A Betriebsvereinbarung (works agreement) is a written contract between the employer and the works council (§ 77 BetrVG). It applies directly and mandatorily to the employment relationships in the establishment, much like a statute. On the social matters listed in § 87 BetrVG it is enforceable; beyond that it is voluntary (§ 88). The tariff priority (§ 77 (3)) bars topics usually governed by collective agreements, and the favourability principle protects more favourable individual arrangements.
At a glance
- A contract between employer and works council, made in writing and posted in the establishment (§ 77 BetrVG)
- Direct and mandatory (normative) effect on the employment relationships
- Enforceable on the social matters in § 87 BetrVG, otherwise voluntary (§ 88 BetrVG)
- Tariff priority and blocking rule: topics usually governed by collective agreement are barred
- Favourability principle: more favourable individual arrangements for the employee remain valid
- Terminated by three months' notice, with continued effect (Nachwirkung) in enforceable matters
Voluntary and enforceable works agreements
- Enforceable: on the social matters in § 87 BetrVG (such as the distribution of working time, holiday principles, technical monitoring devices) the works council has genuine codetermination (Mitbestimmung). If no agreement is reached, the conciliation board (Einigungsstelle) decides.
- Voluntary: further topics may be agreed under § 88 BetrVG, such as additional benefits. There is no obligation to agree, and neither side can force the other to conclude one.
FAQ
What does "direct and mandatory" mean?
The rules apply automatically to all affected employment relationships without needing to be copied into each individual contract. Deviations to the employee's disadvantage are generally invalid.
What does the tariff priority do?
Pay and other working conditions that are usually governed by collective agreement generally cannot be the subject of a works agreement (the blocking rule, § 77 Abs. 3 BetrVG). A works agreement is only possible where a collective agreement expressly allows it through an opening clause.
What happens if the works agreement is terminated?
It can be terminated on three months' notice. On enforceable matters the rules continue to apply until replaced by another arrangement (Nachwirkung). Voluntary works agreements generally do not have this continued effect.
How does a works agreement interact with the employment contract?
Under the favourability principle, the rule more favourable to the employee prevails. A works agreement can therefore improve individual entitlements, but cannot simply reduce them below what the contract promises.
Last updated: August 2026
This article provides general information and is not a substitute for legal advice in individual cases.
