New Directive On European Works Councils

Directive (EU) 2025/2450¹ initiated by the EU Commission (the Directive) has amended Directive 2009/38/EC relating to European Works Councils (EWCs).² It aims to improve the effectiveness of transnational social dialogue (dialogue between workers and management) by simplifying the creation and functioning of EWCs, clarifying the rules relating to information and consultation, and strengthening employee rights.

1. What are European Works Councils?

EWCs are information and consultation bodies representing employees in multinationals with more than 1,000 employees in the EU (including Iceland, Liechtenstein and Norway).

They cover transnational matters, complement national representative bodies and ensure that employees are informed and consulted about significant European decisions affecting employment or working conditions.

2. Main changes introduced by the Directive

• Simplifying the creation of EWCs: the Directive facilitates the setting up of EWCs by removing the exemptions. Employees with transnational information and consultation agreements pre-dating the implementation of Directive 94/45/EC³  (that is, entered into before 23 September 1996) or with agreements signed or revised between 5 June 2009 and 5 June 2011 will now be able to choose to retain their agreements or request that an EWC is established. According to the EU Commission, this measure should extend the right to request the creation of an EWC to 5.4 million employees in 320 multinationals.⁴
• Clearer definition of "transnational matters": according to the Directive, only transnational matters affecting employees in a substantial manner are within the competence of EWCs. To reduce the risk of uncertainty about whether a matter is transnational and the risk of related legal disputes, the Directive introduces a presumption of transnationality in the following situations:
  • the measures considered by management can reasonably be expected to affect workers in more than one Member State;
  • the measures considered by management can reasonably be expected to affect workers in one single Member State, and workers in another Member State can reasonably be expected to be affected by the consequences of those measures.
• Relevant information and consultation of employees in a timely manner: the Directive states that the information and consultation procedure for employees within the EWC framework is limited to transnational matters. The information must be provided at such time, in such fashion and with such content as are appropriate to enable an in-depth assessment of their possible impact and, where appropriate, to prepare for the consultation procedure.

The Directive adds that undertakings must consult EWCs in good time, i.e. before any decision is taken. In particular, the consultation must permit the employees' representatives to express an opinion before the decision is adopted. The undertaking's central management must provide a reasoned written response to this opinion before taking the decision.

• Clarification of exceptions to the transmission of information: the central management may only refuse to transmit information to the members of EWCs, special negotiating bodies or the employees' representatives in situations where the transmission would seriously harm the functioning of the undertakings concerned. In such cases, it must provide a reasoned justification for its decision.
• Improved access to remedies and strengthening of sanctions: the Directive facilitates access to judicial proceedings for EWCs so that they can enforce their rights. It also reinforces the sanctions for breaches. Member States must consider the gravity, duration, consequences and the intentional or negligent nature of the offence, and in respect of pecuniary sanctions, the size and financial situation of the undertaking or group (such as its annual turnover), and any other relevant criteria.
• Gender balance: the Directive provides for a better gender balance within special negotiating bodies and EWCs, with a goal of 40% of seats for each gender respectively on special negotiating bodies, EWCs and select committees, where appropriate. A written explanation must be provided to the employees if this goal is not achieved.
• Negotiations and content of agreements: to encourage the conclusion of an agreement, the Directive requires the central management to convene a "sufficient number" of negotiating meetings with the special negotiating body.

An EWC agreement must specify the financial and material resources that will be allocated to the EWC to cover, notably, the use of experts, including legal experts, and the provision of training to EWC members. The agreement must also indicate the format of meetings (in person, by video call etc.) and the arrangements for implementation, duration, amendment and, where necessary, renegotiation of the agreement.

3. Next steps

The Directive enters into force on 31 December 2025.

Member States have two years to implement the Directive into national law (that is, until 1 January 2028) and must start to apply it after three years, that is, from 2 January 2029. However, certain provisions will start to apply sooner, from 2 January 2028.

Agreements entered into before 2 January 2029 that are no longer compliant with the new requirements in the Directive may be amended after 1 January 2028:

• at the written request of at least 100 employees or their representatives in at least two undertakings or establishments in at least two different Member States; or
• on the initiative of the central management.

Footnotes

1. Directive (EU) 2025/2450 of the European Parliament and of the Council of 26 November 2025 amending Directive 2009/38/EC as regards the establishment of European Works Councils and the effective enforcement of transnational information and consultation rights.

2. Directive 2009/38/EC of the European Parliament and of the Council of 6 May 2009 on the establishment of a European Works Council or a procedure in Community-scale undertakings and Community-scale groups of undertakings for the purposes of informing and consulting employees (Recast).

3. Council Directive 94/45/EC of 22 September 1994 on the establishment of a European Works Council or a procedure in Community-scale undertakings and Community-scale groups of undertakings for the purposes of informing and consulting employees.

4.  https://ec.europa.eu/commission/presscorner/detail/en/ip_24_147

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.