Germany's New Co-Determination Software Arrives as Courts and Regulators Tighten HR Compliance
02.07.2026 - 06:25:10 | boerse-global.de
A midsized German chemical firm faces a Kafkaesque dilemma: hire a new engineer quickly, but first secure works council approval under the Betriebsverfassungsgesetz (BetrVG). For decades, that meant printed forms, email chains, and days of back-and-forth. Starting July 1, an alternative exists.
HRflows, a Berlin-based software company, launched digital workflows tailored to co-determination obligations under Paragraphs 99, 102 and 87 of the BetrVG. The tool integrates directly into systems like SAP SuccessFactors and targets enterprises with more than 1,000 employees, especially in chemicals, pharmaceuticals, and automotive manufacturing. Pricing varies by model; all data is hosted in Germany and complies with the GDPR. The promise: accelerate approvals for hires, transfers, and dismissals while keeping every step legally auditable.
Speaking of documentation accuracy – the same principle applies to managing hazardous substances. A COSHH violation can cost your company dearly, especially in a chemical environment where oversight is common. The free COSHH Toolkit provides 43 ready-to-use templates and checklists that help you meet your legal duties for risk assessments. Download the free COSHH Toolkit
BAG Rulings Raise the Stakes for Documentation Accuracy
Two recent decisions by the Federal Labor Court (BAG) underline why precise record-keeping matters. On June 25, 2026, the court ruled in case 6 AZR 7/26 that a marginally inflated number of dismissals in a mass-layoff notification does not automatically void the terminations. The employer had reported 34 layoffs when only 31 or 32 occurred. Because the federal employment agency could still carry out its placement efforts, the dismissals survived legal challenge.
The situation flips for gross errors. Earlier in the first half of 2026, the BAG emphasized that a missing or severely flawed mass-layoff notification renders all resulting dismissals null and void. Under European case law, such a notification cannot be retroactively corrected. The court also clarified on February 24, 2026, that a relocation allowance in a social plan is due only when the move results from a contractually agreed clearing procedure.
Microsoft's Workplace Check-In Lands on Co-Determination Radar
Co-determination isn't limited to hiring and firing. By end of June, Microsoft rolled out a new Teams feature called "Workplace Check-in," which detects an employee's work location via the company WLAN. The function is disabled by default, but experts warn it falls under Paragraph 87(1)(6) BetrVG because it can be used for behavioral and performance monitoring. Labor lawyers advise transparent data-governance processes and early involvement of the works council before activation.
The coming EU Artificial Intelligence Act adds another compliance layer. Key deadlines for classifying AI systems arrive by August 2026. HR tools—such as those used for applicant screening or performance evaluation—are often categorized as high-risk. Companies must demonstrate documented processes and control mechanisms. Violations of transparency obligations can trigger heavy fines.
With all these regulatory changes, it's worth asking: what hazardous substances in your facility might be slipping through the cracks? Many chemical firms underestimate the breadth of COSHH requirements and the documentation needed to prove compliance. A free toolkit helps you identify overlooked risks and provides ready-to-use assessment templates. Get the free COSHH risk assessment toolkit
HR Tech Market Heats Up as Politics Weighs Dismissal Reform
Regulatory pressure hasn't cooled investor interest. Warp, a startup building an AI platform for payroll and onboarding, recently raised 55 million euros. A Boston Consulting Group study from April 2026 predicts that within two to three years, more than 50 percent of U.S. workplace roles could be reshaped by AI.
Meanwhile, Germany's federal government is debating whether to loosen dismissal protection. Proposals include exemptions for businesses with fewer than 50 employees or simplified rules for startups. Supporters argue the changes would create a more flexible labor market. Unions are mobilizing against the plan, warning that it would erode long-standing worker rights and threatening protests.
