Germany: Ownership of Works Council Documents – Clarification by the Munich Regional Labour Court

First Ruling on Controversial Legal Issue

On 23 July 2025, the Munich Regional Labour Court ruled on the ownership of works council documents for the first time (Ref. 11 TaBVGa 4/25), providing important legal certainty on this previously unresolved issue. Until now, there had been neither a High Court ruling nor an explicit legal provision on this issue, which regularly led to disputes between employers and works councils.

(Unusual) Case before the Munich Regional Labour Court

The case before the court was unusual in that it was not the works council that demanded the employer hand over documents, but rather the employer that demanded former works council members return works council documents. The employer primarily based its claim on its alleged ownership of the disputed documents.

Legal starting point

The legal starting point was unclear because section 40(1) of the Works Constitution Act (“BetrVG”) states that the employer must cover the costs of works council activities and section 40(2) states that the employer must provide rooms, materials, IT and office staff for meetings, consultation hours and day-to-day management. However, the Act does not contain any explicit provision regarding ownership of documents produced.

Controversy in the literature

Considerable disagreement on this issue exists in legal literature. One view was that the employer remained the owner of the facilities made available to the works council, with ownership being limited only by the purpose restriction resulting from Section 40(2) BetrVG. According to this view, the employer also becomes the owner of new items created by transforming or processing items provided.

The opposing view took a more differentiated approach, distinguishing between different types of materials. Consumable items such as paper and writing materials are subject to different rules. According to Section 950(1) sentence 2 of the German Civil Code (“BGB”), the employer loses ownership of these items because they become business documents and files of the works council once they have been written on or printed. Therefore, the employer cannot demand the return of these business documents and files at the end of a works council's term of office. Instead, ownership of these documents and files is transferred to the new works council. Furthermore, all works council members own the documents and files received and provided to the works council, including procedural files and other documents addressed to the works council.

Decision of the Munich Regional Labour Court

In its decision, the court followed the second view and ruled that the employer loses ownership of consumable materials when they are used for their intended purpose. Writing and printing on paper creates business documents and files that belong to the works council as a body. When a new works council is elected, ownership is transferred to the new council as its successor. This means that the employer cannot demand the return of the documents at the end of the term of office.

Practical consequences of the decision

This decision has significant practical consequences for both parties. For works councils, it means that they can retain ownership of their documents and must hand them over to the new works council when a new election is held. If documents are unlawfully withheld, the newly elected works council is entitled to claim their return under Section 985 BGB. To avoid disputes, a detailed handover report listing all relevant documents and their storage locations should be drawn up for the new works council at the end of the term of office.

Employers cannot claim ownership of works council documents, even though they bear the costs of the works council's activities. The funds provided are subject to purpose limitations under works constitution law, but do not establish ownership rights. Instead, employers should support proper handover processes between old and new works councils, ensuring cooperating.

Outlook

The decision of the Munich Regional Labour Court creates legal certainty regarding a previously controversial issue and offers valuable guidance in this area. It remains to be seen whether higher courts will confirm this ruling.