Germany: new definition of salaries for works council members

Featured image of the article Germany: new definition of salaries for works council members
Following votes in the Bundestag (28 June) and Bundesrat (5 July), the draft 'second law amending the law on the organisation of companies' (BetrVG) has been definitively adopted, marking the arrival new rules for defining the remuneration of employee representatives on works councils (Betriebsrat). This must now be comparable to that of employees in similar positions.
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This change comes after a ruling by the Federal Court of Justice (BGH) on 10 January 2023 (Az. 6 StR 133/22) cast doubt on the governance of companies subject to the law on co-determination. In the wake of an investigation into Porsche’s takeover of Volkswagen (VW), four members of VW’s works council, including its former chairman Bernd Osterloh, were suspected of breach of trust for having received extraordinary remuneration and bonuses for years (€750,000/year for Osterloh). In 2023, the BGH

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