Company Agreement

The company agreement as a regulatory instrument for personnel deployment

Company agreements are the regulatory instrument of works councils, representing a link between employer and employee and enabling the works council to agree on important aspects of personnel deployment. We differentiate between two types of company agreements: firstly, there are company agreements in matters subject to co-determination, where the decision of a conciliation board can replace the agreement between the works council and the employer. Secondly, there are voluntary company agreements in matters not subject to co-determination by works councils. The latter are only concluded by mutual agreement and are not enforceable against the other party to the agreement.

The problem of opposing positions

The drafting of a company agreement is subject to the reconciliation of interests between the employer and the works council and present complications. At the outset, the demands of the employer and the works council are often contradictory, when, for example, the employer wants flexible staff deployment in order to compensate for demand fluctuations, while the works council strives to achieve a balanced weekly working time with less strain on employees and greater predictability. In this situation, it may prove difficult to reconcile conflicting interests. In cases of conflicting positions, a mediating body or a mediator may be the far superior approach in ironing out tensions and resolving disputes more rapidly.

Pre-formulated company agreements do not exist

In many instances, calls for pre-formulated company agreements will be heard. Each company, however, is different due to its culture, employee structure, business model or geographical conditions. Consequently, good company agreements must be tailored and fine-tuned to specific needs in order to reconcile the demands for regulated business processes with the demands of the works council. Communication is the key to good company agreements, so that each side will understand the demands of the other and viable compromises can be found.

Comprehensive, holistic consulting: designing company agreements fairly and effectively

Drawing on over 30 years of extensive experience and the in-depth know-how gained from around 10,000 projects in the field of workforce management, ATOSS Consulting has gained a genuinely holistic view of work and personnel processes. We are also happy to put this experience at your disposal as a mediator taking all perspectives into account and creating a fair balance. In this way, our consultants will help you in designing optimal company agreements.


Michael Knoblauch


Are you looking for expert consultation? I would be pleased to help.

Michael Knoblauch
Director ATOSS Consulting

T +49 89 42771345