In a German company with a works council, introducing an AI tool is usually subject to co-determination — the Betriebsrat has a genuine say, especially where a system could monitor employee performance or behaviour. Getting that sign-off is far smoother when the platform is self-hosted and demonstrably free of surveillance features, which is exactly where sovereign AI has an advantage.
Why the works council is involved
Under the Betriebsverfassungsgesetz, works councils have co-determination rights over technical systems that are suitable for monitoring employees — and the bar is “suitable for,” not “intended to.” Many cloud AI tools trip this wire without meaning to: usage analytics, admin dashboards that show who asked what, and telemetry that leaves the building all look like monitoring infrastructure, whatever the vendor’s intent.
How to prepare the conversation
Come with specifics, not reassurances
- State the purpose plainly — what the tool is for, and what it is not for.
- Show the data flows — where queries and documents go (here, nowhere outside your network).
- Show the logs — what is captured, why, who can see it, and for how long.
- Offer a Betriebsvereinbarung — a works agreement that rules out performance monitoring.
A platform you can run silently inside your own network turns each of these into a short answer. That is the underrated benefit of sovereignty: it is not only a compliance story for regulators, it is a trust story for your own employees. See no phone-home: how to verify it for the technical backing. This is general information, not legal advice; involve your works council and counsel on the specifics.
Frequently asked questions
Why does a works council get involved in software?
Under the Betriebsverfassungsgesetz, works councils have co-determination rights over technical systems that are suitable for monitoring employees' performance or behaviour. The bar is 'suitable for', not 'intended to', which is why many cloud AI tools — with usage analytics and external telemetry — trigger it.
What is a Betriebsvereinbarung?
A works agreement that pins down acceptable use and rules out performance monitoring. Offering one early, alongside transparent data flows and logging, is the fastest route to sign-off.
Sources & further reading
- Betriebsverfassungsgesetz (BetrVG) — § 87 co-determination — co-determination over technical monitoring systems
- No phone-home: how to verify it — the technical backing for these claims