BRUSSELS — The European Union moved closer to reforming how multinational companies engage with employees on cross-border decisions after negotiators from the Council and European Parliament reached a provisional agreement Tuesday to revise the directive governing European Works Councils.
The updated directive aims to make it easier to set up and enforce the rights of European Works Councils (EWCs), which represent employees in companies with more than 1,000 workers operating in at least two EU or European Economic Area countries.
“European works councils play a vital role in ensuring that employees of large, multinational companies are informed and consulted on transnational issues that affect them,” said Agnieszka Dziemianowicz-Bąk, Poland’s Minister for Family, Labour and Social Policy. “This agreement addresses the weaknesses of the 2009 directive and further strengthens the representation of workers.”
The revised law clarifies what qualifies as a “transnational matter,” stipulating that companies must consult EWCs on decisions that substantially affect employees in more than one member state. Day-to-day or minor workplace issues are excluded.
The agreement also introduces stronger legal safeguards for workers’ representatives. It guarantees access to courts and legal representation in disputes over consultation rights, with costs to be covered by the company, and mandates that penalties for non-compliance be “sufficiently dissuasive.”
Gender balance will also be promoted under the new rules, with the EU institutions agreeing to aim for more equal gender representation on EWCs.
The deal tightens confidentiality rules by requiring objective justification for withholding information and setting limits on how long such restrictions can last.
“The law will now be clearer, more effective, and easier to enforce,” the Council said in a statement.
The agreement must now be formally approved by ambassadors of EU member states. Once adopted, countries will have two years to transpose the new directive into national law and three years to begin applying it.
The update follows criticism that the 2009 directive left too much discretion to companies and failed to ensure meaningful consultation on key decisions such as mergers, restructuring, or large-scale layoffs.
The Commission presented the reform proposal in January 2024. Talks with the Parliament began in February 2025 and concluded with Tuesday’s deal.
Editor: Gabriel Ani
