Betriebsverfassungsgesetzes

The Betriebsverfassungsgesetz, commonly abbreviated BetrVG, is a foundational federal law in Germany that governs the relationship between employers and employees in private-sector companies through employee representation. It establishes the works council (Betriebsrat), sets out rules for its formation, composition, and procedures, and defines the rights and duties of both the council and the employer. The law is central to the German system of co-determination and workplace participation.

The statute applies to small and large private enterprises with a minimum number of permanent employees. In establishments with five or more permanent workers, employees elect a Betriebsrat by secret ballot for a four-year term. The size of the council depends on the number of employees. The BetrVG also regulates election procedures, eligibility, and the role of staff representatives at different levels of a company.

Key elements include information and consultation rights, and the obligation of the employer to involve the Betriebsrat in many decisions that affect workers. In matters of social policy and personnel, the council often has co-determination rights, meaning the employer generally cannot implement certain measures without the council’s assent. In individual personnel actions such as terminations, the council participates and may influence outcomes, with disputes ultimately resolved by labor courts.

The BetrVG interacts with other labor laws and with sector-wide collective agreements. It remains a central instrument for employee participation, providing a structured framework for negotiation, information flow, and conflict resolution within German private-sector workplaces.