Strengthening representation of EU workers in multinational companies
The Council and the European Parliament have reached a provisional agreement on a new revising directive that seeks to make the representation of workers in large multinational companies more effective.
This revision will amend the existing directive on European works councils (EWCs), making them easier to set up, better funded and better protected.
European works councils play a vital role in ensuring that employees of large, multinational companies are informed and consulted on transnational issues that affect them. By improving the process of consultation, the resources made available to European works councils and their access to justice, the agreement reached today between the Council and the Parliament addresses the weaknesses of the 2009 directive and further strengthens the representation of workers.
Agnieszka Dziemianowicz-Bąk, Polish Minister for Family, Labour, and Social Policy
The new directive seeks to make the law governing EWCs clearer, more effective and easier to enforce. The main elements of the Council’s agreement with the Parliament include:
transnational matters: the scope of transnational matters has been clarified to ensure that decisions substantially affecting workers in more than one member state trigger an obligation to inform and consult an EWC, without this being extended to day-to-day decisions or issues that only affect employees in a trivial way
gender representation: the Council and the Parliament agreed to aim for more balanced gender representation on EWCs
confidentiality: information can only be required to be withheld or treated as confidential if objective criteria are satisfied and for as long as the reasons justifying these limitations persist
access to justice: the new deal strengthens provisions on access to judicial proceedings and (where relevant) administrative proceedings, including by ensuring that costs relating to legal representation and participation are covered
penalties: in the event that a company fails to comply with the rules set out in the directive, the financial penalties imposed should be sufficiently dissuasive, while also taking into account different factors such as the gravity, duration, consequences, and intentional or negligent nature of the offence
Next steps
The provisional agreement reached today needs to be confirmed by member-state ambassadors. The new rules will then be adopted following legal-linguistic revision, and member states shall transpose the provisions of the directive into national law within two years of its entry into force. They shall apply the provisions of the directive at the latest three years after its entry into force.
Background
EWCs are information and consultation bodies that represent European workers in multinational companies with more than 1 000 employees operating in at least two EU or European Economic Area (EEA) countries.
On 24 January 2024 the Commission presented a proposal for a directive amending Directive 2009/38/EC as regards the establishment and functioning of EWCs and the effective enforcement of transnational information and consultation rights. The aim of the directive is to tackle shortcomings in the existing legislation on EWCs with a view to improving the effectiveness of the framework for the information and consultation of employees at transnational level.
The Council agreed its mandate for negotiations with the Parliament on 20 June 2024. Negotiations began on 6 February 2025 and conclude with this agreement.
