Staff representation
As an employer with employees in two or more countries, it’s essential to understand different employee representation structures as well as your obligations to inform and consult staff.
Whether through a European works council or a Societas Europaea structure, you must ensure that your employees are informed, consulted, and involved in decisions that affect them across borders.
European works council (EWC)
If your company has:
- at least 1,000 employees across the EU, and
- at least 150 employees in at least two different EU countries,
- and at least 100 employees from two or more countries request you to do so,
you must establish a European works council (EWC). You may also do so on your own initiative.
A European works council (EWC) is typically composed of employee representatives from all the EU countries where your company operates, and it provides a forum for employees to be informed and consulted at European level about decisions that affect them collectively across borders.
As an employer, depending on the EWC agreement in your company, you must inform and consult the EWC before decisions are implemented on transnational matters. For example:
- major company-wide restructurings or cross-border operations
- relocations or closures of businesses affecting multiple EU countries
- large-scale job cuts, redundancies, or significant changes to employment conditions in several countries
- strategic decisions, such as changes in production methods or business models that impact employees in more than one EU country.
This means:
- providing timely and detailed information about measures proposed by the management so the EWC can discuss and understand the potential impact on employees,
- allowing the EWC to express its opinion on these matters, so that employee representatives can offer suggestions, raise concerns, or propose alternatives.
Employee representation in European Companies (Societas Europaea - SE)
If your company is set up as a European Company (Societas Europaea - SE), employee representation takes on a more formal, Europe-wide structure. Key things to know:
- Employee representation: In an SE, employees may be involved in company decisions through board-level representation. This means employees can have a say on the company’s supervisory or administrative board, depending on the country’s rules and the company’s size.
- Negotiation process: Before setting up an SE, you’ll need to negotiate with employee representatives to determine the level of involvement.
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