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The works council has a single focus once the bankruptcy petition is filed:

Keep calm, stay cool, don't do anything rash, get informed, keep informed, and get seasoned professionals on your side!

When a company begins bankruptcy proceedings, it is vital for the works council to have reliable experts at its side to remain effective.

We provide a team of specialists who deliver the expertise necessary for the works council in a variety of disciplines during bankruptcy proceedings. In addition to labor law and bankruptcy law attorneys, the team consists of corporate and strategy consultants for works councils. Experienced and aware of the challenges arising in these exceptional situations, it identifies and assesses the available alternatives in close cooperation with the works council.

In a legal article (in German) downloadable as a PDF document, Dr. Thomas Koeppen and Dr. Christof Balkenhol explain which issues are vital for a works council to consider and describe how it can position itself optimally.

Works council members are confronted with a number of challenges in the event of an imminent corporate bankruptcy, given that

  • the bankruptcy filing usually comes as a surprise
    • contact persons, duties and game rules may change
      • there is little time to react
          • the members themselves are often the subject of staff cuts

Training for works councils in the event of corporate bankruptcy

The works council has a right to be trained in the event of operational changes and bankruptcies in accordance with §37 (6) BetrVG. It is essential, though not always easy, to exercise this right. On the one hand there are hardly any seminars on offer, on the other each situation is unique.

Another thorny issue is the financing question. One short-term solution we offer is conducting in-house training courses, tailored to the specific needs of the company and the current status of the bankruptcy.

We recommend consulting external experts in the event of operational changes and bankruptcies

Outside experts see the big picture and can provide valuable input based on their experience. When selecting consultants, therefore, it is essential that they have experience with restructuring in a corporate crisis. Our team of experts is experienced in all relevant areas and is familiar with the various scenarios that can arise during corporate bankruptcies.

Call in the corporate bankruptcy experts!