DE

ArbVG · works council · co-determination

ArbVG §§ 96/96a: What role does labour law play in AI governance?

By Ing. Mag. Patrick Eiler

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. AI governance in Austrian financial institutions does not end with the EU AI Act.

Why does the ArbVG matter for AI?

Mainly because of works council information rights and co-determination for control measures or automated employee-data processing systems. Austrian labour constitution law contains several entry points for this.

Which ArbVG provisions are key for AI?

§ 91(1), § 96(1) no. 3 and § 96a ArbVG; § 96a has exceptions that need case-by-case review.

ProvisionMeaning for AI
§ 91 para. 1 ArbVGGeneral works council information right on matters affecting employees' economic, social, health or cultural interests; § 91 para. 2 adds information on employee data processed by automated means. (§ 89 ArbVG, by contrast, concerns the works council's monitoring powers.)
§ 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, and for systems used to evaluate employees. Not every processing of employee data requires consent: the conditions and exceptions of § 96a must be assessed case by case.

Which AI systems are typically relevant under the ArbVG?

Five types: HR AI in recruiting, performance or quality monitoring, call-centre analytics, chatbots with employee data and AI-supported sales steering.

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 happens if the works council is involved too late?

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 should a works agreement on AI cover?

Six points: purpose and limits, data categories, analyses and access, human oversight, retention and deletion, and change processes.

  • 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

How is the ArbVG review built 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.

Ing. Mag. Patrick Eiler

About the author

Ing. Mag. Patrick Eiler

Patrick Eiler advises banks and insurers in Vienna on regulatory reporting, data architecture and AI compliance. More than twenty years in banking, insurance and financial services; speaker at the Hypo-Verband (expert session of 23 September 2026).

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