May 21, 2025 – Brussels – In a significant step forward for workers’ rights across the European Union, the Council of the EU and the European Parliament have reached a provisional agreement on the revision of the European Works Councils (EWC) Directive . The updated legislation aims to enhance the effectiveness, transparency, and enforceability of transnational employee representation in large multinational companies operating within the EU.
The agreement marks a major milestone in efforts to modernize labor protections and ensure that workers are adequately informed and consulted on decisions that affect their livelihoods across borders.
A Stronger Voice for Workers
At the heart of the new directive is a commitment to strengthening the role of European Works Councils (EWCs) — bodies established to facilitate communication between management and employees in large companies with operations in multiple EU or EEA countries. These councils play a crucial role in ensuring that transnational decisions — such as restructurings, plant closures, or changes in employment conditions — are discussed transparently and involve the perspectives of the workforce.
Agnieszka Dziemianowicz-Bąk, Polish Minister for Family, Labour, and Social Policy, emphasized the importance of this reform:
“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 addresses the weaknesses of the 2009 directive and further strengthens the representation of workers.”
Key Provisions of the Revised Directive
The revised directive introduces several important improvements designed to make EWCs more effective and resilient:
- Clarity on Transnational Matters : The scope of what constitutes a “transnational matter” has been clarified. Decisions that significantly impact workers in more than one EU country will now clearly fall under the purview of EWCs, without extending the requirement to trivial or day-to-day operational issues.
- Promotion of Gender Balance : Both institutions agreed to encourage more balanced gender representation on EWCs, reflecting broader EU goals of equality and inclusivity in decision-making processes.
- Confidentiality Safeguards : While recognizing the need for confidentiality in certain business contexts, the directive ensures that information can only be classified as confidential when justified by objective criteria, and only for as long as those justifications remain valid.
- Improved Access to Justice : Employees and their representatives will enjoy stronger legal protections. The directive enhances access to judicial and administrative proceedings, including financial support for legal representation and participation in relevant cases.
- Dissuasive Penalties for Non-Compliance : To ensure compliance, the directive mandates proportionate but dissuasive financial penalties for companies that fail to meet their obligations. Factors such as the severity, duration, and intent behind violations will be considered when determining sanctions.
The provisional agreement must now be formally confirmed by the Permanent Representatives of the EU member states (Coreper). Once confirmed, the text will undergo a legal-linguistic review before being adopted by both the Council and the European Parliament.
Member states will then have two years from the directive’s entry into force to transpose its provisions into national law and three years to fully implement them.
Currently, EWCs operate under the framework of Directive 2009/38/EC , which applies to companies employing at least 1,000 workers across two or more EU or EEA countries. While this directive laid the foundation for cross-border worker representation, it has faced criticism over the years for lacking clarity and enforcement mechanisms.
The European Commission proposed an amendment to the directive on 24 January 2024 , aiming to address these shortcomings and improve the functioning of EWCs. Negotiations between the Council and the Parliament began on 6 February 2025 , culminating in today’s agreement.
This legislative update reflects the EU’s ongoing commitment to social dialogue, fair working conditions, and the protection of fundamental rights in an increasingly globalized economy.
The Council and the European Parliament have reached a provisional agreement on a revising directive that seeks to make the representation of workers in large multinational companies more effective.
We acknowledge The European Times for the information.
