies, or other works councils from the two companies if there are no group works councils. 69

Every third member of the SNB from Germany should be a trade union official and every seventh a representative of senior management. The members should also reflect the gender make-up of the workforce.

The situation is the same for the German members of the SE representative body set up under the fallback procedure, except that there is no provision for trade union officials or representatives of senior management. The legislation states that the representative body should be composed of employees of the European Company.

German representatives at board level are also elected in the same way, although this time the requirement that every third member from Germany should be a trade union official and every seventh a representative of senior management is reinstated.

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The works council (staff council in the public sector) has a key role in representing employees on health and safety issues. It sends representatives to the joint health and safety committee and its agreement is required in some areas, such as the appointment of the occupational physician (works doctor). There are also safety delegates, who are appointed by the employer.

Employee health and safety bodies

In the private sector, the works council (Betriebsrat) which can be set up in all workplaces with five or more employees has an important role in health and safety issues (see Workplace representation). In the public sector, the staff council (Personalrat) has a similar function. In addition, in larger workplaces (more than 20 employees) a health and safety committee (Arbeitsschutzausschuß) should be set up. This is a joint employer/employee body, which includes two members of the works council/staff council. Finally, there are also safety delegates (Sicherheitsbeauftragte), who are appointed by the employer (see Tasks and rights). They are also members of the health and safety committee.

Numbers and structure

The works council is a purely employee body and its size increases with the number of employees, starting at one, when there are between five and 20 employees and rising steadily, so that a company with 300 employees would have seven works council members (see Numbers and composition). The arrangements for staff councils in the public sector are similar. 70

A health and safety committee should be set up in all workplaces with more than 20 employees. It consists of the employer or the employer’s representative, two members of the works council/staff council, the occupational physician/s, the health and safety specialist/s and safety delegates (see below).

The number of safety delegates to be appointed depends on the number of employees and the nature of the work and the risks involved. The legislation foresees that safety delegates must be appointed in all workplaces with more than 20 employees, taking account of the number of employees and the threats to health. However, it leaves more detailed guidance in terms of numbers to the accident insurance providers (Unfallversicherungsträger). As well as making payments and otherwise supporting those whose health has been damaged at work, these bodies also have a statutory role in the prevention of accidents, occupational diseases and ill health at work (see National context).

Following a revision in 2014, the umbrella body covering all the accident insurance providers produced common guidance on the number of safety delegates. This moved away from fixed tables based on employee numbers in specific industries to an approach which stated that the number should be “determined on the basis of the following criteria:

• accident and health hazards present in the enterprise;
• physical proximity of the safety delegates to the employees for whom they are responsible;
• need for safety delegates to be present at the same time as the employees for whom they are responsible;
• similarity of the work carried out by the safety delegates and the employees; and
• number of employees.” 71

Examples developed by two different accident insurance providers suggest that in practice this guidance might mean between six and seven safety delegates in a manufacturing company with 350 employees – both manual and non-manual – working over two shifts, but that in an administrative operation with 260 employees two safety delegates would be sufficient. The first example comes from the wood and metal working industry, 72 the second from an insurance provider covering the public sector. 73

Research by the European Agency for Safety and Health at Work in 2019 found that 73% of workplaces in Germany had health and safety representatives, well above the EU27 average of 56%. The proportion of workplaces with health and safety companies at 24% in Germany is more in line with the EU27 average, which was 24%.(The figures are for workplaces with five or more employees.) 74

However, in making the comparison it is important to note that safety delegates are not employee representatives, although they should enjoy the confidence of their fellow workers.

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Tasks and rights

The works council/staff council has a general responsibility to try to ensure that the health and safety provisions and accident prevention measures are observed and to support the appropriate health and safety authorities and the occupational insurance associations/ accident funds in their efforts to eliminate hazards by offering suggestions, advice and information.

It has the right to participate in health and safety inspections and to be given details of any instructions issued by the appropriate authorities. It should also receive details of any reports on health and safety issues as well as notification of any accidents. The works doctor and health and safety specialists must inform the works council/staff council of any significant developments in the area of health and safety and of any proposals they intend to make to the employer. They must also advise the works council/staff council on health and safety issues if they are asked for this.

In addition, the works council/staff council must approve the appointment or dismissal of the works doctor and the health and safety specialist. The arrangements for the prevention of accidents and occupational diseases and for health protection are also subject to works council/staff council agreement. If no agreement is reached, the issue goes to the external arbitration committee (Einigungsstelle), made up of representatives of both employer and works council with a neutral chair, for a decision (see Tasks and rights) .

The works council/staff council must also be consulted on the appointment of safety delegates. However, it is not necessary to obtain its agreement to their appointment.

The health and safety committee should be informed and consulted on health and safety and accident prevention issues, and it provides a forum in which measures to improve workplace health and safety can be developed.

The role of the safety delegates is more limited. They are to support the employer in health and safety issues, to influence employees and to note failings. The intention is that individuals appointed to this position should be aware of both how the work is organised and what needs to be done to keep it safe. They should get the information they need to be effective in the role, and they should take part in the inspections and investigations of accidents and occupational diseases carried out in their area of responsibility by inspectors from the occupational insurance association/ accident fund. They must also be informed of the results of such inspections and investigations.

However, safety delegates are not paid for holding the position, they cannot issue instructions, and they cannot be held responsible for health and safety failings.

