{"id":22379,"date":"2026-10-09T12:27:21","date_gmt":"2026-10-09T10:27:21","guid":{"rendered":"https:\/\/www.softdecc.com\/knowledge-base\/lms-works-council-company-agreement\/"},"modified":"2026-10-20T12:09:45","modified_gmt":"2026-10-20T10:09:45","slug":"lms-works-council-company-agreement","status":"publish","type":"page","link":"https:\/\/www.softdecc.com\/en\/knowledge-base\/lms-works-council-company-agreement\/","title":{"rendered":"LMS and the Works Council"},"content":{"rendered":"\t\t
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Made in Germany \u00b7 ISO 27001 \u00b7 GDPR-compliant<\/p>\n\t\t\t\t\t

LMS and the Works Council: How to Successfully Implement It Through a Works Agreement<\/h1>\n\t\t
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In Germany, a learning management system is generally subject to co-determination\u2014not because it is intended for monitoring, but because it collects usage and learning data that is objectively suitable for performance or behavioral monitoring. Involving the works council early on shortens the implementation process. Those who involve the works council too late risk a fully configured system being unable to go live for months.

This article explains which employee participation rights apply, what should be included in a works agreement for an LMS, and how you can significantly simplify the negotiation process with a highly configurable system.

Note:<\/em><\/strong> This article provides a practical overview and is not a substitute for legal advice.<\/em><\/p>\n\t\t\n<\/div>\n\n<\/div>\n

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\n\t\tGDPR-compliant LMS \u2192\n\t<\/a><\/p>\n\t\t\n<\/div>\n

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\n\t\tFree Consultation \u2192\n\t<\/a><\/p>\n\t\t\n<\/div>\n\n<\/div>\n

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Skills Development<\/p>\n\t\t\n<\/div>\n\n\t\t\t\t\t

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Assessment<\/p>\n\t\t\n<\/div>\n\n\t\t\t\t\t

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Certification<\/p>\n\t\t\n<\/div>\n\n\t\t\n<\/div>\n\n<\/div>\n\t\t\t\"four\t\t\n<\/div>\n

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\n \t\t\t\"e-learning-platform\"\/\t\t\n<\/div>\n
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Relevance<\/p>\n\t\t\t\t\t

Why an LMS Is Subject to Employee Participation<\/h2>\n\t\t\t\t\t

Section 87(1)(6) of the Works Constitution Act (BetrVG)<\/strong> is central: The works council has a say in the introduction and use of technical devices intended<\/em> to monitor the behavior or performance of employees. According to established case law of the Federal Labor Court, the objective suitability<\/strong> for monitoring is sufficient for this purpose\u2014the employer\u2019s intent is irrelevant.

An LMS typically tracks:<\/p>\n\t\t

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\u2713<\/strong><\/p>\n\t\t\t\t\t

Registration and Hours of Operation<\/p>\n\t\t\n<\/div>\n\t\t\t\n

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\u2713<\/strong><\/p>\n\t\t\t\t\t

Course Duration and Progress<\/p>\n\t\t\n<\/div>\n\t\t\t\n

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\u2713<\/strong><\/p>\n\t\t\t\t\t

Test and Examination Results<\/p>\n\t\t\n<\/div>\n\t\t\t\n

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\u2713<\/strong><\/p>\n\t\t\t\t\t

Completion Rates, Certificates, and Delays<\/p>\n\t\t\n<\/div>\n\t\t\t\n

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\u2713<\/strong><\/p>\n\t\t\t\t\t

For AI features: Recommendations based on individual learning histories<\/p>\n\t\t\n<\/div>\n\n<\/div>\n\t\t\t

In theory, each of these data points can be linked to a specific individual and analyzed. As a result, the threshold set forth in \u00a7 87(1)(6) of the BetrVG is practically always met. <\/p>\n\t\t\n<\/div>\n\n<\/div>\n\n<\/div>\n

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Legal Provisions<\/p>\n\t\t\t\t\t

An Overview of Other Equity Interests<\/h2>\n\t\t\t\t\t

Co-determination is not limited to the issue of monitoring. Depending on the scope of the LMS's functionality, additional rights may apply: <\/p>\n\t\t\t\t

