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An AI project introduced across several countries can affect employees beyond one national operation. A European Works Council (EWC) may therefore have information and consultation rights concerning these transnational decision. Works Councils and other employee representatives in EU countries may have separate rights over its local implementation.
This article explains the EU AI Act, rights of the European Works Council and actions regarding consultation.
AT A GLANCE
The EU AI Act
The AI Act Regulation (EU) 2024/1689 aims to support the use of Artificial Intelligence while protecting health, safety and fundamental rights. It regulates AI systems and establishes separate obligations for providers of general purpose AI models.
The EU AI Act applies to organisations that develop, supply or use AI systems within its scope. This includes:
- Providers: organisations that develop an AI system, or have one developed, and make it available under their own name. For example, a software company offering an AI recruitment tool to employers in the EU.
- Deployers: organisations that use an AI system in their professional activities. For example, an employer using that recruitment tool to assess job applications.
- Importers and distributors: organisations that bring AI systems from outside the EU onto the EU market or supply them within the EU.
Rights of the European Works Council
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Right to Information
Management must give the EWC the information it needs to understand a transnational matter and assess its impact on employees. This could concern a restructuring, merger or planned closure with consequences across countries. The information must be provided early enough, and with enough detail, for employee representatives to prepare for consultation. Simply announcing a decision does not fulfil this purpose.
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Right to Consultation
The EWC must have an opportunity to discuss the proposal with management and give its opinion while that opinion can still influence the decision. Consultation allows the EWC to:
- Ask questions about the proposal.
- Raise concerns about its consequences for employees.
- Suggest alternatives or measures to reduce the impact.
The 2025, amendment of the European Works Council Directive, strengthens this process: management must consider the EWC’s opinion and respond in writing before taking the decision.
AI Focus Areas for EWCs
Under Article 26(7) of the EU AI Act, employers must inform employee representatives and workers before putting a high-risk AI system into use in the workplace.
The EWCs and national Works Councils (such as the Works Councils in the Netherlands) hold rights to receive information and be consulted before major technological changes or automation projects will be implemented. The core focus areas regarding AI for the European Works Council are:
Focus 1. Workplace Surveillance & Privacy
Ensuring AI algorithms do not unfairly track pace, route calls, or micromanage workers in violation of GDPR and local privacy laws.
Focus 2. Impact Assessments
Demanding algorithmic and organisational impact assessments before deployment to evaluate risks to job security, health, and working conditions.
Focus 3. AI Literacy & Training
Advocating for mandatory employee training policies in order for employees to understand how AI decisions are made and how to work alongside automated systems.
Focus 4. Transnational Governance
Using the EWC structures to establish company-wide or group-wide framework agreements rather than negotiating fragmented, tool-by-tool rules across different EU Member States.
Current EU AI Rules and Future Legislative Changes
From August 2, 2026, relevant transparency requirements apply. For example, applicants and employees interacting with an AI chatbot must generally be informed that they are interacting with AI, unless this is obvious. These transparency requirements are separate from the obligations for high-risk employment AI.
High-Risk Employment AI Requirements December 2, 2027
A separate development in 2026 concerns the timetable for high-risk AI. The 2026 AI Omnibus amendment moved the application date for relevant Annex III high-risk systems to December 2, 2027. The amendment entered into force on July 27, 2026.
Employers using these systems will need to address applicable requirements concerning human oversight, monitoring, record keeping and information provided to affected employees and their representatives.
What Makes an AI Decision Transnational
The European Works Council is governed by the EU EWC Directive and applies to companies with at least 1,000 employees across EU member states and at least 150 employees in each of two or more member states.
It operates at the transnational level, meaning the European Works Council only deals with matters that affect employees across multiple countries.
What makes an AI decision transnational is for example when a group company proposes a common AI recruitment platform for operations in the Netherlands, Germany and France. This group proposed decision may require EWC consultation. Changes to recruitment arrangements and employee data processing may also trigger national (Works Council) procedures.
Actions Management: Preparing Consultation on AI
When an AI project requires European Works Council involvement, central management and HR should prepare the information and consultation process before implementation. The following steps support to explain the proposed decision and coordinate EWC involvement with any national employee representation procedures.
Step 1. Explain the Proposed European Decision on AI
Central management should explain to the European Works Council why the group proposes to introduce AI, which countries and employee groups will be affected, and the expected consequences for employees.
The information should include:
- The business purpose and proposed implementation timetable.
- Expected changes to jobs, staffing, working methods and employee monitoring.
- Responsibilities of headquarters, suppliers and local management.
- Decisions proposed at group level and matters to be decided locally.
Step 2. Coordinate European Works Council Consultation and Local Works Council Consultation
Central management and local HR teams should identify which matters require EWC consultation and which require involvement of national Works Council consultation.
A favourable EWC opinion does not replace any consent required from a national Works Council. Equally, completing a national procedure does not fulfil the EWC consultation requirements.
Step 3. Establish the Consultation Timetable Before Implementation
Before setting the rollout date, central management and HR should map the proposed group and local decisions, identify the employee representative bodies involved, and establish the applicable procedures.
A Practical Example: AI and European Works Council Consultation
A multinational proposes AI task allocation across customer service centres in several countries. The system would assign cases to employees and use individual performance data to determine those assignments.
The EWC considers the proposed cross-border operating model and its consequences for employees. Local Works Councils per country may separately consider changes to working arrangements, employee monitoring and training under their national rules.
Central management and local HR should coordinate these discussions while the proposed decisions can still be influenced by the Works Council.
Revised European Works Council Directive
The revised rules for the European Works Council, clarify matters affecting employees across countries, strengthen consultation and access to legal remedies, and address confidentiality and gender balance.
Under the revised consultation rules, Central Management must consider the EWC’s opinion and respond in writing before making a decision on a transnational matter. More information can be found in our article regarding the Revised European Works Councils (EWC) Directive.
Member States must adopt and publish national implementing measures by January 1, 2028, and others by 2029,
Frequently Asked Questions
Does AI Automatically Trigger European Works Council Consultation?
No. European Works Council involvement depends on whether the proposed AI decision is a transnational matter covered by the applicable law and EWC agreement.
Does the European Works Council Approve every Local AI Tool?
No. The European Works Council has information and consultation rights on matters within its remit. Local AI decisions may require separate involvement of national Works Councils and employee representatives.
Does the AI Act Replace the European Works Council Consultation Procedure?
No. Relevant information duties under the AI Act apply alongside existing European Works Council information and consultation requirements.
AI and the Future of Work
AI is changing how international organisations allocate tasks, organise work and plan their staffing needs across Europe. For Central Management and the European Works Council (EWC), understanding these changes requires examination. They will have to put AI and the Future of Work on to the agenda and assess how expected group company efficiencies with AI translate into daily operations and what they mean for employees in the countries concerned.
