Germany: vote on Works Council modernization law is passed

On May 21 2021, Germany’s federal deputies voted the law on the modernization of works councils (Betriebsrätemodernisierungsgesetz). With this text (c.f. article No. 12448), the accelerated procedure for electing works councils that already existed for companies with fewer than 50 staff is extended to companies with up to 100 employees. Restrictions have been placed on the avenues for contesting a works council election due to errors in the electoral list. Protection from employment dismissal for those initiating a WC election will be extended to the first six employees (vs. three previously) listed on the WC election notice. These measures were requested by the trade unions, which, according to IG Metall, have to deal with significant election blocking actions by company management in one out of six cases. Otherwise, the provision preventing apprentices from voting over the age of 25 has been removed and all employees over 16 years of age will have the right to vote. Recourse to mobile working will require regulation, in agreement with the Works Council, and the use of artificial intelligence in work processes and organization will not be allowed to restrict the rights of the Works Council. Finally, electronic voting and the right to virtual meetings are now permanently authorized, even if the preference for face-to-face procedures remains strong. Trade unions have welcomed the law as a “first step” towards strengthening co-determination. However, the employers’ federations have found it unfortunate that cooperation between the social partners has been burdened by bureaucratic procedures.