In dynamic markets and flexible corporate structures, operational change processes are often the order of the day. They can be gradual and barely noticeable, yet profound and effective – or they can suddenly appear as drastic and sensational reorganisations. Work processes are fundamentally changed, departments restructured or outsourced, and jobs are often jeopardised. Work content and conditions almost always change, and new demands are placed on employees.
What rights and obligations does the works council have in such situations? How can it recognise changes at an early stage and effectively exercise its co-determination rights in order to influence corporate planning? This training provides practical information on how works councils can act in the event of operational changes in accordance with Sec. 111 ff. WCA. It provides a sound introduction to the legal regulations, the role of the works council and the Finance Committee as well as the negotiation of reconciliation of interests and social plans.
We also familiarise ourselves with the economic framework conditions at company level and their far-reaching effects. Corporate restructuring through share deals, asset deals and reorganisations under the German Transformation Act (Umwandlungsgesetz) will also be discussed. We also examine the consequences under employment law in accordance with Sec. 613a of the German Civil Code (BGB) and their impact on the workforce.
Participation rights of the works council in the event of operational changes
The Works Constitution Act regulates the participation rights of the works council in the event of organisational changes. This includes in particular
- Information and consultation rights: early involvement in restructuring processes
- Negotiation of a reconciliation of interests and, if necessary, an enforceable social plan: Design of transitional arrangements and protective measures for employees
- Influence on economic decisions: Information and consultation rights via the Finance Committee
The aim of the training is to enable works councils to actively exercise their co-determination rights and effectively represent the interests of the workforce.
Reconciliation of interests and social plan – legal basis and practice
A reconciliation of interests describes the planned operational changes, while the social plan serves to mitigate the consequences for the employees. The training covers the following aspects:
- Definition and function of the reconciliation of interests (Sec. 112 WCA)
- Important content and negotiation techniques
- Relevant regulations on social compensation plans (Sec. 112 WCA and Sec. 112a WCA)
- Dealing with dismissals and collective redundancies (Sec. 17 KSchG)
Practical examples will be used to work out how works councils can use these instruments strategically.
Cooperation between the works council and the Finance Committee
Coordination with the Finance Committee is a decisive factor for successful participation in economic matters. The training covers:
- Function and tasks of the Finance Committee
- Effective communication between the works council and the Finance Committee
- Analysing economic key figures for better negotiation management
By providing practical training and advice, we support works councils in effectively exercising their participation rights during restructuring and shaping long-term solutions for the workforce.
The training covers the following main topics
- General tasks of works councils in connection with operational changes
- What does participation in operational changes mean?
- Negotiation of a reconciliation of interests and social plan
- Dismissals for operational reasons and collective redundancy procedures
- The role of the Finance Committee in operational changes
- Reorganisations at company level (share deal, asset deal, UmwG)
- The transfer of business and the legal consequences of Sec. 613a BGB
- Alterations
1.1 Introduction to Sec. 111 WCA
1.2 Definitions and possibilities of the works council
1.3 Information and consultation rights
- The reconciliation of interests and social plan
2.1 Definition and function of the reconciliation of interests
2.1 Function and contents of a social compensation plan (Sec. 112 WCA)
2.2 Excursus on collective redundancies pursuant to Sec. 17 KSchG
- Negotiation of reconciliation of interests and social plan
3.1 Basics of conducting negotiations for operational changes
3.2 Phase model for targeted influencing of operational changes
3.3 Reconciliation of interests, social plan and works agreements
- Indemnities (Sec. 113 WCA)
blank - The Finance Committee as an early warning instrument for operational change and its cooperation with the works council
5.1 Appointment and composition of the Finance Committee (Sec.Sec. 107 ff. WCA)
5.2 Advising and informing: The tasks of the Finance Committee (Sec. 106 WCA)
5.3 Conflict resolution instruments and enforcement options if the Finance Committee is not involved (Sec. 109 WCA, Sec. 121 WCA)
- Restructuring at company level
6.1 Provisions of the German Transformation Act and tasks of the works council
6.2 The transfer of business and the legal consequences of Sec.613a BGB