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Regulation<\/span><\/th>Contents<\/span><\/th>Relevance to the LMS<\/span><\/th><\/tr><\/thead>
\u00a7 90 BetrVG<\/span><\/td>Information and Consultation Regarding the Planning of Technical Systems\u2014Explicitly Including the Use of AI<\/span><\/td>The works council must be informed as early as the selection phase, not just before the system goes live<\/span><\/td><\/tr>
\u00a7 87(1)(6) BetrVG<\/span><\/td>Co-determination regarding technical devices for monitoring performance and behavior<\/span><\/td>Core provision\u2014basis for the works agreement<\/span><\/td><\/tr>
\u00a7 80(3) BetrVG<\/span><\/td>Consultation with experts; this is considered necessary for AI-related matters<\/span><\/td>Plan for AI-supported functions (recommendations, content generation)<\/span><\/td><\/tr>
\u00a7 94 BetrVG<\/span><\/td>Consent to General Performance Evaluation Principles<\/span><\/td>Relevant when competency assessments or skill matrix data are incorporated into performance evaluations<\/span><\/td><\/tr>
Sections 96\u201398 of the BetrVG<\/span><\/td>Participation in Workplace Vocational Training<\/span><\/td>Relevant to the Selection of Participants and the Implementation of Training Programs<\/span><\/td><\/tr><\/tbody><\/table><\/div><\/div>\t\t\t\t<\/div>\n\t\t\n<\/div>\n\n<\/div>\n\n<\/div>\n
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Recommendation<\/p>\n\t\t\t\t\t

What Should Be Included in a Company Agreement for an LMS<\/h2>\n\t\t\t\t\t

The following checklist covers the provisions that are regularly negotiated in LMS operating agreements:<\/p>\n\t\t

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\u2713<\/strong><\/p>\n\t\t\t\t\t

Purpose and Scope<\/strong> \u2014Which employee groups, locations, and modules are covered?<\/p>\n\t\t\n<\/div>\n

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\u2713<\/strong><\/p>\n\t\t\t\t\t

System Description<\/strong> \u2013 usually provided as an attachment: modules, functions, hosting model, interfaces<\/p>\n\t\t\n<\/div>\n

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\u2713<\/strong><\/p>\n\t\t\t\t\t

Data Catalog<\/strong> \u2013 What personal data is collected, and for what purpose?<\/p>\n\t\t\n<\/div>\n

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\u2713<\/strong><\/p>\n\t\t\t\t\t

Roles and Access Rights<\/strong> \u2013 Who Can View Which Data (Employees, Managers, HR, L&D, Administration)?<\/p>\n\t\t\n<\/div>\n

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\u2713<\/strong><\/p>\n\t\t\t\t\t

Permitted Reports<\/strong> \u2013 Comprehensive List of Authorized Reports, e.g., Proof of Mandatory Training<\/p>\n\t\t\n<\/div>\n

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\u2713<\/strong><\/p>\n\t\t\t\t\t

Prohibition on monitoring performance and conduct<\/strong> \u2014an explicit ban on the use of such monitoring for labor law purposes, with clearly defined exceptions (e.g., statutory obligations to provide evidence)<\/p>\n\t\t\n<\/div>\n

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\u2713<\/strong><\/p>\n\t\t\t\t\t

Test Results<\/strong> \u2013 Visibility, Aggregation, and Test Repeatability<\/p>\n\t\t\n<\/div>\n

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\u2713<\/strong><\/p>\n\t\t\t\t\t

Learning Time<\/strong> \u2013 Mandatory Training Counts as Work Time; Regulations on Voluntary Learning<\/p>\n\t\t\n<\/div>\n

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\u2713<\/strong><\/p>\n\t\t\t\t\t

AI Features<\/strong> \u2013 Transparency Regarding Recommendation Logic, No Automated Hiring Decisions<\/p>\n\t\t\n<\/div>\n

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\u2713<\/strong><\/p>\n\t\t\t\t\t

Interfaces<\/strong> \u2013 What data flows from HR systems to the LMS and vice versa?<\/p>\n\t\t\n<\/div>\n

