BEERG: UK MEPs Push for Board Representation, Consultation Rights for Employees in Law Package

November 16, 2018

UK Members of the European Parliament who are on the European Parliament's Employment Committee called for changes to the European Commission's Company Law Package in order to "balance company mobility with workers' rights."

The Committee recommended that companies that move their seat from one EU country to another must:

  • Give workers full information and consultation rights,
  • Give workers representation on the company board, and
  • Have real economic activity in the country to which they are moving in order to avoid the multiplication of "letterbox companies."

BEERG's take:  "While the company law package does not touch on European Works Councils, EU legislation has a habit of 'spilling-over,' with formulae included in one piece of legislation often being transported across into other, related legislation... this is legislation worth watching closely, especially as some 200 or so EWCs may have to move out of the UK as a result of Brexit."

Read the full BEERG Global Labor Newsletter.