Deepfakes—deceptively realistic image, video, and audio content generated by artificial intelligence (AI)—are no longer a marginal phenomenon. Those affected are not only public figures but also increasingly private individuals, predominantly women. Beyond the currently debated classification under German criminal law, the phenomenon also merits examination from an employment law perspective, as the misuse of AI does not stop at the factory gates.

Quick Hits

• Under Section 241 (2) of the German Civil Code (Bürgerliches Gesetzbuch (BGB)), the employer is obligated to respond promptly upon becoming aware of deepfake incidents in the workplace; failure to do so may expose the employer to substantial claims for damages and compensation for pain and suffering.
• The creation and distribution of deepfakes with sexual or degrading content constitutes a serious breach of the duty of mutual consideration, which may regularly justify extraordinary termination pursuant to Section 626 (1) BGB.

In the workplace context, various scenarios are conceivable: the creation of deepfakes with sexual or degrading content depicting colleagues (whether using company or private IT infrastructure), deepfakes targeting supervisors to damage their reputation, and the use of deepfakes to manipulate business operations—for example, through forged instructions in audio or video form.

For those affected, such content can have severe personal and professional consequences—ranging from psychological...

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