Eversheds International

Labour Law and Trade Unions

Works Council and Employee Forums

The challenge for employers

"Outside the public sector most UK employers do not recognise a union. But an increasing number believe in having an effective dialogue with employee representatives on work related issues.

"With increasing globalisation, employers are also experiencing the operation of works councils in their overseas operations. The law reflects and, to a degree, drives this trend, creating legal obligations in an ever wider number of workplace situations both at home and abroad.

"So for employers, whether they love or loathe the idea, it's important to weigh the options when it comes to both domestic and international works councils."

Thomas Player, Partner

How we can help

We have a wealth of experience in establishing UK employee forums, both voluntary and under the Information and Consultation of Employees Regulations 2004. Indeed we helped set up what was probably the first such body in a City of London financial services employer - at Schroder Investments.

The employment teams in most of our overseas offices have of course always dealt with works councils as a fundamental part of their labour scene. Since 1994 such bodies have been increasingly established to address transnational issues and our employment lawyers have been involved in setting up, or advising employers with regard to, over 30 European Works Councils (EWCs). Sometimes the setting up of employee forums is initiated by management, sometimes at the unwelcome behest of employee representatives; we have experienced both, many times. With the 2011 implementation of the 2009 EWC Directive, we can only expect EWC activity to increase and employers should prepare on that basis.

In addition, working across various offices we have advised on the information and consultation mechanisms for a Societas Europea, the new type of international super-corporation.

In all cases the emphasis is on tailoring the structure of our advice to meet your objectives, for or against the concepts, within or beyond your existing structures and in accordance with your budget. And if you do introduce the concept of a works council, we will suggest practical rules and processes to ensure effective and relevant communication.