European Works Councils

Original Language Title: Conselhos de empresa europeus

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Read the untranslated law here: http://app.parlamento.pt/webutils/docs/doc.pdf?path=6148523063446f764c3246795a5868774d546f334e7a67774c336470626d6c7561574e7059585270646d467a4c316776644756346447397a4c334271624463344d5331594c6d527659773d3d&fich=pjl781-X.doc&Inline=false

1 DRAFT law No. 781/X/4th "European works councils" explanatory memorandum to the law No. 40/99, of 9 June, which transposed the Directive 94/45/EC of 22 September, become more effective in our legal system, the right to information and consultation of workers or of groups of Community-scale undertaking to regulate the institution of works councils or simplified procedures for information and consultation in undertakings and Community-scale groups of undertakings.

Subsequently, with a view to simplifying the legislation and based on ideals of systematization and codification of labour law, law No. 99/2003 s, of 27 August, regulated the matter, referring to special legislation, law No. 35/2004, of 29 July, the rules that established the process of negotiations, the agreements on information and consultation and the establishment of a European Works Council.

Finally, in compliance with the governmental decision to review labour legislation, in accordance with what was poured in the 17TH Constitutional Government program, the labour code, in its current version approved by law No 7/2009, of 12 February, referred to special legislation regulating the matter.

Thus, this draft law to revise the system in force, transposing to the internal legal order the Directive 94/45/EC of 22 September 1994 on the establishment of a European Works Council or an information and consultation procedure in Community-scale undertakings and Community-scale groups of undertakings, the Directive 97/74/2 EC , of 15 December 1997, which makes extending to the United Kingdom of Great Britain and Northern Ireland the previous directive and Council Directive 2006/109/EC of 20 November 2006 adapting to first due to the accession of Bulgaria and Romania, and taking into account the commitment that exists between the Council and the European Parliament on the recast of the directives.

It should be noted that specific regulations which now proposes not intends to introduce an amendment to the legal framework currently in force deep, but only organize it more intelligible and accessible, if correct situations that have proved to be inadequate in its practical application, limiting to a minimum the burdens imposed on undertakings or establishments while ensuring the effective exercise of the rights.

Thus, the Members of the Socialist Party the undersigned, in accordance with present legal and constitutional regulations applicable, the following draft law: chapter I General provisions article 1 subject-matter and scope 1-this law transposes to the internal legal order the Directive 94/45/EC of 22 September 1994 on the establishment of a European Works Council or an information and consultation procedure in Community-scale undertakings and Community-scale groups of undertakings Directive 97/74/EC of 15 December 1997, which makes extending to the United Kingdom of Great Britain and Northern Ireland the previous directive and Council Directive 2006/109/EC of 20 November 2006 adapting to first due to the accession of Bulgaria and Romania, and taking into account the commitment that exists between the Council and the European Parliament on the recast of the directives. 2-this law takes into account the directives referred to in the preceding paragraph apply in the European economic area pursuant to the decisions of the Joint Committee No 55/95, June 1995, 22 3 n° 95/98 of 25 September 1998 and no. 132/2007 of 26 October 2007. 3-For the exercise of the right to information and consultation of workers undertaking or Community-scale group of undertakings may set up a European Works Council or an information and consultation procedure covering all establishments of the Community-scale undertaking or all companies of the group are located in Member States, although the main headquarters and administration effectively is situated in another Member State without prejudice to any wider scope established by the Institute. 4 – the European Works Council or the information and consultation procedure established in a Community-scale group of undertakings covering the undertakings or Community-scale groups of undertakings that constitute this group, unless otherwise specified in the agreement that the Institute.

