Ending Article 13: Operational Implications for U.S. Companies with EWCs

European Works Councils (EWCs) are entering a more stringent regime. Last week, the European Parliament approved the final text of the revised EWC Directive. The Directive ends the Article 13 exemptions but does not contain the trade union demands for injunction rights blocking management decisions

HR Policy Global’s Take: For U.S.-headquartered companies already operating an EWC, the near-term priority is to review governance, documentation, and manager readiness in advance of national transposition and enforcement. Tom Hayes and Alan Wild are experts in this field and are ready to help.

Key changes

• Pre-1996 (Article 13) arrangements may be opened to negotiation under the legal framework.
  
  
• More rights for workers and EWCs.
  
  
• Increased costs for employers, such as funding EWC experts, covering legal fees, training, and related expenses.
  
  
• More management’s responsibilities regarding the provision of information and consultation with EWCs.

Timeline: EU Member States must transpose the new Directive by 2027. The Directive will impact both companies that already have a European Works Council (EWC) and those that do not yet have one but fall within scope — specifically, businesses with at least 1,000 employees across the EU or European Economic Area, and at least 150 employees in each of two member countries.

Actions that companies can take now: 

• Risk mapping: Confirm entity footprint, headcount, and legal basis (Article 6 vs. legacy Article 13). Identify jurisdictions likely to transpose early.
  
  
• Special Negotiation Body (SNB) readiness (if legacy): Prepare an SNB playbook—negotiators, term-sheet positions (scope, timelines, expert/training budgets), and document templates.
  
  
• Consultation process: Implement a standard operating procedure that ensures timely information, a formal EWC opinion, and a reasoned written reply documented via agendas, minutes, and retained files.
  
  
• Budgeting: Ensure sufficient budgets for translation, travel, training days, and expert advisers.