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New Work

Checklist: "Matrix structures"

Larger and international corporations in particular no longer operate within the traditional structures of individual companies. The digitalization of the world of work is increasingly creating both the need to enable cross-company collaboration beyond traditional structures and the technical possibilities that are often required for this. This gives rise to a wide range of implications and challenges, not only in terms of corporate law, but also in terms of labor law. The formation of cross-company, cross-location and cross-national teams, the establishment of matrix cells under the leadership of so-called matrix managers, result, in particular, in these points that need to be considered:

Checklist:

he formation of cross-company, cross-location and cross-national teams, the establishment of matrix cells under the leadership of so-called matrix managers, result, in particular, in these points that need to be considered.

I. Works Constitution Law

Particular attention should be paid to the regulations under works constitution law in this context. This concerns in particular:

  • Concept of a company
    - Emergence of a joint operation through cross-company cooperation
    - Creation of a qualified part of an establishment through cross-company cooperation?

  • Formation of (additional bodies) for employee representation: working groups

  • If applicable, "dual seniority" of the matrix manager
    - Influence on voting rights
    - Influence on threshold values

  • Co-determination in the company
    - Co-determination in the case of "recruitment" of the matrix manager into the matrix cell?
    - Transfer due to integration into the matrix structure?

  • Change in operation due to introduction of matrix structure?

II. Individual labor law

Similar to employee leasing, in matrix structures the employer role is often divided between the contract employer and the so-called "matrix manager". As the head of the cross-company team, the matrix manager essentially assumes the right to issue technical and sometimes also disciplinary instructions, while this otherwise remains with the contractual employer.

  • Inclusion of a corresponding provision in the employment contract
    - Transfer of the right to issue instructions requires the employee's consent
    - Clear division of responsibility, e.g. for issues such as sick leave and vacation

  • Effects on social selection or options for continued employment in the event of dismissal