It's a No-Go on Discrimination: Fixed-Term Contracts for Works Council Members Adhere to Stringent Rules
No additional tasks for works councils regarding temporary employment contracts
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Don't be fooled—Under the watchful eye of the German Federal Labor Court (Bundesarbeitsgericht, BAG), employers can't just throw around fixed-term contracts for their works council members without facing repercussions.
In workplaces across Germany, works council members with fixed-term employment contracts aren't entitled to lifetime employment. However, some ground rules need to be respected. As in the latest case from Lower Saxony (Az.: 7 AZR 50/24), a fixed-term contract can indeed come to an end once its term is up. But here's the catch: the employee should not face any disadvantage or be left jobless after leaving the works council.
Revisiting its case law from 2012 and 2014, the court reaffirmed that the appointment of an employee to the works council doesn't void a fixed-term contract. Workers on the works council are indeed shielded, according to the federal labor judges, by a provision in the Works Constitution Act.
On the Employer's Side
Take, for instance, a case involving a logistics company. The dilemma was the validity of a fixed-term contract and the employer's obligation to renew an employee's indefinite contract. The works council member's contract was set for a year, and out of the 19 employees with expiring contracts, 16 were offered open-ended contracts, but the plaintiff wasn't among them.
The employee thought the sole reason for his snub was his role as a works council member. Unbeknownst to him, the employer signed unlimited contracts with other works council members. The employer argued that the plaintiff's poor job performance and behavior issues ended the employer-employee relationship, whereas his works council membership played no part in the decision.
Lower courts in Lower Saxony rejected the man's complaint, and his subsequent appeal to the Federal Labor Court didn't fare any better.
Managing Labor Law: A Guide to Fixed-term Employment Contracts
Bear in mind that while termination of employment is possible under certain circumstances, employers must be cautious. Unjustified or abusive termination of fixed-term contracts may face challenges in the courts, as it could encroach upon the works council member's protected status.
To give you a gist, German labor law and court rulings champion the rights of works council members, especially in cases concerning fixed-term contracts. Employers need to tread carefully to avoid running afoul of legal protections that reinforce works councils' independence and operation.
In essence:
- Special legal safeguarding applies to works council members wrt fixed-term contracts.
- As per German labor law, employers should offer a permanent contract or have a solid reason for termination.
- The Federal Labor Court safeguards the independence and effectiveness of works councils in Germany through their interpretation of German labor law.
- Adhering to the community policy, employers must be mindful that termination of fixed-term contracts for works council members should abide by stringent rules to prevent any perceived discrimination, as outlined by the German Federal Labor Court (BAG).
- In their strategic planning, businesses and industries should consider the financial implications of their human resources decisions, ensuring that vocational training opportunities are available to employees, including works council members, to enhance their skills and contribute to the overall effectiveness of the business.