Article 2 concepts for the purposes of this law: (a)) Administration, the Directorate of the Community-scale undertaking or the direction of the controlling company of the Community-scale group of undertakings; b) consultation, the exchange of views between employees ' representatives and the administration or other appropriate impersonation level, in time, of form and content that enable those expressing an opinion on the measures to which the appointment relates, within a reasonable time; c) Community-scale undertaking which employs at least 1000 employees within the Member States and 150 workers in each february 1 Member States; d) Member State, the Member State of the European Union or covered by the agreement on the European economic area; and) Community-scale group of undertakings, the group formed by controlling undertaking and one or more subsidiaries that employ at least 1000 employees within the Member States and has two companies in two Member States with a minimum of 150 workers each; f) information, the transmission of data by the administration or other appropriate impersonation level, workers ' representatives, in time, of form and content that will enable them to understand and assess the impact of the matter concerned and prepare query about it; g) Transnational Issue, relating to the entire company or Community-scale group of undertakings or, at least, the two institutions or companies owned, respectively, the company or the group situated in two different Member States. 4 Article 3 controlling undertaking 1-the company with headquarters in national territory belonging to Community-scale group of undertakings controlling undertaking of the group if you have on one or more undertakings dominant influence resulting, in particular, of the ownership of capital or the provisions that govern. 2-it is assumed that the company has dominant influence over another when, directly or indirectly: a) Can appoint more than half of the members of the administrative or supervisory body; b) holds more than half of the votes in the General Assembly; (c)) Have the majority of the share capital. 3-for the purposes of the preceding paragraph, the rights of the dominant undertaking comprises the either subsidiary or of a person acting in his own name, but on behalf of the controlling undertaking or of any subsidiary, not considering the person mandated to exercise functions under the insolvency proceedings. 4-If two or more undertakings satisfy the criteria referred to in paragraph 2, these are applicable according to their order of precedence. 5-the society covered by subparagraph (a)) or c) of paragraph 5 of article 3 of Regulation (EC) No 139/2004, of the Council of 20 January on the control of concentrations between undertakings, it is not considered that controls the company that has shares. 6-If the company that controls a group of companies has headquarters in Member State considers that a company located in national territory controlling undertaking when represents, for this purpose, the company that controls the group or, in the absence of this representative, when employing the largest number of employees between group companies located in Member States.

CHAPTER II Provisions and transnational agreements SECTION I scope article 4 5 transnational legal regime Application or conventional 1-the regime of this chapter shall apply to the undertaking or Community-scale group of undertakings whose main headquarters and administration in the national territory, including their establishments or undertakings situated in other Member States. 2-If the main headquarters and administration of the company or the Group of companies is located in national territory, this chapter is still applicable since: a) exists in national territory a representative of administration; b) there is a representative of the Administration in any Member State and is situated in the national territory of the establishment or group undertaking employing the greatest number of employees in a Member State. 3-the agreement between the management and the special negotiating body, under the legislation of another Member State in whose territory the headquarters and main administration of the company or of the group, as well as the regime that this legislation is applicable in the establishment of European Works Council, require establishments or undertakings situated in the national territory and its workers.

SECTION II negotiating procedure


Article 5 1-trading initiative the Administration promotes negotiations for establishment of a European Works Council or a procedure for the information and consultation, on its own initiative or at the written request of 100 or more workers engaged on at least two establishments of Community-scale undertaking or two group companies, since situated in different Member States, or their representatives. 2 – the Administration can express willingness to negotiate through communication to employees of the company or of the group. 3-the workers or their representatives can communicate the will to start trading the administration or the directions of establishments or enterprises that are engaged, which in the latter case, transmit to that. 4 – Constitutes a serious infraction violation of provisions at the end of the preceding paragraph. 6 article 6 special negotiating body 1-in the negotiations referred to in the previous article, the employees of the undertaking or Community-scale group of undertakings are represented by a special negotiating body composed of members that correspond to the workers employed in each Member State, each State one representative per each 10% of workers employed in all of them , or a number less than the corresponding to that percentage. 2-the special negotiating body must communicate its composition to the Administration, which reports on directions of establishments of the company or group companies. 3-If, during negotiations, there is no change in the structure of the company or of the group or the number of employees of the establishments or enterprises with relevance to the application of the preceding paragraph, the composition of the special negotiating body must be adjusted accordingly, without prejudice to the time limits laid down in article 12. 4-members of the special negotiating body representing employees of the establishments or undertakings situated in the national territory are appointed or elected in accordance with article 26.

Article 7 negotiating agreement on information and consultation 1-the Administration should initiate the negotiation of an agreement with the special negotiating body on information and consultation of workers, giving that knowledge to directions of establishments of the company or group companies. 2-the special negotiating body shall have the right to meet immediately before any negotiation meeting. 3-unless otherwise agreed, the representatives of the employees of establishments or undertakings situated in non-Member States may attend the negotiations as observers, without the right to vote. 4-the special negotiating body may be assisted by experts of its choice, in particular representatives of workers ' organisations recognised correspondents at Community level. 5-management and the special negotiating body shall comply with the principles of good faith in the course of negotiation. 6-management and the special negotiating body may agree in writing, the establishment of a European Works Council or one or more information and consultation procedures. 7-the special negotiating body shall act by a majority of the conclusion of the agreement referred to in the preceding paragraph. 7 8-the special negotiating body may decide not to start or finish the negotiation that is ongoing by a two-thirds majority. 9-in the case referred to in the preceding paragraph, the workers or their representatives can only propose new negotiations two years after the decision, except if the parties agree a shorter deadline. 10-Constitutes a serious infraction the breach of the provisions of paragraphs 1, 2, 3 or 4.

