European Works Councils Act amended

12-22-2011

The Amendment to the European Works Councils Act entered into force on 15 November 2011. This amendment was sparked by changes to the EWC Directive. 

As a result of the amendment, the European Works Councils Act (WEOR) details that a European Works Council (EWC) must be informed and consulted in good time. Important in that respect is that the process of information and consultation must be organised such that the relevant decision can still be influenced in practice. Also new is that a new EWC agreement must be renegotiated in the event of extensive changes in the business structure, such as mergers, demergers or takeovers, even if no relevant arrangements have been agreed between the parties involved..

These are a few of the changes ensuing from the amended European EWC Directive from 2009, also known as the Recast Directive. The first EWC Directive, established in 1994, was implemented in the Netherlands by means of the WEOR. Since 1997, the WEOR has applied to enterprises with at least 1,000 employees, 150 of whom are employed in at least two other European Member States. The WEOR enables employees with large Dutch multi-national companies to conclude an agreement with their management regarding the establishment and functioning of a EWC. The EWC is informed and consulted by the management on cross-border subjects. Partly to promote the effectiveness of those information and consultation rights, the Recast Directive was adopted in 2009. That directive has now been implemented in the European Works Councils Act.  

For more information please contact Martijn Burgers, Practice area Employment.