In firms with as a rule more than 20 employees who are entitled to vote, the employer must obtain the approval of the works council on all matters concerning personnel, such as hiring, job classifications, departmental restructuring and transfers. The works council may refuse to give its approval under certain circumstances governed by law. If the employer intends to carry out the proposed measures nevertheless, he must seek a decision from the Labor Court.

The employer must also consult the works council before any dismissal. If he fails to do so, the dismissal has no effect. In cases involving routine dismissals, the works council has a right of objection. If the works council objects to a routine dismissal on grounds covered by law and the employee files suit for protection against dismissal, the employer must as a rule continue to employ that person if he or she so requests until such time as the matter is resolved by a final court decision. Only the Labor Court can relieve the employer of this obligation. A well-founded objection by the works council also considerably strengthens the employee’s position in court proceedings for protection against dismissal.