Labour Law

European Works Councils 2025: What Multinationals Must Review Now

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Equipo Editorial CambiosLegales
Oct 19, 2026 6 min 13 views

Key data

RegulationCorrigendum to Directive (EU) 2025/2450, amending Directive 2009/38/CE on European Works Councils
Publication19 October 2026
Entry into force11 December 2025
Affected partiesMultinational companies with more than 1,000 employees in the EU and at least 150 in two different Member States
CategoryLabour Legislation
Official referenceOJ:L_202690894 / OJ L, 2025/2450, 11.12.2025
Modified regulationDirective 2009/38/CE (European Works Councils)
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If your company has more than 1,000 workers in the European Union and operates in at least two member countries, the regulation on European Works Councils (EWC) directly affects you. Directive (EU) 2025/2450—already in force since 11 December 2025—strengthens obligations for transnational information and consultation, and this corrigendum published on 19 October 2026 confirms that the legal text is definitively fixed with no room for technical interpretation.

This is not a substantive change: the corrections are technical in nature. But their publication is the definitive signal that the regulatory framework is closed and that any structural non-compliance regarding transnational representation can no longer be excused by textual ambiguity.

What does this regulation establish?

Directive (EU) 2025/2450 amends Directive 2009/38/CE, which is the European reference standard on European Works Councils. This corrigendum does not introduce substantive changes, but ensures the correct application of the legal text by correcting technical errors in the original version.

The substantive content of the amended directive is structured around two main pillars:

  • Establishment of European Works Councils: Obligation for companies and groups of companies of Community dimension to create transnational worker representation bodies.
  • Rights to transnational information and consultation: Strengthening of mechanisms by which worker representatives must be informed and consulted on decisions affecting multiple EU jurisdictions.
AspectDirective 2009/38/CE (previous)Directive (EU) 2025/2450 (current)
Regulatory basisOriginal framework for European Works CouncilsStrengthened framework with greater effectiveness in information and consultation rights
Information and consultation rightsRecognized, with variable application by Member StateStrengthened and with effective application expressly required
Council functioningGeneral regulationUpdated rules on establishment and functioning
Text validityValid until amendmentValid from 11 December 2025; technical text corrected on 19 October 2026

Economic and operational impact

The impact is not a fixed fee or amount: the real cost for affected companies comes from non-compliance. The directive expressly warns that non-compliance can result in sanctions and labour disputes in multiple jurisdictions simultaneously.

This means that a multinational that does not have its European Works Council properly established, or that does not respect transnational information and consultation procedures, may face:

  • Administrative sanctions in each of the Member States where it operates.
  • Labour disputes in several jurisdictions in parallel.
  • Nullity of business decisions adopted without respecting the consultation process (restructurings, relocations, transnational redundancies).
  • Reputational damage with unions and workers across the EU.

The operational cost of complying includes reviewing EWC establishment agreements, training representatives, adapting internal communication processes, and coordinating between HR departments in each country.

Who does it affect?

  • Multinational companies with more than 1,000 employees across the EU.
  • That have at least 150 workers in two different Member States.
  • Groups of companies of Community dimension meeting the above thresholds.
  • HR and labour relations departments of these multinationals, responsible for reviewing and maintaining transnational representation structures.
  • Executives and CFOs who make restructuring, merger or relocation decisions with impact in several EU countries.
  • Labour advisors and law firms advising companies with European presence.

Practical example

Imagine a Spanish business group headquartered in Madrid, with 3,000 employees in Spain, 400 in France, 200 in Germany and 150 in Poland. Total in EU: 3,750 employees, present in four Member States.

This group is obliged to establish a European Works Council under Directive 2009/38/CE as amended by Directive (EU) 2025/2450. If the group decides to close its plant in Germany and relocate production to Poland, it must inform and consult the EWC before formally adopting the decision, not after announcing it.

If it fails to do so, worker representatives in Germany can challenge the decision before German courts, while representatives in Poland can do the same before Polish courts. The group thus faces parallel litigation in two jurisdictions, with the legal and reputational costs that entails, plus possible administrative sanctions in each country.

With the technical text now corrected and definitively fixed, there is no room to claim regulatory ambiguity.

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What should companies do now?

  1. Verify if thresholds are exceeded: Check whether the company or group exceeds 1,000 employees in the EU and 150 in at least two Member States. If so, the obligation is applicable.
  2. Review the EWC establishment agreement: If a council already exists, verify that the current agreement complies with the strengthened requirements of Directive (EU) 2025/2450 regarding information and consultation.
  3. Establish the EWC if it does not exist: If the company meets the thresholds and has no council established, initiate the negotiation process with worker representatives immediately.
  4. Review internal decision-making processes: Ensure that any decision with transnational impact (restructurings, closures, relocations) goes through the information and consultation process with the EWC before formal adoption.
  5. Coordinate HR departments in each country: EWC management requires coordination between subsidiaries. Designate a central contact for the council relationship.
  6. Seek legal advice in each affected jurisdiction: Sanctions for non-compliance are applied country by country. A labour advisor with a European perspective is essential for companies with presence in several Member States.

Frequently asked questions

How many employees does my company need to have to be obliged to establish a European Works Council?

The company or group of companies must have more than 1,000 workers across the European Union and at least 150 employees in two different Member States. If both thresholds are met simultaneously, the obligation to establish a European Works Council is applicable under Directive 2009/38/CE as amended by Directive (EU) 2025/2450.

What changes with Directive (EU) 2025/2450 compared to previous regulations?

Directive (EU) 2025/2450 amends Directive 2009/38/CE by strengthening workers' rights to transnational information and consultation and updating rules on the establishment and functioning of European Works Councils. The corrigendum published on 19 October 2026 is technical in nature and does not alter the substantive regulatory framework, but ensures the correct application of the legal text.

When did Directive (EU) 2025/2450 on European Works Councils enter into force?

Directive (EU) 2025/2450 entered into force on 11 December 2025. The corrigendum ensuring the correct application of the text was published on 19 October 2026, but does not modify the entry into force date of the main regulation.

What happens if my company does not comply with European Works Council obligations?

Non-compliance can result in administrative sanctions in each of the Member States where the company operates, as well as labour disputes in multiple jurisdictions simultaneously. Additionally, business decisions adopted without respecting the transnational information and consultation process can be challenged and declared null by courts in each affected country.

Which department is responsible for managing the European Works Council?

The HR and labour relations departments of multinationals are the primary responsible parties for reviewing and maintaining transnational representation structures. However, since decisions triggering the consultation obligation are typically strategic (restructurings, mergers, relocations), senior management and CFOs must be directly involved in ensuring that the EWC consultation process is respected before adopting any decision with impact in several EU countries.

Official source

Consult full regulation at official source

Disclaimer: This article is for informational purposes only and does not constitute legal advice. For specific decisions, consult a qualified professional. Source: https://eur-lex.europa.eu/./legal-content/AUTO/?uri=OJ:L_202690894



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