Employees who work in several companies within the same company should also have the right to vote in works council elections. The right to vote in one company does not preclude a further right to vote in another company in which the employee is also integrated.
Company election challenge due to alleged lack of eligibility to vote
An employer of an IT services company with several sales locations had contested the election of the works council on the grounds that managers from other companies were not entitled to vote in the election. This applies in particular to companies with matrix structures. In these companies, employees from different areas and organizational units work together in teams and are directed by so-called matrix managers who are not executives. (so-called company-internal matrix structure). As a result, only employees who belong to the relevant company are entitled to vote; multiple voting rights are out of the question. The election of the works council was therefore invalid due to the lack of voting rights of the managers.
Legal requirements for eligibility to vote in works council elections
According to Section 7 sentence 1 BetrVG, all employees of the company who have reached the age of 16 are entitled to vote. Accordingly, an employee’s right to vote is based on their length of service, i.e. whether and to what extent they are integrated into the company organization. Section 7 sentence 1 BetrVG does not exclude the right to vote because the employee is already integrated into another company. This means that employees of companies with an internal company matrix structure may also vote in the works council elections of several companies if they are integrated into their company organization.
Decision of the courts
The Seventh Senate of the Federal Labor Court has left open the extent to which these requirements are met in the case described. However, it overturned the decision of the Regional Labor Court that matrix managers only have an active right to vote in the company to which they are assigned due to the affirmation of multiple voting rights and referred the matter back to the Regional Labor Court for further clarification (BAG, decision of May 22, 2025, Ref.: 7 ABR 28/24).
Can employees in several companies be entitled to vote in works council elections?
Yes, according to the decision of the BAG (case reference: 7 ABR 28/24), employees who are actually integrated into the organization of several companies can also participate in the works council election in several companies. Multiple eligibility to vote is possible.
What does the decision mean for companies with matrix structures?
The matrix structure is not an independent feature of works constitution law. Managers who are employed in several companies may be entitled to vote in all of these companies. Companies should check their electoral lists accordingly.
What are the consequences of an incorrect list of voters in a works council election?
If employees who are entitled to vote are wrongly excluded from the election or persons who are not entitled to vote are admitted, the works council election can be contested. A successful challenge renders the election invalid.
