CHAPTER 1. Definition and characteristics

In order to provide for the information and consultation rights of employees in Community-scale undertakings and Community-scale groups of undertakings, a European Works Council must be set up, or a procedure for informing and consulting employees must be established in each of these undertakings and in each of these groups of undertakings.

However, where a Community-scale group of undertakings includes one or more undertakings or groups of undertakings which are themselves Community-scale undertakings or groups of undertakings, the establishment of the European Works Council or the establishment of the information and consultation procedure shall be carried out at the level of that group unless the agreement referred to in Article 12 provides otherwise.

The arrangements for informing and consulting employees shall be defined and implemented in such a way as to ensure their effectiveness and to enable effective decision-making by the undertaking or group of undertakings. The central management of Community-scale undertakings and Community-scale groups of undertakings and the European Works Council members or, where appropriate, the employees’ representatives in the framework of an information and consultation procedure shall cooperate in good faith with due regard to their reciprocal rights and obligations.

Characteristics of Community-scale undertakings and Community-scale groups of undertakings:

1. Community-scale undertakings:

That they have workplaces in different Member States of the European Union and the other signatory States of the Agreement on the European Economic Area.

The enterprise employs 1,000 or more employees in all the Member States.

The enterprise employs in at least two different Member States 150 employees or more in each of them.

2. Community-scale group of undertakings:

This is one in which the following conditions are met:

It employs 1,000 or more employees in all the Member States.

It comprises at least two group undertakings in different Member States.

At least one undertaking of the group employs 150 employees or more in one Member State, and at least one other undertaking of the group employs 150 employees or more in another Member State.