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FEDERAL REPUBLIC OF GERMANY F.R.GER.3

FEDERAL REPUBLIC OF GERMANY F.R.GER.3 Works Council ― right of co-determination - absorption of amounts of wages exceeding the collectively agreed minimum by increases in the latter HEADNOTES Facts In the Federal Republic of Germany economically strong undertakings usually pay their employees remuneration exceeding the minima laid down by the collective agreements between the competent organisations of employers and workers (so- called ubertariflicher Lohn). In the past, the employer could count any increase in the collectively agreed minimum towards the amount exceeding the minimum, unless there was an agreement to the contrary with the employee. Recently some labour courts have taken the view that any such absorption of the excess remuneration was subject to the right of co-determination of the works council. However, there was no agreement on the subject as between the different Senates of the Federal Labour Court, and the Large Senate was accordingly called upon to decide the matter. Decision 1. Section 77, paragraph 3 of the Works Constitution Act, reserving certain matters for regulation by collective agreement, does not preclude a right of co-determina- tion under section 87, paragraph 1, no. 10 of the Act in respect of the determination of criteria for the payment of amounts exceeding or http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png International Labour Law Reports Online Brill

FEDERAL REPUBLIC OF GERMANY F.R.GER.3

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Publisher
Brill
Copyright
Copyright © Koninklijke Brill NV, Leiden, The Netherlands
eISSN
2211-6028
DOI
10.1163/221160292X00627
Publisher site
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Abstract

Works Council ― right of co-determination - absorption of amounts of wages exceeding the collectively agreed minimum by increases in the latter HEADNOTES Facts In the Federal Republic of Germany economically strong undertakings usually pay their employees remuneration exceeding the minima laid down by the collective agreements between the competent organisations of employers and workers (so- called ubertariflicher Lohn). In the past, the employer could count any increase in the collectively agreed minimum towards the amount exceeding the minimum, unless there was an agreement to the contrary with the employee. Recently some labour courts have taken the view that any such absorption of the excess remuneration was subject to the right of co-determination of the works council. However, there was no agreement on the subject as between the different Senates of the Federal Labour Court, and the Large Senate was accordingly called upon to decide the matter. Decision 1. Section 77, paragraph 3 of the Works Constitution Act, reserving certain matters for regulation by collective agreement, does not preclude a right of co-determina- tion under section 87, paragraph 1, no. 10 of the Act in respect of the determination of criteria for the payment of amounts exceeding or

Journal

International Labour Law Reports Online – Brill

Published: Jan 1, 1991

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