Co-determination in the Workplace Act
The Co-determination Act (MBL) regulates cooperation between employers and employees. The purpose is to give employees and trade unions the right to information and negotiation before important decisions affecting working life, reorganizations, or working conditions are made. For companies, MBL is a central part of the legal framework for employment and must be handled with legal certainty.
What does the Co-determination Act (MBL) mean?
MBL requires employers to inform trade unions and give them the opportunity to provide input before decisions affecting employees' terms and conditions are implemented. This is not about the union having the final say, but about structured collaboration where the employer is obliged to listen and consider what is put forward. The law covers, among other things, reorganizations, changes in job duties, the introduction of new technology, and extensive layoffs.
When is the employer required to engage in MBL negotiations?
MBL negotiations are required when an employer plans decisions that could affect employees' employment conditions or the business as a whole. Common situations include reorganizations, labor shortages, dismissals, changes in working conditions, workplace changes, or the introduction of new technology that impacts job duties. Therefore, companies should identify MBL-related changes in a timely manner and initiate the information and negotiation process before decisions are made, to avoid disputes.
What does MBL negotiation mean for the company?
An MBL negotiation means that the employer must inform the trade union organizations and document the prerequisites for the decision and the course of the negotiation. For companies, this means that decisions are clearly prepared, negotiations are conducted seriously, and the results can be summarized in a written account if the union requests it. Through a correct MBL process, the risk of conflicts and claims for damages is reduced.
Legal advice on the Co-determination Act (MBL) for companies
If you as a company or HR manager are wondering whether a planned change requires negotiation, an employment lawyer can provide clear advice. We help companies assess whether MBL negotiations are required, prepare documentation, and conduct negotiations in a legally sound manner to reduce the risk of disputes and conflicts in working life. Contact us for guidance on reorganizations, dismissals, reassignments, and other changes related to employment law.
Frequently Asked Questions about MBL
Which decisions are to be negotiated according to the Co-determination Act (MBL)?
MBL applies to decisions affecting employees' terms and conditions, such as reorganizations, layoffs, reassignments, changes in job duties, or the introduction of new technology.
Must the employer negotiate with the union before making more significant changes?
Yes – the employer shall inform and negotiate with trade unions before decisions are made about more significant changes.
What happens if MBL negotiations are not carried out?
An incorrect or absent MBL procedure can lead to disputes or damages.