Last updated: July 27, 2026
When it comes to managing company parking lots, the works council has a statutory right of co-determination under Section 87 of the Works Constitution Act (BetrVG). Employers may freely allocate parking spaces and charge fees, but must coordinate such decisions with the works council. Employees with severe disabilities are entitled to accessible parking spaces.
Whether it’s a startup, a medium-sized business, or a large corporation: Every company with a central workplace must now address the question , “Where do employees park?” After all, according to a study, despite the climate debate and the shift toward sustainable mobility , two-thirds of all working people still drive to work, and the ongoing shortage of parking spaces in cities is making the parking situation increasingly precarious. Companies would therefore be wise to provide on-site parking. After all, according to surveys, the desire for a company parking spot ranks among the top ten most important employee needs—even ahead of the desire for free internet access at work.
What is the legal basis for managing company parking lots?
The importance of parking at the workplace for employees is evident from the fact that it is a recurring issue in court. Since the 1960s, many different cases related to company parking lots have been heard—ranging from the legality of parking fees to the dispute over whether designated women’s parking spaces constitute discrimination against male employees. The most important landmark rulings are as follows: Employees have no right to company parking spaces In principle, no employer is obligated to provide parking spaces for its employees. An exception applies only if the workplace is practically inaccessible by public transportation . However, employees with severe disabilities are entitled to a work environment that is accessible to them—which may include the provision of parking spaces.
Parking fees are permitted If an employer provides company parking spaces, the employer may charge a fee for their use. It does not matter whether the parking spaces are leased or part of the company premises. Even if the company parking spaces were initially free of charge, fees may be charged later—however, the employer must first terminate the “established practice” of free parking (BA-WU Regional Labor Court, Case No. 1 Sa 17/13). Parking space allocation is the employer’s decision In principle, the employer may allocate company parking spaces as it sees fit—with two important exceptions. First: The works council has a strong right of co-determination. Second: The General Equal Treatment Act (AGG) must be observed.
How can the works council be involved in parking management?
According to the Works Constitution Act, any matter within a company that relates to the organization of the workplace or the conduct of employees at the workplace must be coordinated with the works council (see § 87 BetrVG). This also includes the question of where and how employees can park their vehicles in company parking lots. If a company has a works council, it should therefore be involved in all decisions regarding parking. This approach makes sense not only from a legal standpoint: Since the works council is usually the first point of contact in disputes over parking, it should be aware of the rationale behind the rules that have been established. In addition, the works council generally has a better rapport with employees than management—therefore, it is often better equipped to communicate decisions that require explanation. What Matters to the Works Council The works council generally represents the interests of employees vis-à-vis the company. Furthermore, it is the council’s responsibility toensure equal treatment and to prevent individual employees or groups of employees from being unduly disadvantaged. The latter can lead to conflicts with management in the context of parking lot organization—for example, if managers are given preferential treatment in the allocation of parking spaces. In such a case, it is important to convincingly explain the reasons for this allocation practice to the works council and to reach an agreement. In fact, companies are not generally prohibited from allocating parking spaces according to the corporate hierarchy. However, the works council must approve this allocation procedure. The Works Council as an Ally When making decisions regarding parking regulations, every management team should therefore strive to win the works council over as an ally. If the works council and management pull together, the company is well-equipped to handle potential disputes in the company parking lot—lawsuits filed by individual employees against decisions made jointly then have only a limited chance of success. For example, a hospital that gave priority to female employees for parking spaces close to the building was able to successfully defend against a lawsuit filed by a male employee. The man considered the preferential treatment of women to be unfair and demanded a gender-neutral allocation policy. His claim was dismissed: Since the “women before men” parking space allocation policy had been agreed upon with the works council, and since women are demonstrably more frequent victims of violent assaults, the clinic was permitted to maintain this allocation process for employee parking spaces (Case No. 10 Sa 314/11). How to Convince the Works Council Suppose a company provides parking spaces for its employees, and the parking situation has progressivelyworsened due to an increase in staff. Now, measures need to be taken to manage the scarce parking spaces efficiently. Here’s how parking managers can get the works council on board: Raise awareness of the problem “Parking spaces are scarce; we have to do something”—a statement like this isn’t enough to convince the works council. If parking managers want to overhaul the company’s parking organization, they must provide the works council withplausible reasons and arguments. They should explain how the parking shortage poses a business problem: Employees are arriving late more frequently, and workplace harmony is at risk due to disputes over parking spots. Statistics on parking space utilization can also serve as a basis for this argument.
Identify and evaluate possible solutions Parking managers should explain that there are various ways to address the issue. One option would be to encourage carpooling or to rent additional parking spaces. Another option is to implement a new parking management system . The potential solutions to the parking problem should also be evaluated, as works councils prioritize long-term effectiveness and a balanced approach. Consulting services for your parking facilities and digitally controlled parking space allocation systems are offered by specialized companies and startups such as ParkHere . Highlight the benefits for employees Parking managers should highlight the benefits of the preferred solutions to the workforce. This is a priority for management and the works council and is a key factor in successful implementation. Therefore, they should, for example, explain the benefits of digital parking management: A digitally controlled parking space allocation system costs less than additional parking space and also guarantees parking spots for more employees—not just those with parking leases. This eliminates the need for waiting lists. In addition, unused parking spaces can be reassigned when employees are on vacation or attending training. Address Potential Concerns Head-On—and Resolve Them In advance, consideration should be given to what concerns the works council might have. Ideally, those responsible for parking management will address these concerns themselves. The issue of fairness in parking space allocation, for example, is important. Does the new parking organization truly benefit all employees, or would managers be given preferential treatment? The issue of data protection also always resonates with the works council: For example, how do parking system providers handle personal data such as scanned license plates? Ultimately, the issue of costs is also decisive: Will the costs for on-site parking remain within reasonable limits after the new system is introduced? The “homework” should be done in advance: This includes reviewing information on the parking system providers’ websites regarding the terms and conditions, as well as conducting employee surveys. How many employees are interested in company parking spaces? What parking rates are acceptable? How much time do employees spend looking for a parking spot in the morning? A confident presentation backed by facts, figures, and data will convince the works council to support the reorganization of parking management.
Conclusion
Company parking lots offer many advantages for both employers and employees. When parking spaces are in short supply, conflicts can arise—depending on the allocation policy. In such cases, it is important to implement remedial measures, such as introducing a digitally controlled parking management system. These measures must then be coordinated with the works council. The purpose of this legal requirement is to ensure equitable distribution. The works council should therefore not be viewed as an adversary when it comes to parking lot organization, but rather as a neutral body that can help make the right decisions and take the interests of both the company and its employees into account equally. The works council will normally have no objections to the introduction of remedial measures such as digital parking management, as long as they are fair, transparent, and socially acceptable. Numerous companies, including major corporations such as Porsche and Telefónica, have already opted for this modern form of parking organization and have had positive experiences with it.
Frequently Asked Questions:
Is an employer required to provide parking spaces?
In general, employers are not required to provide parking spaces. An exception applies if the workplace is practically inaccessible by public transportation. Employees with severe disabilities may also be entitled to an accessible parking space under certain circumstances.
Can an employer charge for parking?
Yes. If an employer provides parking spaces, they may charge a fee for them, regardless of whether the lot is leased or part of the company premises. If the spaces were initially free of charge, the employer must first officially discontinue this practice before introducing fees.
Does the works council have a say in the allocation of parking spaces?
Yes, the works council has the right to participate in decisions regarding the organization of parking space allocation. In addition, the employer must comply with the General Equal Treatment Act (AGG), for example, when selecting the allocation criteria.
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