The Federal Cabinet has introduced a draft bill to make it easier for employees to establish and elect works councils and to facilitate the works councils’ work in an increasingly digitalized work environment, the “Betriebsrätemodernisierungsgesetz“.
Less Red Tape and More Protection
The draft bill intends to facilitate the establishment of works councils, in particular in smaller companies and to strengthen the protection of the employees involved. To justify the need of the draft bill, the Federal Cabinet relies on statistics according to which only 9 % of the operations in western Germany with works council capacity have elected a works council. Employers shall be hindered to prevent the election of a works council in a more effective manner than before.
The German Federal Labor Court (judgment of March 20, 2018 – 1 ABR 15/17) has recently clarified a matter of considerable practical relevance for U.S. companies offering stock options to employees of their Germany-based subsidiaries: Does the German subsidiary’s works council have a right to be involved when it comes to offering stock options? READ MORE
The German Federal Labor Court (Bundesarbeitsgericht – BAG) has ruled that when an employer provides Facebook users access to publish posts on the company’s Facebook page that relate to the behavior or performance of individual employees, that process is subject to negotiation and co-determination of the works council.
The ruling is of particular significance especially for companies with an existing works council in Germany that operate a Facebook page or a page on a similar social network with a commenting function for users.
Draft legislation regarding the reform of the German Act on the Supply of Temporary Employees (Arbeitnehmerüberlassungsgesetz – AÜG) has been introduced by Germany’s Federal Minister of Labor. Although further amendments to this draft are likely and a final version will not come into force before January 1, 2017, it is important to know what this means for temporary employment agencies and their customers, the host businesses.