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The Works Constitution Act of 2001 in Germany aims to foster a democratic framework in the workplace by promoting collaboration between employers and employees. Key objectives include ensuring social well-being of employees and economic success of the organization. The Act grants works councils rights including consultation, codetermination, and veto powers on matters such as dismissals, working hours, and occupational health and safety. Employers are required to consult with the works council on various issues affecting the workforce. The Act plays a crucial role in German labor relations, establishing a balanced, democratic, and mutually beneficial organizational environment.

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