The labor director is a member of the board of directors in co-determined companies who is responsible for human resources and social affairs and has equal rights compared to other managers of a company. The main areas of activity of a labor director are:
- human Resource
- Social affairs
- Education and training
- Work safety and work organization
- Medical Services
The institution of the Labor Director was first anchored in Germany in the Montan Co-Determination Act 1951.
A labor director is to be appointed in the AG and the GmbH, each with regularly more than 2,000 employees (§§ 1 Paragraph 1, 33 MitbestG). A labor director is not required by law for companies with up to 2,000 employees.
The labor director is appointed by the supervisory board as a member of the management board of an AG in accordance with Section 84 (1) AktG. According to Section 13 (1) of the MontanMitbestG, the labor director cannot be appointed or dismissed against the majority of the votes of the employee representatives on the supervisory board.
The labor director has personal responsibility for his department. Since, as a member of the Board of Management, he has to represent the interests of the company on the one hand, but also the interests of the employees on the other, this can lead to a conflict of loyalty.