Successfully shaping labor law transformation projects
Series of articles on employment law transformation projects
Digitalization, modernization, automation and demographic change – there are many drivers for comprehensively rethinking working methods and structures.
For some years now, we have observed in our practice that our clients' reorganization projects are becoming increasingly complex, comprehensive and holistic.
Whereas clients used to approach us with a clear, definable goal in mind, the focus is now often on more comprehensive and long-term change as a whole. The aim is no longer to "simply" outsource or integrate departments, but to modernize groups, companies and businesses as a whole through transformation.
The challenges of such projects are extensive:
The implementation of transformation projects regularly requires a large number of changes to be implemented simultaneously. Company structures are reorganized, new software is introduced, automation is implemented, working methods and processes are adapted, employees are (re)qualified and tasks and responsibilities are changed.
The sub-steps of a transformation are also often interlinked or interdependent and therefore need to be coordinated accordingly during implementation. Planning also requires a certain degree of flexibility and agility, as concrete target images – at least in part – still have to be finalized and concretized during the implementation of the project steps (e.g. in the case of waterfall planning).
However, the legal framework conditions also apply unchanged to the implementation of modern transformation projects. In particular, where works councils exist, the participation rights of works councils must be observed for the implementation of measures that constitute operational changes in accordance with Section 111 BetrVG. In particular, this means that works councils must be informed specifically and comprehensively about the content and scope of the planned changes and the impact on employees before the measures are implemented. The conclusion of a reconciliation of interests must at least be attempted. Furthermore, there is also a right of co-determination when introducing software or other IT technology. The balancing act between flexible, agile and modern planning and meeting the legal requirements for safeguarding co-determination rights is a key challenge of transformations.
Another typical difficulty of transformations is that the implementation of digitalization, automation and other adjustments to working conditions often leads to a significant change in working conditions. The qualification and motivation of employees is therefore a clear focus topic of transformations.
Our advisory practice has also changed as a result of these new challenges. The successful implementation of transformation projects is a core topic of our employment law practice group.
While the focus of support for a "classic reorganization" is on the legally secure implementation of operational changes in accordance with Section 111 of the German Works Constitution Act (BetrVG), the consulting approach when supporting transformation projects is more creative, strategic and comprehensive.
Due to the complexity of the planning, our work focuses on careful advice on strategies and options for action in the preparation phase, active support during negotiations and the development of options for flexible implementation.
As part of our "Transformation" event series (only in German), we have already had the opportunity to talk to renowned interdisciplinary experts about key issues and proven solutions from practice. This series of publications also deals with various key legal and practical issues relating to transformations:
- How do you deal with the legal requirements of company and corporate co-determination when implementing transformations?
- How do you manage the planning and find the right strategy?
- How can communication, information and employee motivation be successful?
- How do you successfully implement qualifications?
- What options are there for state funding of qualifications?
- How does the transformation affect works councils, works agreements and collective agreements?
- What negotiation tactics and contractual instruments are available to make planning flexible?
- And what options do you have if jobs have to be cut?
We look forward to providing you with well-founded and practical insights and accompanying you on your path through the transformation.
Further articles in this series:
