Planned changes to the law governing European Works Councils (EWCs) took another step forward last month, when the Council of the European Union and the European Parliament reached a provisional agreement. The changes are designed to make EWCs easier to set up and provide better funding and protection.

They include:

  • Confirmation that companies must inform and consult their European Works Council (EWC) on decisions that significantly affect workers in more than one EU Member State. This doesn’t apply to day-to-day decisions or minor matters.
  • A more balanced representation of women and men within the EWCs
  • A clear requirement for companies to justify confidentiality.
  • Greater financial responsibility for companies to support EWC operations, for example, with legal costs.
  • Tougher penalties for companies that break the rules.