The works council is the institution for employee representation in companies. The works council is a co-determination body that represents the interests of employees in company and personnel decisions.
In principle, a works council can be elected in any company with five or more "permanent employees entitled to vote" in accordance with Section 1 of the Works Constitution Act (BetrVG). Regardless of whether it is a small company, a medium-sized company or a group, it is not the duty of the company management to initiate the establishment of a works council. There is therefore no obligation for companies to have a works council. However, the establishment of a works council is an important right of a company's employees and must be accepted by the company management.