Interessenausgleichs

Interessenausgleich is a term from German labor law describing a negotiated balancing of interests between an employer and the workforce during significant operational changes. It is designed to reconcile company needs with the rights and concerns of employees and their representatives, such as the works council (Betriebsrat) and, where applicable, the unions. The core idea is to structure and coordinate the implementation of changes in a way that mitigates negative effects on workers, preserves as many jobs as possible, and maintains the company’s viability.

Typically, the process accompanies planned substantial changes such as plant closures, relocations, major restructurings, or significant reductions in workforce. The employer and the employee representatives discuss and agree on measures to implement the change while protecting interests on both sides. Possible topics include alternative workplace arrangements, job reassignments, training and retraining opportunities, transition measures, and timelines.

In practice, the Interessenausgleich is closely linked to the Sozialplan, a separate agreement that focuses specifically on social compensation for affected employees, for example severance payments, relocation allowances, and retraining programs. While the Sozialplan addresses financial and social mitigation, the Interessenausgleich sets the framework for how the change will occur. If no agreement is reached, parties may seek arbitration or rely on statutory procedures, depending on national law and the specifics of the Betriebsänderung (operational change). The concept is used primarily in Germany, with analogous procedures in other German-speaking countries.