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\u2713<\/strong><\/p>\n\t\t\t\t\t

Retention and Deletion Periods<\/strong> \u2013 Aligned with Legal Retention Requirements for Records<\/p>\n\t\t\n<\/div>\n

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\u2713<\/strong><\/p>\n\t\t\t\t\t

Change Management Process<\/strong> \u2013 How Are New Modules, Reports, or Updates Handled?<\/p>\n\t\t\n<\/div>\n

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\u2713<\/strong><\/p>\n\t\t\t\t\t

Works Council Oversight Rights<\/strong> \u2013 Access to Configuration and Logs<\/p>\n\t\t\n<\/div>\n\n<\/div>\n\n<\/div>\n\n<\/div>\n

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From Real-World Experience<\/p>\n\t\t\t\t\t

Common Points of Conflict\u2014and How to Resolve Them<\/h2>\n\t\t\n<\/div>\n
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\"Managers should be able to see who hasn't completed their mandatory training.\"<\/h5>\n\t\t\t\t\t

This is legitimate because compliance documentation requires personal data. The solution lies in purpose limitation: Managers can see the completion status<\/em> (completed \/ pending \/ overdue), but not the test results, processing times, or number of attempts. <\/p>\n\t\t\n<\/div>\n\n<\/div>\n

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\"Test results must not be used to make personnel decisions.\"<\/h5>\n\t\t\t\t\t

Frequently agreed upon: Results are relevant only to the learner and, if applicable, for certification purposes; evaluations are conducted exclusively on an aggregated basis for groups of a minimum size.<\/p>\n\t\t\n<\/div>\n\n<\/div>\n\n<\/div>\n

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\"Data retention periods conflict with the obligation to retain records.\"<\/h5>\n\t\t\t\t\t

A classic conflict of interests: Records of training and qualifications must sometimes be retained for years, whereas usage data does not. The company policy should distinguish between records<\/em> (long retention periods) and usage data<\/em> (short retention periods). <\/p>\n\t\t\n<\/div>\n\n<\/div>\n

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\"Every update requires a new negotiation.\"<\/h5>\n\t\t\t\t\t

A change management process based on categories has proven effective: bug fixes and updates that do not involve new data processing are simply displayed, while new modules or reports require approval.<\/p>\n\t\t\n<\/div>\n\n<\/div>\n\n<\/div>\n\n<\/div>\n\n<\/div>\n

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Decision<\/p>\n\t\t\t\t\t

Master Employment Agreement or Individual Employment Agreement?<\/h2>\n\t\t\t\t\t

Many companies already have a framework IT work agreement<\/strong> that sets out general principles for IT systems. The LMS is then simply incorporated as an appendix (system description, data catalog, role concept)\u2014which saves a considerable amount of time. If there is no framework agreement, it\u2019s worth creating a separate LMS operating agreement that allows new modules to be added via appendices. <\/p>\n\t\t\n<\/div>\n\n<\/div>\n\n<\/div>\n\n<\/div>\n

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Proven Process<\/p>\n\t\t\t\t\t

Involve the works council early on<\/h2>\n\t\t\t\t
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Planning phase:<\/h3>\r\n

Inform the works council about the project (Section 90 of the Works Constitution Act (BetrVG))\u2014ideally as early as the vendor selection phase.<\/p>\r\n <\/div>\r\n <\/div>\r\n\r\n

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System Description & Data Catalog:<\/h3>\r\n

Work with the vendor to draft it. The more specific it is, the shorter the negotiation will be. <\/p>\r\n <\/div>\r\n <\/div>\r\n\r\n

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Test installation:<\/h3>\r\n

Enable the works council to review roles, visibility settings, and reports on its own.<\/p>\r\n <\/div>\r\n <\/div>\r\n\r\n

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Drafting and Negotiation:<\/h3>\r\n

Based on the checklist, with a clear distinction between supporting documentation and usage data.<\/p>\r\n <\/div>\r\n <\/div>\r\n\r\n

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Completion Before Go-Live:<\/h3>\r\n

The system must not be used in a production environment without authorization.<\/p>\r\n <\/div>\r\n <\/div>\r\n<\/div>\r\n\r\n