Frequency of meetings

The works council/staff council should meet the employer at least once a month, although many issues other than health and safety will be discussed. The health and safety committee should meet at least every three months.

Election and term of office

Works council/staff council members are elected by the whole workforce and the term of office is four years.

The works council/staff council representatives on the health and safety committee are chosen by other members of the works council/staff council.

Safety delegates are appointed by the employer with the involvement of the works council/staff council, but the employer takes the final decision.

Resources, time off and training

Works council/staff council members have paid time off to carry out their duties, including those connected with health and safety, and in workplaces with more than 200 employees at least one works council member has the right to be completely freed from other duties (see Time-off and other resources). (In the public sector, there must be at least 300 staff before a staff council member has the right to be freed from other duties.) They also have the right to take part in training connected with their activities.

There are no specific time-off rights associated with membership of the health and safety committee, although attendance at its meetings is paid.

Safety delegates also have no specific time-off rights. However, they are likely to be given training which will often be provided by the employer’s occupational insurance association/accident fund.

In certain circumstances, provided the employer agrees, the works council can bring in external experts, paid for by the employer, and this right may be used in connection with health and safety issues. Staff councils in the public sector do not have this right explicitly.

Protection against dismissal

Works council/staff council members can only be dismissed for extraordinary reasons – such as gross misconduct – and only if the works council/staff council or the court agrees (labour court for works council members and administrative court for staff council members) (see Protection against dismissal).

Safety delegates do not have special protection against dismissal. However, they should not be disadvantaged because of their activities in the role.

Other elements of workplace health and safety

Employers are required to have access to the services of occupational physicians (works doctors) and health and safety specialists, normally engineers or technicians. In some cases, they will be employees, in other provided externally. The extent to which this is necessary depends on the type of work being undertaken, the number employed, the way work is organised and the knowledge and training of the employer. These occupational physicians and health and safety specialists have a degree of independence from the employer. In their area of expertise, they cannot be given instructions by the employer.

National context

The ministry responsible for health and safety at work is the Federal Ministry of Labour and Social Affairs (Bundesministerium für Arbeit und Soziales – BMAS) at national level. However, the responsibility for monitoring compliance with health and safety laws and regulations lies with the 16 regional states (Länder) through their occupational safety authorities (Arbeitsschutzbehörden), although the structures and names of these bodies varies. Coordination among the regional states on these issues is provided through the State Committee for Occupational Safety, Health and Technology (Länderausschuss für Arbeitsschutz und Sicherheitstechnik – LASI).

However, one key aspect of the German system is that these government bodies make up only one of the pillars of the health and safety structure. The other pillar is provided by bodies providing insurance against accidents at work and occupational ill-health. Funded through obligatory contributions from employers, the occupational insurance associations (Berufsgenossenschaften) in the private sector and the accident funds (Unfallkassen) in the public sector have a statutory role in the prevention of accidents, occupational diseases and ill health at work. They issue regulations which employers are obliged to follow and carry out inspections to ensure compliance, as well as providing advice. Their umbrella body, the German Statutory Accident Insurance (Deutsche Gesetzliche Unfallversicherung – DGUV), which in 2007 brought together the private and public sector accident insurance providers in a single structure, coordinates work in the area of prevention.

The two pillars are brought together in the Joint German Occupational Safety and Health Strategy (Gemeinsame Deutsche Arbeitsschutzstrategie – GDA), which is developed by representatives of central government, the regional states and accident insurance providers. The National Occupational Safety and Health Conference (Nationale Arbeitsschutzkonferenz – NAK) is the decision-making body for the planning, coordination and evaluation of the measures set out in the strategy

Unions (and employers) play a major role in both pillars and in the national conference.

Within the government pillar, they are involved in advisory bodies of the Federal Ministry of Labour and Social Affairs, such as the committee on hazardous substances, the committee on biological agents and the committee on workplaces, which discuss changes to health and safety regulations. They are also involved at regional state level.

The play an even larger role within the accident insurance providers (Unfallversicherungsträger), which are self-governing, with an equal number of representatives of employers and employees on their governing bodies. This includes the governing body of the umbrella organization, the DGUV. Unions and employers together decide on the budget, the level of contributions, prevention measures and all other issues.

Finally, both the unions and the employers have three seats on National Occupational Safety and Health Conference. 75

German health and safety legislation now gives greater weight to psychosocial risks. The Occupational Safety and Health Act (ArbSchG) was changed in October 2013 and specifically refers to the need to organise work in a way which, as far as possible, avoids mental and physical risks to health (§ 4), and adds psychosocial risks at work (“psychische Belastungen bei der Arbeit”) as one of the issues that have to be taken into account when conducting a risk assessment (§ 5).

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Key legislation

Act relating to Works Doctors, Safety Engineers and other Occupational Safety Experts (Occupational Safety Act) 1973

Works Constitution Act 1972

Social Code (VII)

Occupational Safety and Health Act 1996

Gesetz über Betriebsärzte, Sicherheitsingenieure und andere Fachkräfte für Arbeitssicherheit (Arbeitssicherheitsgesetz – ASiG) 1973

Betriebsverfassungsgesetz (BVG)1972

Sozialgesetzbuch (SGB) VII

Arbeitsschutzgesetz (ArbSchG) 1996