Sector-level bargaining and possibilities for deviations at company level : Germany

The legal basis of collective bargaining in Germany is laid down by the Collective Agreements Act, 1949. Collective agreements can be concluded between employer associations (or individual employers) and trade unions. In contrast, works councils – statutory employee representation bodies elected at workplace and company level – may only conclude works agreements. Under the Works Constitution Act, these ‘shall not deal with remuneration and other conditions of employment that have been fixed, or are normally fixed, by collective agreement’.