This is how the balance of interests works

In many countries, a reconsiliation of interests is a proven instrument for restructuring. In the reconciliation of interests, the company management agrees with the works council which measures for staff reduction are to be implemented, to what extent, at what time and in what form. It is particularly important to agree on the criteria to be applied when selecting the employees affected.

In a reconciliation of interests, young employees with little professional experience and older employees are usually given special protection. This means that your company would have to do without experienced, capable middle-aged employees in particular. If you have already concluded individual agreements with employees before initiating a reconciliation of interests, the selection will be easier.

Define the scope of a reconciliation of interests sufficiently comprehensively. Implementing subsequent extensions is possible in justified cases, but can be administratively costly. The basis for a reconciliation of interests is a business plan that breaks down the expected work to department level and specific jobs. Careful planning for a reconciliation of interests helps to understand the business in detail much better. In many cases, surprising insights have already been gained in the preparation for reconciliations of interests.

Although the agreement of a reconciliation of interests in the event of a change in operations is not mandatory for a workforce reduction, it is highly recommended. A reconciliation of interests is not only beneficial for the employees affected, but also for the company. A reconciliation of interests makes dismissals justifiable and the entire project more calculable.

Try to reach an agreement on a reconciliation of interests together with the works council; otherwise, a conciliation board would make the decision, over which neither the management nor the works council has any influence.


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