Employee reps and European Works Councils

In companies with operations in two or more European Union states employing more than 1,000 employees in total (minimum 150 employees in at least two member states), a European Works Council (EWC) must, if requested, be established. The Works Council, once its terms have been successfully negotiated, is designed to provide a forum for informing and consulting employees.

EWC members need not be trade union representatives, although in practice in most large workplaces where there are recognised unions they will nominate candidates for election. The rules for establishing an EWC are set out in the Transnational Information and Consultation of Employees Regulations 1999 and the Transnational Information and Consultation of Employees (Amendment) Regulations 2010.

Companies have to supply information about their structures and organisation where requested. The ECJ, in the case of Betriebsrat v Bofrost C-62/99 ([2001] IRLR 403), held that this is a legal requirement even if it has not, at that stage, been possible to establish whether the company itself is the controlling undertaking.

The Court held that information on company structure is essential to the opening of negotiations on the establishment of an EWC. Where the company headquarters are located outside the EU, the largest employer based in an EU state in the group has to assume responsibility for the provision of information to assist the establishment of the EWC (Gesamtbetriebsrat der Kuhne & Nagel v Kuhne & Nagel ([2004] IRLR 332)).

Where the central management is based in an EU state, a company must supply other undertakings in the same group with information needed for the establishment of an EWC (Betriebsrat der Firma ADS Anker Gmbj v ADS Anker GmbH C-349/01).