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Plant Agreement (company agreement); written agreement concluded between the owner of a company and the Works Council on matters which legal norms or Collective Agreements have made subject to such an agreement. Plant agreements are primarily an instrument for ensuring worker participation in company management. In certain fields, such as disciplinary regulations or supervision of employees by methods which may affect human dignity or output-related remuneration, plant agreements are compulsory. In other matters (e.g. general rules, working hours, working conditions, social compensation plans, holidays, company pensions), they are optional.


W. Schwarz and G. Loeschnigg, Arbeitsrecht 71999.