BetrVG

BetrVG stands for Betriebsverfassungsgesetz, the German Works Constitution Act, a federal law in Germany that regulates the internal governance of private-sector enterprises with regard to employee representation. Enacted in 1952 and amended repeatedly, it provides the framework for the formation and functioning of the Betriebsrat (works council) and defines how employees participate in workplace decisions.

The act applies to private-sector businesses with five or more employees and establishes the works council as the statutory body representing the workforce at the local level. The council is elected by the employees for a four-year term. Elections are organized by a Wahlvorstand (election committee) and follow procedures set out in the act and related election regulations.

Key rights and powers: The BetrVG assigns information rights to the works council, requiring management to share relevant data on economic, personnel, and social matters. It also grants consultation rights, obliging employers to discuss proposed measures with the council before decisions are made. Depending on the matter, the council has co-determination rights that require the employer’s consent for decisions affecting workers, notably in social matters such as working time, place of work, shift schedules, and procedures for hiring, transferring, or dismissing employees. In economic matters, the act provides information rights and, in certain circumstances, broader participation in decisions at larger enterprises.

The BetrVG interacts with collective bargaining and other labor-law statutes, and non-compliance can lead to disputes resolved in labor courts. It remains a central instrument of employee participation and industrial relations in Germany.