Luxembourg, with its strategical position, dense presence of multinational companies, exceptional international workforce and active job market, provides a particularly fertile ground for the operation of the European Work Councils (EWCs).
Established under Directive 2009/38/EC of the European Parliament and of the Council of 6 May 2009 (the "Directive"), EWC serves as a key employee representative body which significantly strengthens the rights of employees in transnational companies to be informed and consulted on transnational scale matters, promoting social dialogue and employee participation at the European level.
In Luxembourg, the Directive was transposed by the law of 26 December 2012, effective from 3 January 2013. The law introduced into the Labour Code the framework for the creation of a EWC or an alternative procedure within Community-scale undertakings and groups.
Any community-scale undertaking or any community-scale group of undertakings must have a EWC.
A community-scale undertaking means any undertaking with at least 1,000 employees within the member states of the EU and at least 150 employees in each of at least two member states. A community-scale group of undertakings means a group of undertakings having at least 1,000 employees within the member states and at least two group undertakings in different member states with at least one group undertaking with 150 employees in one member state and at least one other group undertaking with 150 employees in another member state.
The rights of the EWC will be determined in the agreement to be concluded in this respect. In principle, the competence of the EWC is limited to information and consultation on transnational economic and social questions concerning the entire community-scale undertaking or group of undertakings.
The negotiation for the establishment of the EWC shall be started by the central management of a Company whose headquarters or central management is in Luxembourg in the following circumstances:
- on its own initiative; or
- at the written request of at least one hundred employees or their representatives, belonging to at least two undertakings or establishments located in at least two Member States; or
- at the written request of the trade unions that are signatories to the applicable collective agreement, if any, including at least one trade union organisation that is the most representative at national level; or
- at the written request of a trade union organisation that is the most representative at national level, represented in at least one of the staff delegations of the undertakings or establishments concerned.
Such written requests must be addressed to the central management. Employees and their representatives must be informed accordingly to ensure transparency and effective communication throughout the election process.
In Luxembourg, members of the EWC representing employees working in Luxembourg are elected through an indirect process. These members are chosen by the representatives of the staff delegations of the relevant companies or entities, elected by a simple majority of votes cast by those present at the assembly.
The EWC has the right to meet with the central management once per year in order to be informed and consulted on transnational matters within its competences.
The EWC in Luxembourg operates alongside local staff delegations, which are the primary employee representative bodies at the national level. While the EWC focuses on transnational issues, there is often close cooperation and communication between the EWC and local staff delegations and eventually trade unions where applicable, especially when issues discussed at the EWC have local implications. However, the EWC remains a distinct body with its own scope, and its relationship with other staff representatives' bodies is shaped by both legal requirements and practical arrangements within each undertaking or group.
It is important to highlight that the transposition of the Directive in Luxembourg closely mirrors the original text of the Directive. As a consequence, this approach does not fully address all local particularities and, at times, lacks the necessary precision, which may result in ambiguities or interpretative challenges. Such uncertainties raise legal risks and seeking the guidance of experienced legal professionals is strongly recommended to ensure compliance and mitigate potential issues.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
