How long does the change negotiation process take?

The consultation process for change negotiations usually lasts 2–6 months depending on the size of the company, the scope of the changes, and legal requirements. The reformed co-operation Act will shorten negotiation times from July 1, 2025, onwards, which will speed up the process, especially in SMEs. The duration of the process is determined by several factors that the employer must consider when planning change negotiations.

What determines the duration of a change negotiation process?

The duration of the change negotiations depends on the size of the business, the number of employees, and the scope of changes. Statutory minimums provide a basis for negotiations, but the actual duration can vary significantly depending on the situation.

Company size directly affects negotiation time. The co-determination law is not applicable at all to companies with fewer than 50 employees, which significantly speeds up decision-making. Companies employing 20–49 people will be subject to simplified procedures with the 2025 reform.

The nature of the changes determines the depth of the negotiations. Simple organizational changes require less time than extensive layoffs or mergers. Business transfers, mergers, or divisions require more thorough consideration regardless of the company's size.

Staff numbers affect both legal requirements and practical arrangements. A large number of staff requires more time for communication, handling inquiries, and considering different perspectives in the negotiation process.

What steps does the change negotiation process involve?

The change negotiation process consists of of five main stages: preliminary notification, commencement of negotiations, actual negotiations, decision-making, and implementation. Each phase has its own timelines and requirements.

The advance notice period usually lasts 1-2 weeks. The employer informs the staff about the planned changes and initiates the official process. During this phase, the schedule and parties for negotiations are determined.

The initial phase of negotiations takes 2–4 weeks. The employer will present the change plans in detail, and the staff will have the opportunity to ask questions. Communication and initial discussions will lay the groundwork for the actual negotiations.

The actual negotiations form the core of the process and last 4-12 weeks. The parties go through proposed changes, alternatives, and staff perspectives. Negotiation periods will be shortened in the 2025 reform, which will streamline this phase.

The decision-making and implementation phase takes 2–6 weeks. The employer makes the final decisions based on negotiations and begins the practical implementation of changes. Personnel will be informed of the decisions and schedules.

How does company size affect negotiation timelines?

Company size matters significantly to the schedule and procedures of the negotiations. Small businesses benefit from simplified processes, while larger companies follow full co-determination procedures.

In companies with fewer than 50 employees, change negotiations are not needed at all, which enables quick decision-making. These companies can implement changes flexibly without statutory negotiation obligations, often shortening the process to less than a month.

In companies with 20–49 employees, simplified procedures will apply from the beginning of 2025. These companies will only have to conduct change negotiations in limited cases, such as when planning to lay off at least 20 employees. The process will be faster than in larger companies.

Companies with over 50 employees follow full co-determination procedures. The negotiation process is more thorough and typically lasts 3–6 months depending on the scope of the changes. In large companies, employee representation in management adds further requirements to the process.

Successful completion of change negotiations requires expertise in statutory requirements and practical implementation. Professional support ensures the legality and efficiency of the process. Comprehensive Services support efforts throughout the entire change negotiation process. If you need help planning or implementing change negotiations, contact to discuss the status of your business.