New ERP system, cloud migration, or AI tool -- and then the works council stops the project. What is a nightmare scenario for many IT project managers can be reliably prevented by involving the works council early. This guide shows when co-determination rights apply, how to constructively involve the works council, and which mistakes to avoid.
The good news: A well-informed works council can actually accelerate your IT project. They know the workforce's concerns, can build acceptance early, and help minimise change management risks.
Co-Determination in IT Projects: The Legal Basis
In Germany, the central provision is Section 87(1) No. 6 of the Works Constitution Act (BetrVG): The works council has a co-determination right regarding the "introduction and use of technical devices designed to monitor employee behaviour or performance."
Crucially: It is sufficient that the software is capable of monitoring behaviour -- it does not have to be intended for that purpose. A project management tool that logs who processed which task when falls under this provision. A CRM system that counts calls and emails does too. Practically any software with a login function and activity log triggers co-determination rights.
Other relevant sections:
- Section 90 BetrVG (right to information): When planning new work processes and workplaces
- Section 87(1) No. 2 BetrVG: Working time rules (relevant for time-tracking software)
- Section 87(1) No. 1 BetrVG: Order in the company (e.g. usage policies for IT systems)
- Section 111 BetrVG (operational change): For fundamental IT changes that can cause significant disadvantages for the workforce
The Federal Labour Court has repeatedly made clear that what matters is not the employer's intention but the technical possibility. Even if you never plan to use the logging feature -- if the software can do it, co-determination applies.
When Must the Works Council Be Involved?
Always co-determination for:
- Introduction of new software (ERP, CRM, HRM, project management tools)
- Cloud migration of existing systems (SaaS conversion)
- AI tools and automated decision systems
- Time tracking and access control systems
- Email and communication systems (Microsoft 365, Slack, Teams)
- Monitoring and reporting tools
- GPS tracking in company vehicles
- Video conferencing systems with recording functions
Often underestimated:
- Updates and upgrades: Significant functional extensions can also trigger co-determination
- Test phases and pilots: Even a test phase with real user data triggers co-determination
- Interfaces: When systems are connected and create new monitoring possibilities
How to Properly Involve the Works Council
Phase 1: Information (before purchase decision)
- Inform the works council about the planned project and reasons
- Present the systems under consideration
- Explain what data will be collected and processed
- Offer demos and test accounts
Phase 2: Consultation (during selection)
- Involve the works council in requirements definition
- Discuss data protection aspects and access concepts
- The works council can bring in external expertise at the employer's expense
Phase 3: Negotiation (before introduction)
- Negotiate the works agreement
- Clarify data storage, access rights, and deletion periods
- Allow sufficient time -- negotiations can take 4-12 weeks
The Works Agreement for IT Systems
The works agreement is the central document that governs the use of the IT system. A good works agreement should cover the following points:
| Area | Content | Example |
|---|---|---|
| Purpose limitation | What is the system used for? | "The system is used exclusively for project planning." |
| Data collection | What data is collected? | Login times, task status, processing duration |
| Evaluation prohibition | What must not be evaluated? | "Individual performance measurements based on system data are prohibited." |
| Access rights | Who can see what? | Role concept with defined permission levels |
| Deletion periods | When is data deleted? | Log data after 90 days, project data after completion + 1 year |
| Training | How are employees trained? | Mandatory training before first use |
Instead of negotiating a separate agreement for every system, a framework works agreement for IT systems is recommended. It defines general principles (data protection, evaluation bans, training duties) and is supplemented by annexes for individual systems. This speeds up future rollouts considerably.
Consequences of Non-Involvement
Bypassing the works council risks massive project delays and costs:
- Injunction: The works council can apply to the labour court and have the use of the system stopped by a preliminary injunction -- often within a few days.
- Cease-and-desist claim: Systems that are already in use may have to be switched off until an agreement is reached.
- Ban on using evidence: Data collected without co-determination may, in case of doubt, not be used for personnel measures.
- Loss of trust: A works council that was bypassed will be considerably less willing to cooperate in future projects.
Practical Timeline: Works Council in IT Projects
| Phase | Timing | Action |
|---|---|---|
| Initial information | Week 1-2 | Inform works council about project plan, present goals and timeline |
| Requirements analysis | Week 2-4 | Invite works council representatives to requirements workshops |
| Tool selection | Week 4-8 | Let works council participate in demos and tests |
| Agreement negotiation | Week 6-12 | Negotiate and conclude works agreement |
| Training | Week 10-14 | Train works council members in advance (multipliers) |
| Rollout | Week 12-16 | Go-live after agreement is signed |
| Evaluation | Week 24+ | Joint evaluation with works council, adjust agreement if needed |
7 Practical Tips for Collaboration
- Inform early, not when everything is finished: The later the works council learns about it, the more mistrust develops. Inform them as early as the idea stage.
- Communicate as equals: The works council is not an obstacle but a partner provided for by law. Treat it accordingly.
- Avoid technical jargon: Explain in plain language what the system can and cannot do. Show concrete screenshots.
- Address data protection proactively: Disclose from the start which data is collected. Show which evaluations are possible -- and which ones you want to rule out.
- Accept external expertise: If the works council brings in an IT expert, see it as an opportunity: an external expert can help reach agreement faster.
- Design the pilot phase together: Include works council members as pilot users. That way they gain their own experience and can negotiate on a sounder basis.
- Use digital tools for transparency: With PathHub AI, you can transparently document the entire project progress and involve all stakeholders -- including the works council.