Mitbestimmung (codetermination) is the statutory participation of employees in decisions. It operates on two levels: workplace codetermination through the works council under the BetrVG (notably social matters § 87, personnel § 99, economic § 111), and company-level codetermination on the supervisory board under the DrittelbG (more than 500 employees) and the MitbestG (more than 2,000 employees).
At a glance
- Two levels: workplace codetermination (works council) and company-level codetermination (supervisory board)
- Workplace codetermination follows the BetrVG, graded into social, personnel and economic matters
- Strongest rights on social matters: genuine codetermination under § 87 BetrVG
- Individual personnel measures such as hiring and transfer, and economic matters, are also governed by the BetrVG, with progressively weaker rights
- Company-level codetermination on the supervisory board: one-third participation from more than 500 employees (DrittelbG), parity from more than 2,000 employees (MitbestG)
- For employers: involve the works council in good time before any measure subject to codetermination
The two levels of codetermination
- Workplace codetermination: exercised by the works council at establishment level. Rights range from genuine codetermination on social matters (§ 87 BetrVG, such as working time and workplace conduct), through participation in individual personnel measures, to information and consultation on economic matters.
- Company-level codetermination: concerns the composition of the supervisory board. Under the DrittelbG the workforce fills one-third of the seats where the company usually has more than 500 employees. Under the MitbestG the board is composed on a parity basis of shareholder and employee representatives where more than 2,000 employees are usually employed.
FAQ
What is the difference between workplace and company-level codetermination?
Workplace codetermination happens at establishment level through the works council and concerns the ongoing employment relationship. Company-level codetermination happens at company level on the supervisory board and concerns oversight of management. The two rest on different statutes.
From what size does company-level codetermination apply?
One-third participation under the DrittelbG applies from usually more than 500 employees; parity codetermination under the MitbestG applies from usually more than 2,000 employees. The thresholds turn on the number of employees of the individual company; the exact calculation in corporate groups is contested and must be checked case by case.
Which works council codetermination rights are the strongest?
The strongest are the rights on social matters under § 87 BetrVG. There the employer generally may not act without the works council's consent; if no agreement is reached, the conciliation board (Einigungsstelle) decides. On personnel and economic matters the rights are progressively weaker.
What does codetermination mean for employers in practice?
The works council must be involved fully and in good time before any measure subject to codetermination. If codetermination is bypassed, measures can be invalid or trigger injunction claims. Early involvement lowers the risk and speeds up decisions.
Last updated: August 2026
This article provides general information and is not a substitute for legal advice in individual cases.
