European works councils to inform and consult workers in large companies

Automatic summary, not yet reviewed

1. Companies or groups with at least 1,000 workers in the European Union or the European Economic Area, spread over at least two States with 150 or more in each, must set up a European works council or an alternative information and consultation procedure.
2. The process starts when the central management decides so, or when at least 100 workers or their representatives, from at least two workplaces or companies in different States, request it in writing. Central management can only refuse in the specific cases listed by the law.
3. A negotiating body, made up of worker representatives from each affected State, negotiates with central management an agreement creating the works council or an alternative procedure. That agreement binds all workplaces and companies within its scope and must be put in writing and filed with the labor authority.
4. If there is no agreement within three years, central management refuses to open talks within six months, or acts in bad faith as declared by a final court ruling, fallback rules directly create the European works council. This council is entitled to an annual meeting with management and to be informed and consulted on decisions affecting workers, such as transfers, closures or collective layoffs.
5. Members of the negotiating body and the council have the same protection and guarantees as national worker representatives, 60 paid hours per year for their duties, and a duty to keep confidential information secret. Blocking the negotiation or the operation of these bodies is a very serious offense, and penalties follow the law on social order infractions.
6. Disputes go to the social jurisdiction courts, and the parties may also use out-of-court dispute resolution. Agreements already in force on September 22, 1996 covering transnational information and consultation are outside the law until they expire.

Who it affects

• Large companies and groups with central management in Spain and 1,000 or more workers in several European States: They must drive the creation of a European works council or an alternative procedure and pay its expenses.
• Workers of those companies and groups: They can request the start of the process in writing and receive information and consultation through their representatives.
• Worker representatives (works councils, staff delegates and unions): They form the negotiating body and the European works council, with guarantees, paid leave and 60 hours a year for their duties.
• Workplaces in Spain of European companies with central management in another State: Spanish rules on headcount calculation, designation of representatives and effect of agreements apply to them.

Words worth knowing

Comité de empresa europeo (European works council)

A body of worker representatives from the whole company or group across several European countries, which receives information and is consulted.

Dirección central (central management)

The body that runs the company or group overall; if it is outside Europe, its representative or the management of the workplace with the most workers.

Empresa que ejerce el control (controlling company)

The company that dominates others through its capital, its votes or its power to appoint their managers; it defines what counts as a group of companies.

Disposiciones subsidiarias (fallback rules)

Rules that apply directly, without negotiation, when no agreement is reached to create the works council.

Dimensión comunitaria (Community-wide scale)

The status of a large company or group operating in several States of the European Union or the European Economic Area.

It summarizes the law as published in the BOE. It is written by artificial intelligence and may contain mistakes: the official text is what counts. Read the official text · How we make summaries