The European Parliament and the EU member states have reached a political agreement on the revised European Works Council Directive, which aims to strengthen social dialogue in the EU. Currently, the European Works Council rules apply to companies employing at least 1,000 employees in EU member states and at least 150 employees in at least two member states.
Further on, the European Parliament and the Council must formally adopt the political agreement. Member States will then have two years from the publication of the revised directive in the Official Journal to implement the legislation. The new rules will apply one year from that date.
The amendments/additions to the Directive include:
- Timely and meaningful consultation of employees: European Works Council members must receive a substantiated response before the company takes decisions on cross-border matters;
- Increasing capacity to deliver: European Works Council agreements should specify financial and material resources, including budget, expert support and training;
- Clear definition of cross-border matters: the revised Directive clarifies when a subject qualifies as “cross-border”, including indirect effects on workers in other Member States;
- Better gender balance: When forming European Works Councils or special negotiating bodies, parties should aim for at least 40 per cent representation of each gender.
- Tougher penalties: Member States will be obliged to regulate penalties that take account of annual turnover or have a similar dissuasive effect.