When is the works council’s consent required for the engagement of managers in matrix organizations?

Where managers are employed by one group company but perform their duties in the organization of another group company, their engagement in the receiving organization may be subject to co-determination under section 99(1) sentence 1 of the German Works Constitution Act (Betriebsverfassungsgesetz – “BetrVG”). In a decision dated January 27, 2026 (Federal Labor Court, 27.01.2026...

Reading time: 4 min

Employment law

Works council may exercise full co-determination rights for the time being despite foreign affiliation

The Berlin-Brandenburg Regional Labor Court has confirmed in an interim injunction that the works council of an airline elected at Berlin Brandenburg Airport (BER) may provisionally exercise its co-determination rights under works constitution law—despite the airline’s headquarters being located abroad and the unresolved final classification of the stationing location as an organizational unit eligible for...

Reading time: 4 min

Employment law

Legitimate interest in obtaining a court declaration of status as a shareholder in a limited liability company, despite being listed in the shareholder register

A shareholder of a limited liability company (GmbH) may seek a court declaration of his or her shareholder status. This applies even if the shareholder is already listed in the shareholder register maintained in the Commercial Register. The Federal Court of Justice clarified this (judgment of April 21, 2026, II ZR 50/25). Facts of the...

Reading time: 5 min

Corporate law

Update on the Labelling of Vegan and Vegetarian Foods

For years, the EU has been debating which designations may be used to label vegan and vegetarian meat substitute products. The central issue is whether terms such as “burger” or “schnitzel” may also be used for vegetarian and vegan alternatives. A compromise has now been reached in the ongoing EU legislative process. Key points at...

Reading time: 3 min

Food Law

Revocation of the right to work from home: Limits of management’s authority

An order requiring an employee who works half the time from home to report to the workplace in person from Monday through Thursday is legally invalid. The key point is that a stricter requirement to be present at the workplace cannot be justified simply by citing the withdrawal of a “work-from-home privilege,” but rather requires...

Reading time: 4 min

Employment law

Google is liable for AI errors

In a final judgment dated May 28, 2026 (case no. 26 O 869/26, n.rk), the Munich I Regional Court, in preliminary injunction proceedings, prohibited Google from using its “AI Overview” feature to disseminate several specific, defamatory, and false factual claims about two Munich-based publishers. In the overview displayed, the AI had attributed fraudulent activities (including...

Reading time: 4 min

Intellectual Property and Competition Law

Repairing instead of replacing – How the European “Right to Repair” is changing German sales law

The landscape of German sales law is once again undergoing “restructuring”: At the EU level, Directive (EU) 2024/1799 on promoting the repair of goods establishes another building block of the “Right to Repair,” which is likely to have a comprehensive impact on German law. The goal is to make repairs more attractive than buying new...

Reading time: 5 min

Commercial and Distribution Law

The Federal Fiscal Court once again addresses the requirements for the actual implementation of a profit transfer agreement

In its ruling of November 2, 2022 (I R 37/19), the Federal Fiscal Court (BFH) had already addressed the requirements for the actual implementation of a profit transfer agreement under Section 14(1), sentence 1, no. 3, sentence 1 of the Corporation Tax Act (KStG). In that decision, it clarified that the actual implementation of the...

Reading time: 5 min

Tax Law

Green Claims under the new UWG – Implementation of the EmpCo Directive (EU) 2024/825

With the Third Act amending the Unfair Competition Act (UWG), Germany is implementing the requirements of the Directive on Empowering Consumers for the Green Transition (EU) 2024/825 (“EmpCo Directive”) into national law. The new rules on environmental claims (“green claims”) and sustainability labels will apply from September 27, 2026 without any transitional period. The legislator...

Reading time: 4 min

Food Law

The new ICC Arbitration Rules 2026: An overview of the key changes

The International Chamber of Commerce (ICC) is one of the world’s leading arbitration institutions. It has now published its new Rules of Arbitration (available here). These will come into force on 1 June 2026 and will apply to all proceedings instituted on or after that date (“ICC Rules 2026”). With this revision, the ICC is...

Reading time: 9 min

Litigation and Arbitration

Construction law

Plant Construction

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