The works council has an important role in the restructuring of the business.
As a works council, make sure you obtain as much relevant information as possible from the management about any upcoming organisational change or reorganisation. After all, the works council must be able to decide on such a far-reaching proposed decision at a time when it can still exert relevant influence. It is also important for the works council to consult its constituency, meaning the employees in the organisation, in time.
This can sometimes be difficult for the works council because of a confidentiality obligation expressly imposed by management. From the works council’s perspective, it is important not to accept confidentiality automatically. Discuss the scope of that confidentiality and the period for which it applies.
A reorganisation often leads to multiple redundancies, perhaps even collective redundancies within the meaning of the Collective Redundancies Notification Act. Although trade unions are often involved, especially in the case of collective redundancies involving 20 or more employees, the works council can also raise the issue of a social plan during discussions with the employer about a proposed reorganisation. In essence, a social plan concerns redundancy arrangements and arrangements relating to redeployment and job retention. Case law under the Works Councils Act shows that the content of a social plan must also be taken into account in the right to advise, in the sense that the works council can therefore influence it.
An employer’s announcement of a reorganisation usually causes unrest and concern among staff about possible redundancies. In the case of a proposed redundancy, the works council therefore has an important task in making use of its information and advisory rights, in the interests of the organisation and its employees. A reorganisation also often takes place in several phases: announcement, elaboration, execution and implementation. As a works council, it is important to remain alert to your rights at each stage, to prevent the works council from being unable to make optimal use of employee participation.
Please feel free to contact us if you have any questions.
GMW lawyers will be happy to help you with all your employment law issues. Our lawyers assist both employers and employees.
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