On 30 March 1946, the Allied Control Council passed Law No. 21 that established labour courts to resolve labour disputes in Germany.

The Allied Control Council was the governing body in the occupation zones in Germany after the end of World War II. The German authorities were stripped of their powers and replaced by the Allied Control Council, which brought together representatives of the USSR, USA, Great Britain, and France. (The Allied Council consisted of the commanders-in-chief in their respective occupation zones in Germany: Marshal Georgy Zhukov – Soviet Union, General of the Army Dwight Eisenhower – United States, Field Marshal Bernard Montgomery – United Kingdom, and General Jean de Lattre de Tassigny – France). The council’s decisions concerning Germany were taken unanimously. In doing so, each side retained full responsibility for the administration of its zone of occupation.

The transfer of labour disputes to the national courts was one of the first steps towards re-establishing Germany's sovereign authorities.

By 1948, more than 80 meetings of the Allied Control Council had taken place. Subsequently, the deterioration of relations between the USSR and Western Allies stalled the council’s effectiveness. The Allies jointly monitored flight safety and guarded Spandau Prison for war criminals. The Allied Control Council was only formally dissolved on 15 March 1991, six months after the reunification of Germany.