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Legal Terms - European Works Council (EWC)
In multinational corporations within the European Economic Area (EEA), a council with members from both employees and management is constituted at the European level to inform and consult employees on transnational matters. The establishment of such councils stemmed from the European Works Council Directive of 1994, subsequently amended by Directive 2009/38. The directives pertain to enterprises or collectives with a minimum of 1,000 employees throughout EEA member states and at least 150 employees in two or more of those states. The 1994 Directive was enacted in the UK via the Transnational Information and Consultation of Employees Regulations 1999, and the revised Directive was implemented by the Transnational Information and Consultation of Employees (Amendment) Regulations 2010, which became effective in 2011.
The Regulations delineate methods for creating an EWC agreement, enforcement mechanisms, and statutory safeguards for employees who are members of such a group while claiming their rights or fulfilling duties under the Regulations. Following the UK's departure from the EU, the Regulations will remain applicable to those European Works Councils constituted prior to 1 January 2021. Nonetheless, the foundation for such an EWC must be transferred to another EEA member state. The provisions in the UK Regulations for the establishment of new European Works Councils have been removed.
In multinational corporations within the European Economic Area (EEA), a council with members from both employees and management is constituted at the European level to inform and consult employees on transnational matters. The establishment of such councils stemmed from the European Works Council Directive of 1994, subsequently amended by Directive 2009/38. The directives pertain to enterprises or collectives with a minimum of 1,000 employees throughout EEA member states and at least 150 employees in two or more of those states. The 1994 Directive was enacted in the UK via the Transnational Information and Consultation of Employees Regulations 1999, and the revised Directive was implemented by the Transnational Information and Consultation of Employees (Amendment) Regulations 2010, which became effective in 2011.
The Regulations delineate methods for creating an EWC agreement, enforcement mechanisms, and statutory safeguards for employees who are members of such a group while claiming their rights or fulfilling duties under the Regulations. Following the UK's departure from the EU, the Regulations will remain applicable to those European Works Councils constituted prior to 1 January 2021. Nonetheless, the foundation for such an EWC must be transferred to another EEA member state. The provisions in the UK Regulations for the establishment of new European Works Councils have been removed.
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