Importance of Works Councils in Start-up Companies
Importance of Works Councils in Start-up Companies
On 27 July 2022, the Federal Cabinet adopted a comprehensive start-up strategy aimed at strengthening start-up ecosystems in Germany and Europe. Within the framework of the start-up strategy, measures will be launched in ten different fields of action. One of these fields of action includes instruments to make it easier to attract talent for start-ups. One aspect here is good working conditions. In particular, it is assumed that good working conditions also include a working atmosphere in which employees in start-up companies feel encouraged to form works councils in order to exercise their co-determination rights.
However, there is currently no empirical data on the existence of works councils in start-up companies in Germany. A first step is therefore to take stock of the prevalence of works councils in start-up companies. This survey is intended to create a reliable empirical basis for a subsequent dialogue process, which should contribute to improving workplace co-determination, especially in larger start-up companies.
Against the background outlined, the aim of this short expert report is to provide an empirical basis for statements on the relevance of works councils in start-up companies in Germany. It should be taken into account that the definition of a start-up company in the federal government's start-up strategy was deliberately formulated in an open manner. According to this, start-up companies are "young innovative companies with growth ambitions: They are characterised by an innovative business model, an innovative product or an innovative service. They also have scaling potential, i.e. the potential to grow and develop". It is important to note here that there is no restriction to certain sectors or markets.