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Virtual participation programs have long been highly popular, particularly in the venture capital and technology sectors, where limited financial resources meet strong competition for highly skilled talent. Against this background, companies frequently implement comprehensive employee participation programs to retain key personnel or to attract them in the first place. The Federal Labour Court’s (Bundesarbeitsgericht – BAG) revised legal interpretation, reflected in its decision of 19 March 2025, makes it necessary to fundamentally rethink the set-up of virtual participation programs. This article outlines the implications of the decision and highlights practical consequences for employers.