Works council: Verdict: No co-determination for exempt works councils

The works council has no say in a decision regarding higher remuneration for exempt works council members. The Federal Labor Court in Erfurt decided that the increase in the salary of a works council member who has been released from his professional activity is not subject to the co-assessment of the employee representatives.

The standard provides for the works council to have a say in the regrouping and regrouping of employees. These consist of assigning the work to be performed by an employee to a specific group of the relevant remuneration regulations.

However, the question of higher wages and salaries for exempt works council members is not such a classification. The highest labor court also announced that the increase in their salaries was based on legal requirements. Accordingly, the remuneration of a released works council member must either be adjusted in line with the normal development of comparable employees – or in order to avoid disadvantage because the works council member was unable to advance to a higher paid position simply as a result of taking office.

Works council was successful in lower courts

The legal complaint from an employer who runs two car dealerships in Leipzig was successful. The company and the works council were in dispute over the correct classification of the works council chairman. The works council believed that it had a right to participate in this and wanted to enforce this in court. The employer objects to this that the principles of classification do not apply to the remuneration of exempt works council members, because a fully exempt works council member does not receive remuneration for work performed, but rather remuneration based on the loss of wages principle.

The lower courts ruled in favor of the works council. However, the Federal Labor Court saw the case differently and found the employer right.