Works Council
The works council represents one of the mechanisms through which the Labour Act enables employees to actively participate in making decisions regarding significant economic and social matters that affect their rights and interests. By establishing a works council, employees are given the opportunity to be involved, through their elected representatives, in the decision-making process concerning issues of particular importance to their working conditions.
The establishment of a works council is not mandatory. A works council may be established at employers employing at least 20 workers. The initiative can be launched by a trade union or by at least twenty percent of the employees employed by the respective employer.
The number of works council members is determined based on the number of employees:
- up to 75 workers, 1 represenatative,
- from 76 to 250 workers, 3 representatives,
- from 1 to 500 workers, 5 representatives
- from 501 to 750 radnika, 7 representatives,
- from 751 to 1000 radnika, 9 representatives.
For every additional commenced thousand employees, the number of works council members increases by two.
Main powers of the Works Council
The works council protects and promotes the interests of the employees at a specific employer by engaging in consultation, co-decision, or negotiations with the employer or the employer’s authorized representative on matters important to employees’ positions. The works council ensures compliance with the Labour Act, internal employment regulations, and other relevant laws and regulations.
It also monitors whether the employer properly and accurately fulfills obligations related to the calculation and payment of social security contributions, and in this regard, it has the right to inspect relevant documentation.
It is important to note that the works council may not participate in the preparation or implementation of strikes, lockouts, or other industrial actions, nor may it interfere in collective labour disputes that could lead to such actions.
Obligation to consult before making decisions
Before making any decision that significantly affects the position of employees, the employer is obliged to consult the works council and to provide it with all relevant information necessary for understanding the intended decision and its impact on employees.
The law does not provide an exhaustive list of decisions requiring consultation but highlights particularly important ones, such as: adoption of employment regulations, employment and dismissal plans and policies, transfer of the company or part of its business, health and safety measures, annual leave planning, working time arrangements, night work, and similar matters.
Additionally, the works council may oppose a dismissal if the employer lacks a justified reason or if the dismissal procedure prescribed by law has not been followed.
Decisions requiring prior consent of the Works Council – Co-decision making
Certain decisions can only be made with the prior consent of the works council, as explicitly prescribed by the Labour Act. These include:
- dismissal of a works council member,
- dismissal of a candidate for the works council who was not elected, within three months of the final election results,
- dismissal of an employee whose working capacity has been reduced due to a work injury or occupational disease, or an employee with a disability,
- dismissal of an employee aged 60 or older, except if the employee is at least 65 years old and has 15 years of pensionable service,
- dismissal of a workers’ representative in an employer’s governing body,
- inclusion of an employee in a collective redundancy process, unless the employer has initiated or is conducting the procedure in accordance with a special regulation,
- collection, processing, use, and transfer of employees’ personal data to third parties,
- appointment of the person authorized to monitor whether employees’ personal data are collected, processed, used, and transferred in accordance with the law.
If the works council withholds consent, it must provide a written explanation. The employer may, within fifteen days from the receipt of such explanation, request that the consent be substituted by a court or arbitration decision.
It is also important to note that the employer and the works council may agree, through a mutual agreement, on additional matters that may require the prior consent of the works council before any decision is made.
