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Is the legal principle that decisions within the enterprise must be taken with the approval of the workforce. In Germany, works councils have a legal right to codetermine a number of issues, such as the arrangements for annual leave, changes in payment systems, and workplace discipline. Effectively, the law endows the works council with a right of veto in these and other areas, such that managers have to secure its agreement before introducing change. Codetermination is also used to refer to the system of worker directors that exists in Germany.

Subjects: Human Resource Management.

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