On 9 October 2025, the European Parliament approved a major revision of the EWC Directive, introducing significant changes to how European Works Councils are established and operate. Member States must transpose the Directive by 2027, with most provisions taking effect in 2028.

The revised Directive applies to multinational companies with at least 1,000 employees in the EU or EEA, and at least 150 employees in two different Member States. This includes companies with existing EWCs and those newly meeting the criteria.

A key change is the removal of exemptions for “grandfathered” EWC agreements made before 1996. Employees in these companies can now initiate new negotiations. If no agreement is reached within two years, default rules apply, granting broader advisory rights, mandatory physical meetings, expert support, and reimbursement of legal and training costs.

The definition of “transnational” matters has been expanded to include indirect effects across borders. Companies must consult EWCs earlier and respond to their advice before final decisions are made.

Information and consultation rights are strengthened. Employers must provide timely, meaningful information and written responses to EWC opinions. This may extend decision-making timelines but enhance dialogue.

Employers must cover all reasonable costs related to EWC operations, including expert fees, training, and legal support. EWC agreements must clearly outline funding arrangements.

Gender representation targets of at least 40% per gender are encouraged when forming EWCs. Confidentiality rules are tightened – management must justify restrictions, including scope and duration, and may only withhold information if disclosure would seriously harm the company.

Establishing an EWC no longer requires a coordinated employee request. If there are at least 100 employees or representatives in two Member States, the company must initiate negotiations. The first meeting must occur within six months, or default rules apply.

Member States must ensure effective enforcement, including legal remedies and mandatory financial penalties for breaches. Sanctions will consider the severity and impact of violations and may factor in company turnover.

Companies are advised to review existing EWC arrangements and monitor national implementation closely. The removal of legacy exemptions will take effect immediately upon transposition, while other changes will apply from 2028.