EN

ArbVG · works council · co-determination

ArbVG §§ 96/96a: the labour-law component of AI governance

AI governance in Austrian financial institutions does not end with the EU AI Act. As soon as AI systems process employee data, monitor performance or support HR decisions, information and co-determination rights of the works council must be assessed.

Why ArbVG matters for AI

Austrian labour constitution law contains several entry points for AI systems used in companies. Particularly relevant are works council information rights and co-determination for control measures or automated employee-data processing systems.

Key provisions

ProvisionMeaning for AI
§ 89 ArbVGWorks council information right on matters affecting employees' economic, social, health or cultural interests.
§ 96 para. 1 no. 3 ArbVGConsent requirement for control measures and technical systems for employee control where human dignity is affected.
§ 96a ArbVGCo-determination for systems used for automated collection, processing and transmission of personal employee data.

Typical AI systems with ArbVG relevance

AI systemAssessment
HR AI in recruitingApplicant data, scoring, selection support and transparency duties should be reviewed.
Performance or quality monitoringControl measure and human-dignity relevance need careful assessment.
Call-centre analyticsEmployee interactions, handling times and quality scores may be co-determination relevant.
Copilot or chatbot with employee logsLogging, evaluation and purpose limitation should be reviewed.
AI-supported sales managementTarget measurement, ranking and personal evaluations should be assessed under §§ 96/96a.

What can happen without clean involvement

An AI system can be technically well documented and aligned with the EU AI Act, yet still become problematic under Austrian labour constitution law if works council involvement, purpose limitation and works agreement are not considered in time. The risk lies not only in legal implementation, but also in reputation, project delay and data protection.

What a good works agreement should cover

  • purpose and limits of the AI system
  • data categories and data sources
  • evaluations, roles and access permissions
  • human oversight and review rights
  • retention periods and deletion concept
  • change process for material system or purpose changes

Integration into AI governance

The ArbVG review belongs as a field in the AI inventory. For each system, it should be clear whether employee data is affected, whether control functions exist and whether works council involvement or a works agreement is required.

Would you like to know where your institution stands?

We can discuss your specific situation and prioritise the next steps towards auditable AI governance.

Request an initial conversation
Notice: This page is for general information on labour-law interfaces of AI governance and does not replace employment-law advice. Status: June 2026.