Employee participation means employees and sometimes other third parties, such as parents or clients, are involved in decisions by the company or institution. In this way, third parties can influence company policy and the course of business.
Works Councils Act
The Works Council Act (WOR) is an important legal tool. This Act determines, for instance, when a works council must be set up and what its powers are. The WOR also regulates employee participation in small enterprises.
Right to be consulted and right of consent
For decisions that have important financial, economic and/or organisational consequences for a company, the employer is obliged to consult the works council in writing. Some decisions even require the works council’s consent. This right of consent applies particularly to a company’s social policy regulations.
Want to know more?
Matters relating to employee participation often require specialist legal knowledge. If you want to know more about employee participation, please feel free to contact us. We will be happy to help you.