The European Works Council (EWC) is an information and consultation body representing employees in a European multinational company, with more than 1000 employees, operating in the EU or EEA countries, with at least 150 employees in each of at least two Member States.
The EWC has the Right to Information and the Right to Consultation, and is established under Directive 2009/38/EC. EWCs serve as transnational bodies that facilitate the information and consultation of employees on significant business decisions that affect employees in multiple countries.
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What Is the European Works Council?
The European Works Council represents employees of a multinational company, and is informed and consulted on business decisions, that may affect the employment or working conditions of employees in the European Union (EU) and in the European Economic Area (EEA).
EWC is an acronym of the European Works Council, an information and consultation body representing employees in European companies.
European Works Council Requirements
The EWC was established as a result of the economic and political integration of the European Union in multinational company affairs. As companies become transnational, local councils lacked a direct connection to the level on which the real decisions are taken.
A company is required to establish an EWC when it qualifies as a community-scale undertaking or group of undertakings, meaning it has:
- 1,000 employees or more within the Member States of the European Union (EU) or the European Economic Area (EEA).
- 150 employees or more in each of at least two different Member States.
- Transnational issues that affect employees in more than one country.
The Role of the European Works Council
Members of an EWC are national representatives elected by employees in the various countries where the multinational company has operations.
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Representative of Employees
The EWC acts as a voice for employees at the European level, safeguarding employee’s collective interest when decisions have cross-border effect, ensuring concerns are heard by the company’s central management.
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Partner in Dialogue
The European Works Council is a counterpart to management in transnational matters. There is a two-way exchange of opinions and ideas between management and the representatives, leading to better-informed decisions.
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Right-Based Partner
The EWC is a channel for information and consultation between company management and employee representatives regarding transnational decisions that affect employment or working conditions. They hold legally anchored rights such as the Right to Information and the Right to Consultation.
The EWC must be informed and consulted on matters such as company structure, economic situation, probable development, employment trends, and significant organisational changes (e.g., relocations, closures, redundancies).
European Works Council representatives are entitled to resources, training, and protection against dismissal or discrimination.
European Works Council Directive 2009
The European Works Council Directive 2009 ensures employees of community-scale undertakings are informed and consulted when decisions affecting them are made in a member state other than that which they are employed.
The adoption of the revised 1994 directive came in force in 2009, after a discussion to give councils additional rights.
In the end, European Works Council Directive 2009 included essential changes regarding the definitions of consultation, information and transnational issues including the right to train employee representatives.
Purpose of the EWC Directive
The purpose of the European Works Council Directive 2009 is to establish the right of employees in multinational companies operating in the EU and EEA to be informed and consulted at transnational level through an EWC.
Law Enforcement
Member States of the European Union (EU) must provide legal frameworks and sanctions for non-compliance. This means, that there should be national laws that explain how the EWC directive will work in practice within that country.
In essence, the EWC Directive guarantees employees in multinationals a structured way to be informed and consulted on cross-border company decisions.
New European Works Council Directive December 31, 2025
The Council and the European Parliament have reached a in May 2025 a provisional agreement for a revised EWC Directive. The agreements aim to make the European Works Council more effective, accessible, and enforceable, addressing shortcomings in the current framework.
The Directive enters into force on December 31, 2025. Member states will have two years to transpose this into national law, with complete application within three years.
1. Clarity on Transnational Scope
The definition of “transnational matters” has been redefined to: “Decisions with substantial impact across multiple Member States”.
2. Gender Balance Goals
The agreement introduces a commitment to more balanced gender representation within EWCs, aligning with broader EU diversity and inclusion goals. This should result in at least 40% of woman acting as EWC members.
3. Access to Legal Procedures
The new deal makes it easier for EWCs to take part in court or administrative proceedings. It guarantees coverage of the costs related to legal support and participation in such actions.
4. Penalties Non Compliance
In addition, if a company breaks the rules in the directive, it can face financial penalties. These penalties should be strong to discourage violations and will consider factors such as how serious and long-lasting the offence is, impact, and whether it was intentional or accidental.
In Summary
- The European Works Council (EWC) is an information and consultation body representing employees in multinational companies.
- The European Works Council Directive applies to:
o Companies with 1,000+ employees in the EU/EEA.
o With at least 150 employees in two or more different Member States. - Scope: Covers transnational matters that affect employees in two or more EU/EEA countries.
- Purpose: The EWC is representing employees at European level by ensuring timely information and consultation on strategic decisions.
- Legislation: European Works Council Directive 2009/38/EC.
More Information
- Understanding European Works Council Consultation.
- EU Law: Frequently Asked Questions European Union Law.
- What Is a Works Council Netherlands Under Dutch Law?
