Description
On 28 January 2026, the German Federal Labour Court (Bundesarbeitsgericht – BAG) issued three landmark decisions (Ref. 7 ABR 23/24, 7 ABR 26/24, and 7 ABR 40/24) regarding the eligibility of delivery zones to elect works councils.
The rulings concerned an international food delivery service operating with a 'hub and spoke' model. The company differentiates between 'hub cities', which contain administrative staff and local management, and 'remote cities', which serve as delivery areas for couriers managed via a digital application.
In 2022 and 2023, separate works councils were elected in several remote cities. The employer challenged these elections, arguing that the remote cities did not constitute independent establishments or autonomous parts of establishments within the meaning of the German Works Constitution Act (Betriebsverfassungsgesetz (BetrVG)). The German regional labour courts ruled in favour of the employer and declared the elections void. The works councils’ appeals on points of law to the BAG were unsuccessful.
The court ruled that 'remote cities' do not meet the criteria for an 'independent operation'. Managing delivery drivers via an app and grouping them into geographical zones with a shared roster does not substitute for a local management structure.
The existence of a shared interest among drivers in a specific location is insufficient to establish the legal status of an independent operation.
The BAG maintains that traditional definitions of 'establishment' apply to digitalised work without modification. Consequently, couriers in 'remote cities' without local management cannot elect separate works councils. They are instead considered part of the central operation or the nearest 'hub city' for the purposes of collective representation. This ruling prevents the 'atomisation' of co-determination by ensuring that works councils are only formed at levels where management has the actual authority to negotiate and implement decisions
- Keywords
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employment status,
collective bargaining
- Actors
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Platform,
Employee organisation,
Court
- Sector
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Transportation and storage
Sources