News

A new era for European Works Councils – what employers must do now

08 September 2025

News

A new era for European Works Councils – what employers must do now

Chapter
Chapter 1
Political agreement on new EWC Directive – May 2025 Check this option
Chapter 2
Key changes at a glance Check this option
Chapter 3
Timeline – what to expect Check this option
Chapter 4
What should employers do now? Check this option
Chapter 5
How Hogan Lovells can help Check this option

At Hogan Lovells, we had the privilege of litigating and advising on the first Dutch case to address the interplay between national and European Works Council (EWC) consultation procedures. In this landmark matter, decided by the Rotterdam District Court in late 2018, the question was whether national and EWC consultation procedures must follow a strict sequence, or may proceed in parallel.

The court held that both procedures may proceed simultaneously, provided they are timely and meaningful, a unique ruling that confirmed this approach is consistent with the EWC Directive. The Rotterdam ruling was also referenced by the European Commission when further shaping the concept of “transnational matters” in the pending legislative proposals. This decision remains a critical precedent for multinationals navigating complex restructuring processes across jurisdictions.

For those interested, the judgment is available here.

As part of our regular practice, we frequently advise multinational clients on their obligations under the Dutch European Works Council Act (Wet op de Europese Ondernemingsraden: WEOR). Whether supporting negotiations, reviewing “Europe agreements,” or guiding transnational processes, we help clients navigate key issues such as:

What qualifies as a transnational matter;
How to coordinate national and European consultation;
And how to ensure a meaningful dialogue with EWCs.

Until now, many of these questions operated in a grey legal area. But with the EU’s new legislative developments, that uncertainty may finally be coming to an end.

Chapter 1 Political agreement on new EWC Directive – May 2025

On 28 May 2025, the European Parliament, Council, and Commission reached a political agreement on a sweeping revision of Directive 2009/38/EC. The revised Directive introduces stricter employer obligations and significantly enhances the enforceability of EWC rights.

Formal adoption is expected later this year. Member States will be required to transpose the Directive into national law, likely by late 2027, with employer compliance required by late 2028.

Chapter 2 Key changes at a glance

Expanded scope of “transnational matters”

A matter is considered “transnational” not only if it directly affects employees in multiple Member States, but also if it can reasonably be expected to have cross-border consequences, even indirectly.

Employers must assess the broader impact of measures at an earlier stage, including those initially deemed “national.”

Gender-balanced representation

All EWC bodies, including special negotiating bodies (SNBs) and select committees, must aim for at least 40% women and 40% men. If this is not achievable, the employer must provide a written explanation.

End of pre-directive exemptions – including the Euroforum Agreement

The revised Directive removes long-standing exemptions for agreements predating the original 1994 EWC Directive. This includes the Euroforum Agreement, one of the most prominent legacy arrangements.

Employers relying on such agreements must:

Renegotiate EWC agreements that meet the revised Directive’s minimum standards;
Do so within two years after national transposition.

This marks a significant shift for companies that have operated under informal or grandfathered arrangements.

Stronger consultation requirements

Consultation must be:

Timely – taking place before a final decision is made;
Substantive – based on adequate information and realistic timelines;
Reciprocal – central management must issue a reasoned written response to the EWC’s opinion.

This will impact internal governance, decision-making procedures, and transaction timelines.

Mandatory physical meetings & full cost coverage
- At least two in-person EWC meetings per year are required;
- Hybrid/remote formats are permitted only in exceptional cases;
- Employers must fully fund:
  - Travel, training, interpretation;
  - Legal and expert advice.

This elevates both the operational and financial obligations for employers.

Stronger enforcement and remedies
- Member States must implement dissuasive and proportionate sanctions, potentially linked to company size or turnover;
- Legal remedies must be available, including:
- Interim relief;
- Appeal mechanisms;
- Reimbursement of legal costs for EWC representatives.

Chapter 3 Timeline – what to expect

Milestone expected timing
Formal adoption of Directive Q4 2025
Deadline for national transposition Likely Q4 2027
Deadline for employer compliance Likely Q4 2028
End of pre-directive exemptions Immediately after transposition
Although transposition may take time, employers are advised to start preparing now.

Chapter 4 What should employers do now?

We recommend multinational employers take the following actions:

Review existing EWC agreements to assess compliance gaps;
Identify whether you rely on a pre-Directive or Euroforum-style agreement;
Map decision-making processes to ensure early and meaningful EWC involvement;
Budget for mandatory EWC costs, including legal advice and in-person meetings;
Educate leadership and HR teams on the implications of the revised Directive.

Chapter 5 How Hogan Lovells can help

With a strong track record in transnational employment law, our team is well-positioned to support clients through the upcoming changes. Whether you're updating an EWC agreement, managing consultation obligations during a cross-border restructuring, or navigating the new compliance framework: we're here to help.

Authored by Maria Benbrahim.