7 min read
Last updated
The European Works Council framework covers the 27 European Union Member States and, through the European Economic Area arrangements, Iceland, Liechtenstein and Norway. These 30 countries form the geographical starting point for assessing European Works Council coverage.
The countries represented in a particular European Works Council depend on the organisation’s operations, the applicable rules and its agreement. Representatives from countries outside this area may also participate where the arrangements provide for them.
For an international employer, the assessment therefore has two parts: which countries fall within the legal framework, and which employees are represented under the organisation’s own arrangements.
AT A GLANCE
European Works Council Countries at a Glance
The European Economic Area [EEA] consists of the 27 EU Member States plus Iceland, Liechtenstein and Norway. Switzerland belongs to the European Free Trade Association [EFTA] but is outside the EEA. The United Kingdom is also outside the EU and EEA.
The table distinguishes geographical coverage from participation in a particular council. Coverage does not mean that every organisation in a listed country must establish a European Works Council.
| Country Group | Countries | European Works Council Position |
| EU Member States | Austria, Belgium, Bulgaria, Croatia, Cyprus, Czechia, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain and Sweden. | Within the geographical framework; assess the organisation and applicable rules. |
| EEA EFTA countries | Iceland, Liechtenstein and Norway. | Within the geographical framework through EEA arrangements. |
| United Kingdom | Outside the EU and EEA. | Participation may continue or be provided for under the arrangements; assess legacy obligations. |
| Switzerland | Outside the EU and EEA. | Participation can be provided for by agreement; assess the terms and representative status. |
For the current membership lists, see the European Union country directory and the Council of the EU explanation of the EEA.
Geographical Coverage of any Organisation
The European Works Council is an information and consultation body for transnational matters. Its framework is based on the European Works Council Directive, national implementing legislation and, for the EEA EFTA countries, incorporation through the EEA arrangements.
Country coverage is one part of determining if an undertaking or group falls within the framework.
The general thresholds to establish a European Works Council are at least 1,000 employees within the covered area and at least 150 employees in each of at least two covered countries, with specific provisions for groups of undertakings.
Meeting the thresholds establishes eligibility for the statutory establishment process, however it does not mean that a European Works Council appears automatically.
The setup of a European Works Council can begin on management’s initiative or following a qualifying employee request under the applicable rules.
Countries in the Company’s EWC Agreement
The company’s EWC agreement sets out its coverage and composition within the applicable legal framework. It should identify the establishments or undertakings covered and explain how representation operates.
The list of countries covered by the framework is different from the list of countries where the organisation employs people in the company’s EWC agreement.
A group company operating in six covered countries of the European Works Council Directive will assess representation for those operations; it does not need representatives from all 30 countries simply because they belong to the covered area.
European Works Council vs. Works Councils
European and national employee representation operate at different levels. A European Works Council addresses matters within its transnational remit.
A national Works Council for example a Dutch Works Council [ondernemingsraad, OR], exercises its rights under the Works Councils Act [Wet op de ondernemingsraden, WOR]. Read more in our article: European Works Council Versus Works Council Netherlands.
A proposed cross-border project in an organisation can require European Works Council consultation as well as in-country Works Council consultation. The organisation should identify the proposed decisions, the bodies concerned and the applicable procedures. Coordination allows each body to receive the information needed for its own role in the right sequence.
Reviewing Country Coverage
Step 1: Map Operations and Employee Numbers
Identify the undertakings, establishments and employees in each covered country. Distinguish EU/EEA figures from the group’s worldwide total and apply the prescribed counting rules.
Step 2: Review Company’s EWC Agreement and Governing Law
Check geographical scope, composition and any provisions concerning countries outside the EEA. Identify the management responsible for the process and changes since the agreement was concluded.
Step 3: Assess Representation and Consultation
Compare the company’s EWC agreement with the current organisation. Examine how country representatives are selected and how European consultation connects with national procedures.
Step 4: Check Legislative Changes
At this moment the revised European Works Council Directive amends the EWC framework and contains phased implementation provisions.
Its implications should be reviewed against national implementation dates and, for EEA EFTA countries, the applicable incorporation arrangements.
Frequently Asked Questions
Which Countries Does the European Works Council Framework Cover?
The framework covers the 27 EU Member States and, through the EEA arrangements, Iceland, Liechtenstein and Norway. The countries represented in an individual EWC depend on the organisation’s operations and agreement. UK and Swiss representatives may participate under the applicable arrangements. Read the countries article for the detailed explanation.
Can a Company Headquartered outside Europe Have a European Works Council?
Yes. An undertaking or group company headquartered in the United States, Japan, Australia or another country outside the EEA can fall within the framework because of its operations and employee numbers in the countries covered by the European Works Council Directive.
The European Works Council Directive includes also arrangements for Central Management located outside this covered area.
Are Norway, Iceland and Liechtenstein Covered in the European Works Council Directive?
Yes. These three countries participate in the EEA, and the European Works Council Directive has been incorporated into the EEA Agreement. They should be included in the geographical assessment alongside the EU Member States.
A country list based only on EU membership would therefore omit part of the covered area. An organisation with operations in the Netherlands and Norway should examine both when assessing its workforce and representation arrangements.
The EFTA record for Directive 2009/38/EC identifies its incorporation into the EEA Agreement.
Is the United Kingdom included in European Works Councils?
The United Kingdom is outside the EU and EEA. UK employees are therefore outside the geographical area used for the EU/EEA workforce thresholds.
Participation in an existing European Works Council is a separate question. UK representatives may continue to participate where the council’s arrangements provide for them. UK government guidance on participating in an EWC gives instructions that employees cannot make a new request under the EEA establishment framework, although they can be included as representatives, and legacy arrangements also require attention.
An organisation should review its EWC agreement, its governing law and any continuing UK obligations before changing representation. Brexit should not be treated as an instruction to remove UK members from every European Works Council.
Is Switzerland Covered by the EWC Framework?
Switzerland is outside the EU and EEA. Swiss employees therefore fall outside the geographical area used for the EU/EEA workforce thresholds.
An agreement can provide for participation from outside that area. If Swiss representatives participate, it is important that there is a check on the agreement’s provisions on their status, voting rights, access to information and involvement in consultation.
Swiss headquarters do not, by themselves, remove a group’s potential obligations towards its employees in covered countries. The location of Central Management and the location of employees are separate parts of the assessment.
Support with European Works Council Arrangements
An enquiry to Human in Progress can set out the countries involved, approximate employee numbers, headquarters location and any existing EWC agreement. This provides a basis for discussing support with coverage, representation and consultation preparation.
Contact Human in Progress for a free consultation to discuss the organisation’s situation and the scope of support required.
