Co-determination and Compliance · Priority topic

HR Software and Works Councils

By Redaktion techport.ai, HR-Beratung · Last updated on 21 August 2026

The new HR system has been selected, the contract signed, and the go-live planned for January. In October, the Works Council learns about it and demands that it be stopped. They are within their rights: every system that collects data about employees is subject to co-determination under the Betriebsverfassungsgesetz (Works Constitution Act), regardless of whether the employer intends to monitor. The Federal Labour Court focuses on objective suitability. An HR system is always suitable.

The project is delayed by six months, licences are running, and the relationship with the Works Council is damaged. This can be avoided by treating co-determination like any other requirement: early, specific and with a plan.

How you can tell

The Works Council learns about system projects from the intranet or the vendor.
The existing works agreement on IT knows no cloud, no mobile apps and no AI.
Every update with new functions leads to a fundamental discussion.
The Works Council consults experts, and the project waits.

Why this happens

Co-determination is treated as a legal step at the end of system projects, not as a requirement at the beginning. Project managers from IT or HR often do not know the rules, and the Works Council is only involved when it seems formally necessary. Then the documents they need are missing, and mistrust sets in.

Our approach

Inform early. According to § 90 Betriebsverfassungsgesetz (Works Constitution Act), the Works Council must be informed about the planning of technical facilities at an early stage. We involve them before vendor selection: goals, processes, requirements. They see the presentations and can ask questions before a decision is made.
Present a data protection concept. Which data, for what purposes, what access, what evaluations, what deletion periods. This concept forms the basis of both the works agreement and the data protection impact assessment.
Negotiate a framework works agreement. Instead of an agreement for each system, a framework agreement with principles, procedures for new systems and functions, rules for evaluations and performance control, AI clauses, and a list of systems as an appendix. New functions are then added via appendix, not via renegotiation.
Anchor participation in the project. The Works Council gets a fixed place in the project: participation in tests, insight into authorisations, information before every release. This adds time to the project but saves months in the end.

What you gain

System projects run on schedule because co-determination is planned for rather than caught up on.
The Works Council becomes a partner who sets requirements, not an opponent who demands cessation.
New functions and AI features can be introduced in weeks, not months.

From our projects

In system projects we take over after they have stalled, the cause is almost always the same: the Works Council was informed after the decision and then asked the questions that no one had answered beforehand. In projects we accompany from the outset, we negotiate the framework works agreement in parallel with the selection process. This extends the selection phase by a few weeks and shortens the introduction by months. A Works Council that has seen the vendor presentations asks different questions in negotiations than one that has not.

Good to know

Employee co-determination regarding technical facilities stems from § 87 paragraph 1 number 6 BetrVG (Works Constitution Act). According to § 80 paragraph 3 BetrVG, the involvement of an expert is considered necessary if the works council has to assess the use of AI. For selection guidelines involving AI, § 95 paragraph 2a BetrVG applies. Violations of information obligations can be penalised with a fine under § 121 BetrVG, and the works council can legally prohibit the use of a system introduced without co-determination. In February 2026, Bitkom published a guide on AI and co-determination, which consolidates the positions of both sides.

Frequently asked questions

What if the works council fundamentally blocks it?

This is rare and usually the result of previous experiences. The approach is the same: transparency, concept, time for experts. If no agreement is reached, the conciliation board decides. This takes time but is an orderly process and not a dead end.

Does this also apply to standard software like Office suites with AI functions?

Yes, provided they can collect and analyse data about employees, which practically all of them can. The framework works agreement should therefore also cover office software and its AI functions.

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