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Social plan and reconciliation of interests: your rights in an operational change

If a company with a works council plans a substantial operational change, such as a closure, relocation or larger staff reduction, the reconciliation of interests and the social plan are central instruments. They are meant to cushion economic disadvantages for employees.

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In operational changes at companies with a works council, the employer must attempt a reconciliation of interests and negotiate a social plan (§§ 111, 112 BetrVG). The social plan regulates the compensation of economic disadvantages, for example through severance.
A social plan can provide severance, transition support or other benefits. If a reconciliation of interests is not attempted without a compelling reason, a compensation for disadvantage may come into consideration.

What you should do now

  1. 1

    1. Recognize the operational change

    Clarify whether a substantial operational change within the meaning of the law exists.

  2. 2

    2. Involve the works council

    Turn to the works council, which conducts the negotiations.

  3. 3

    3. Check the social plan

    See which benefits are provided for your situation.

  4. 4

    4. Secure your claims

    Assert your claims from the social plan in time and in writing.

How to spot the scam

  • An operational change is implemented without involving the works council.
  • Employees receive no information about a social plan.
  • Severance from the social plan is not paid out.

Frequently asked questions

What is the difference between a social plan and a reconciliation of interests?

The reconciliation of interests regulates the whether, when and how of the operational change. The social plan regulates the compensation of the economic disadvantages for the employees, for example severance. Both are negotiated between the employer and the works council (§§ 111, 112 BetrVG).

Am I entitled to severance from the social plan?

If a social plan provides for severance and you fall within its scope, yes. The amount and requirements result from the specific social plan, which often grades by length of service, age and maintenance obligations.

Does this also apply without a works council?

The duty to a reconciliation of interests and a social plan under the Works Constitution Act requires a works council. Without a works council these instruments generally do not exist; severance can then only result from individual agreements or settlements.

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General information for self-help, not legal advice (RDG). In case of a high loss or uncertainty: contact a consumer advice center or a lawyer.