techport HR Suite

Works Agreement on AI: Model Outline with Explanations

Anyone introducing AI or new HR software almost always requires an agreement with the works council. A works agreement is standard practice. Many templates online are either very general or tailored to a single product. This page offers a middle ground: a model outline with 17 regulatory clauses. For each point, it explains what belongs in it and which legal provision it is based on.

The outline is not a finished contract text. It helps employers and works councils avoid overlooking anything important and structure their negotiations. Have the draft reviewed by legal counsel prior to conclusion. Which co-determination rights apply to AI is explained in our guide Works Council and AI.

When a Works Agreement on AI Is Required

Systems that are objectively capable of monitoring the behaviour or performance of employees are subject to co-determination under § 87 Abs. 1 Nr. 6 BetrVG (Works Constitution Act). This applies to virtually every HR software with activity logs, with or without AI. Without an agreement, the conciliation committee (Einigungsstelle) decides. Selection criteria for staff recruitment additionally require consent under § 95 BetrVG, even when AI is involved.

A works agreement offers two advantages. It applies directly and mandatorily (§ 77 Abs. 4 BetrVG). And under Art. 88 GDPR (DSGVO), it can serve as a legal basis for processing employee data. To do so, it must comply with the general rules of the GDPR, in particular Art. 5, 6 and 9, and courts review this fully (CJEU, 19 Dec 2024, C-65/23).

Framework Agreement or Agreement per System

In practice, a framework works agreement for IT and AI with annexes for each individual system is advisable. The framework governs principles and procedures. The annexes describe the specific system: purpose, data, roles, evaluations. If a system or feature is added, you add an annex rather than renegotiating. The outline below is structured this way. How to organise such a project is described on our consulting page HR Software and Works Council.

Model Outline: Works Agreement on AI and HR Software

Preamble and Objectives

Brief description of why the systems are being introduced and what objectives both parties are pursuing. A reference to safeguarding the personal rights of employees, which employer and works council jointly protect and promote under § 75 Abs. 2 BetrVG, is advisable.

§ 1 Scope of Application

Territorial (establishments, sites), personal (employees represented by the works council) and material (the systems listed in the system inventory in Annex 1). Clarify whether test systems and training environments are also covered.

§ 2 Definitions

Define AI system, high-risk AI system, log, evaluation and personal data. For AI systems, the definition from Art. 3 No. 1 of the AI Act (KI-VO) is recommended so that the agreement and the law use the same terminology.

§ 3 Specified Purpose

For each system, the permitted purposes, exhaustively set out in Annex 2. Use for other purposes is only permissible after amending the annex. This is the most crucial safeguard against creeping scope expansion.

§ 4 Principles

Data minimisation and purpose limitation (Art. 5 GDPR), transparency towards employees, and the primacy of human decisions. Decisions with legal effect on employees or applicants must be made by a human (Art. 22 GDPR).

§ 5 Excluded Uses

Set out what will not take place: no performance or behavioural monitoring other than the evaluations specified in Annex 5, no automated rejections, no emotion recognition. The latter has been prohibited in the workplace since 2 February 2025 in any case (Art. 5(1)(f) KI-VO). Clarify whether data collected in breach of the agreement may be used for personnel measures.

§ 6 Data and Data Sources

Data categories per system in Annex 3, along with sources and interfaces. Special categories such as health data only insofar as permitted under Art. 9 GDPR.

§ 7 Roles and Permissions

Who is permitted to view and modify what is specified in Annex 4. Administrative access is logged. For managers, the recommended rule is: only their own teams.

§ 8 Evaluations and Reports

A positive list of permissible evaluations in Annex 5. A minimum cohort size for group evaluations is advisable so that no conclusions can be drawn about individuals. New evaluations only following an amendment to the annex.

§ 9 AI in Staff Selection

Assessment criteria of an AI applicant evaluation can constitute selection guidelines under § 95 BetrVG. Regulate how criteria are established and approved, whether each version requires works council consent, how characteristics under the AGG (General Equal Treatment Act) are excluded, and that a human decides on every application. Overriding should be possible, accompanied by an obligation to provide reasons.

§ 10 Logging

What is logged, for what purpose and for how long. Deployers of high-risk AI must retain automatically generated logs, insofar as they control them, for at least six months from 2 December 2027 (Art. 26(6) KI-VO). Agree that logs will not be used for performance monitoring of users.

§ 11 Information to Employees and Applicants

How employees and applicants are informed (Art. 13 and 14 GDPR). For high-risk AI, the information obligations under Art. 26(7) and (11) KI-VO will additionally apply from 2 December 2027. AI systems interacting directly with humans must be designed so that users recognise this since 2 August 2026 (Art. 50(1) KI-VO).

§ 12 Data Protection and Deletion

Data protection impact assessment (Art. 35 GDPR), data processing agreement (Art. 28 GDPR), deletion periods per data category, and handling of data subject access requests. The deletion concept is set out in Annex 7.

