The Bundesarbeitsgericht (Federal Labour Court) has just ruled: employees who belong to several establishments of a single company hold active voting rights in all of those establishments in the works council election — and this also applies to managers within an internal corporate matrix structure.
The implications of the judgment
This judgment could have direct implications for the next works council election. Companies with matrix structures should be prepared for the possibility that more employees than before may be eligible to vote and to stand for election. This could significantly affect the composition of the works council and may lead to larger bodies and a higher voter turnout.
The specific case
In a recent case from the IT sector, the court declared a challenge to the works council election inadmissible. The lower instances had argued that managers were entitled to vote in only one establishment. The Federal Labour Court, however, made clear that integration into the operational organisation is decisive, and that multiple voting eligibility may therefore be possible. The Landesarbeitsgericht (Regional Labour Court) must now clarify further details (Federal Labour Court, decision of 22 May 2025 – 7 ABR 28/24).
Employers and works councils should already be preparing for the consequences of this decision in order to organise the next election in a legally compliant manner and to inform employees of their rights. If required, attorney Ms Babette Kusche will be glad to advise you.
