A works council is a representative body of employees within an enterprise which in most European countries has a legal status and cannot be sidestepped or dissolved by employers. Under the German Works Constitution Act (“Betriebsverfassungsgesetz”), a works council should be elected in all establishments that normally have five or more permanent employees with voting rights. The members of the works council are elected by the entire workforce, and the works council’s duties are specified by law: the works council hears grievances, ensures that the employer complies with all labour laws and collective bargaining agreements, and bargains with the employers over personnel and social matters; including hirings, transfers, dismissals, hours of work, and plant rules.
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The unexpected effects of the German minimum wage on income equality in firms
When Germany introduced its federal statutory minimum wage of 8.50 euro in 2015, it marked a major shift in labour policy. Fast forward to 2025, and the minimum wage is now 12.82 euro. Given annual ...read more
19. February 2025 | Interviews
ELMI Policy Talk: Immigrant integration services in Germany, Sweden and Finland
How do different countries integrate immigrants? How does language training link with skills training? Do these distinct policy choices have an impact on labour market outcomes? What about the gender ...read more
9. January 2025 | Interviews
Does automation replace experts or augment expertise? The answer is yes
David Autor, Professor of economics at the Massachusetts Institute of Technology (MIT), gives a Special Lecture at the IAB on 15 January 2025. In this accompanying interview, he discusses the impact ...read more