§ 13 Training and Qualification

Training for everyone working with the systems. Art. 4 KI-VO, in the version in force since 27 July 2026, requires measures to support staff AI literacy. A specific proficiency level does not have to be guaranteed.

§ 14 Rights of the Works Council

Documentation prior to introduction and modifications, read-only access to configuration and logs, test access. When assessing AI, an expert is deemed necessary (§ 80 Abs. 3 BetrVG). The person and the brief are agreed in detail; the costs are borne by the employer (§ 40 BetrVG).

§ 15 Amendments, Updates and New Features

A fixed procedure: information prior to every release with new features, assessment by the works council, amendment of the annexes. Security updates may be deployed immediately provided they do not introduce new features.

§ 16 Dispute Resolution

First a parity-based working group, then the conciliation committee (§ 76 BetrVG). A standing conciliation committee is also possible.

§ 17 Final Provisions

Entry into force, termination with three months' notice unless agreed otherwise (§ 77 Abs. 5 BetrVG), continuing effect (§ 77 Abs. 6 BetrVG). The agreement must be drawn up in writing and signed or electronically signed by both parties on the same document (§ 77 Abs. 2 BetrVG).

Annexes

System inventory
Purpose and functions per system
Data categories and sources
Roles and permissions
Permitted evaluations
Catalogue of criteria for AI applicant evaluation
Deletion concept
Information notice for employees and applicants

Typical Gaps in Existing Agreements

Many companies already have an IT agreement. Check it for the following points:

The purpose is formulated in broad terms, such as “to support HR operations”. This means every new AI feature falls under it without anyone being consulted.
Evaluations are not exhaustively listed.
Logs of AI queries and their use are not regulated.
There is no procedure for updates, meaning every new feature becomes a matter of fundamental principle.
Assessment criteria for staff selection are not covered, although § 95 BetrVG may require consent for them.
The obligations under the AI Act from 2 December 2027 are not yet taken into account.

How techport HR Suite Provides Support

A works agreement is only as good as its implementation in the system. The techport HR Suite provides concrete foundations for the annexes:

Roles and permissions per module for Annex 4, verified server-side, with a complete audit trail.
Defined reports for Annex 5, such as headcount, joiners and leavers, or staffing plan target vs. actual.
Versioned evaluation criteria for Annex 6: each approval is an immutable version. Criteria and logs can be exported.
Human in the loop: the AI makes suggestions, a human decides. The system never sends rejections automatically.
Deletion periods with automated deletion as well as data subject access and export per person for Annex 7.
Instructions for use and template “Information for applicants” for Annex 8.
Labelling in company knowledge: every answer is identifiable as an AI-generated response.
The [works council assistant](/hr-software/betriebsrat-software) with read-only access to criteria and logs and a dedicated repository for works agreements.

Operation on servers in Germany, on request as a dedicated on-premises installation. What this means for the AI Act is explained in our guide AI Act in HR; questions about data protection are answered in our guide to AI and GDPR. Request demo

Frequently asked questions

Gibt es ein Muster für eine Betriebsvereinbarung zu KI?

Yes, as a model outline like on this page. A ready-made contract text rarely fits because systems, purposes and organisations differ. Use the 17 regulatory clauses as a framework, populate the annexes with the specifics of your systems, and have the draft reviewed by legal counsel. For the works council, engaging an expert advisor under § 80 Abs. 3 BetrVG is additionally worthwhile.

Ist eine Betriebsvereinbarung bei KI Pflicht?

An agreement with the works council is mandatory for software capable of monitoring employee behaviour or performance (§ 87 Abs. 1 Nr. 6 BetrVG); otherwise, the conciliation committee decides. A works agreement is the standard format for this. It applies directly and mandatorily to all employees (§ 77 Abs. 4 BetrVG) and can serve as a legal basis for data processing under Art. 88 GDPR.

Rahmenvereinbarung oder eine Vereinbarung je System?

For most companies, a framework works agreement with annexes per system is the better approach. Principles, rights and procedures are negotiated once. New systems and features are added as an annex. This saves time with every update and ensures that the same rules apply across all systems.

Was gilt, wenn die Betriebsvereinbarung gekündigt wird?

A works agreement can be terminated with three months' notice unless agreed otherwise (§ 77 Abs. 5 BetrVG). In matters subject to co-determination, such as § 87 Abs. 1 Nr. 6 BetrVG, its provisions continue in effect until replaced by a new agreement (§ 77 Abs. 6 BetrVG). Systems are therefore not left without rules overnight.

Kann eine Betriebsvereinbarung die Verarbeitung von Beschäftigtendaten erlauben?

Yes, Art. 88 GDPR permits collective agreements as a legal basis. However, the CJEU has made clear that they must comply with the general rules of the GDPR and are subject to full judicial review (C-65/23). § 26 BDSG (Federal Data Protection Act) is in parts no longer applicable following CJEU ruling C-34/21. The agreement should therefore define purpose, necessity and protective measures with precision.

Sources

Retrieved on 23 October 2026.