Germany’s Top Labour Court Rules: Skills Gained as Works Councillor Count Toward Promotions

A trio of decisions from Germany’s Federal Labour Court (Bundesarbeitsgericht) has sharpened the obligations employers face when dealing with worker representatives. The most significant ruling: qualifications that employees acquire while serving on a works council must be considered when promotion decisions are made. Companies are now expected to track and factor in these new competencies transparently during personnel planning.

The court also clarified the ground rules for works meetings. An invitation issued in German by the electoral board is legally sufficient – no translation is required. And holding the meeting at 14:00 is explicitly permitted, even if it interrupts the working day, as the aim is to reach as many staff as possible.

A separate judgement from 1 April 2026 tightens the timeline for mass redundancies. Dismissals become invalid if the employer notifies the Federal Employment Agency before completing the consultation procedure with the works council. Crucially, the error cannot be fixed by a later notification. The message from Karlsruhe is unambiguous: the sequence of consultation and notification must be observed to the letter.

Infrastructure law clears parliament — with a retroactive twist

While the BAG rulings grabbed attention, the Bundestag passed the Infrastructure Future Act on 26 June 2026. The law is designed to accelerate planning and approval procedures, partly through digitalisation. A central feature: infrastructure projects deemed to be in the overriding public interest will receive priority treatment.

Just two days earlier, on 24 June, the relevant parliamentary committees inserted a key amendment. Federal states and municipalities are now permitted to set up special-purpose funds (Sondervermögen) to cover their own shares of federal programmes. The provision applies retroactively from 24 October 2025, giving local authorities immediate financial flexibility.

The Federal Building Ministry, meanwhile, is pushing ahead with a reform of the Building Code (Baugesetzbuch). A draft circulated in the spring prioritises housing construction and limits procedural deadlines to two years. Digital tools such as XPlanung and electronic public participation feature prominently. A cabinet decision is expected before the summer recess.

Digital euro moves to trilogue stage

On 23 June, the European Parliament’s economic committee approved the legal basis for a digital euro by 43 votes to 14. Trilogue negotiations between the EU institutions now begin. A pilot phase is scheduled for mid-2027, with a potential official launch no earlier than 2029. Users would face a holding limit of between 500 and 3,000 euro.

Regional initiatives and international ties

At the local level, cities are increasingly tapping outside expertise. Bamberg’s city council decided on 24 June to create an economic advisory board to support its economic senate. In Brandenburg, the regional economic committee used the week of 22–26 June for a fact-finding trip to Britain, concentrating on hydrogen technology and post?Brexit trade relations.

Austrian chamber posts €7.7m loss, plans 200 job cuts

Across the border, the Austrian Federal Economic Chamber (Wirtschaftskammer Österreich) reported a consolidated loss of approximately €7.7 million for 2025. In response, the chamber’s parliament voted to cut 200 of the 800 positions at the federal level. The assembly approved several motions on pay transparency and parcel taxes, but rejected a reform of the construction workers’ holiday and severance fund. A reform group is now examining whether to cap reserves, which stand at roughly €2 billion.

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