SECTION III information and consultation agreement article 8 content of the agreement 1-without prejudice to the provisions of the following articles, the agreement establishing the European Works Council or one or more information and consultation procedures regulates:) Which the establishments of the company or the Group companies that are covered; b) periodicity of information to be provided by the Administration on the number of workers at the service of the company's establishments or undertakings of the group covered by the agreement; c) the number and distribution of employees ' representatives by the Member States concerned, taking into account, to the extent possible, the balanced representation of workers according to the activity, professional category and sex, the duration of the mandates and the adjustments resulting from changes in the structure of the company or the Group; d) the number of members, the appointment, responsibilities and procedures for restricted Council meeting, if it is established; and the agreement) with regard to applicable law, entry into force, duration, situations in which can take place the complaint or amendment thereof, in particular the change in the structure of the undertaking or Community-scale group of undertakings, and the procedure for its renegotiation. 2-the agreement may regulate other matters, in particular the criteria for classification as confidential of information to be provided by the administration. 3-Is a serious infraction the breach of the agreement in part on the provisions of paragraph b) of paragraph 1.

8 article 9 establishment of European Works Council 1-the agreement establishing the European Works Council regulates: a) the rights of information and consultation of the Council on cross-border issues, the procedures for the exercise, as well as liaison with information and consultation rights of other structures of collective representation of workers; (b)) the location, frequency and duration of meetings of the Council; (c)) The financial and material resources to be made available by the Administration to the Council. 2 – If the agreement does not regulate the relationship referred to in point (a)) of the preceding paragraph, the information and consultation of the European Works Council and the other structures of collective representation of workers must be ensured whenever they're about decisions likely to lead to major changes in work organisation or in employment contracts. 3-the right to information and consultation is provided by the Administration, or another appropriate representation level, within a reasonable time. 4-members of the Council representing the employees of the establishments or undertakings situated in the national territory are appointed or elected in accordance with article 26. 5-Is very serious infraction the breach of the agreement in part on the provisions of subparagraph (a)) or b) of paragraph 1, and constitutes serious infraction the breach of the agreement in part on the provisions of subparagraph (c)) of the same paragraph.

Article 10 establishment of one or more information and consultation procedures 1-the agreement establishing one or more information and consultation procedures regulates: a) the rights of information and consultation on transnational issues likely to affect the interests of workers and, where appropriate, other rights; (b)) the right of workers ' representatives ' meeting to assess information provided by the administration. 2-the right to information and consultation is provided by the Administration, or another appropriate representation level, within a reasonable time. 3-the representatives of the employees of the establishments or undertakings situated in the national territory are appointed or elected in accordance with article 26. 4-Is very serious infraction the breach of the agreement in part on the provisions of subparagraph (a)) or b) of paragraph 1.

9 Article 11 Communications to the Ministry responsible for labour area 1-the Administration should inform the content of the agreement to the competent service of the Ministry responsible for labour area. 2-the European works councils and employees ' representatives on the information and consultation procedure shall inform the service referred to in paragraph 1 of the identity and source of the members States. 3-If the main headquarters and the administration are situated in another Member State, the workers ' representatives appointed in the national territory shall communicate their identity in accordance with the preceding paragraph. 4-light infraction Is a violation of the provisions of paragraph 1.

SECTION IV mandatory Institution of European Works Council article 12 Cases of mandatory institution of the European Works Council is established a European Works Council in undertaking or Community-scale group of undertakings, within the meaning of this section, in the following cases: a) if the Administration refuses to negotiate within six months of the request to start the negotiation on the part of the workers or their representatives; b) if there is no agreement at the end of three years from notification of willingness to negotiate on the part of the Administration, or request for early negotiation on the part of the workers or their representatives if previous, and the special negotiating body has not acted did not start or end the negotiation that is ongoing.


Article 13 Composition of the European Works Council 1 – the composition of the European Works Council shall apply the provisions of paragraph 1 of article 6. 2-members of the European Works Council must be employees of the company or group of companies. 10 3-members of the European Works Council representing workers in establishments or undertakings situated in the national territory are appointed or elected in accordance with article 26. 4-the European Works Council shall inform the Member State of origin and identity of its members, the Administration, which reports on directions of establishments of the company or group companies.

Article 14 operation of the European Works Council 1 – the activities of the European Works Council is coordinated by a restricted Council, with up to five members, elected from among themselves by the members of that. 2-the European Works Council shall approve its rules of procedure. 3-before any meeting with the Administration, the European Works Council or the Council has restricted the right to assemble, and can participate in the meeting of the other members of the Council representing the workers of institutions or companies directly affected by the measures in question. 4-the European Works Council and the restricted Council may be assisted by experts of its choice, where they consider it necessary for the performance of their duties. 5-Constitutes a serious infraction the breach of the provisions of paragraph 3.

Article 15 information and consultation of the European Works Council 1-the European Works Council has the right to be informed and consulted by the administration or other appropriate impersonation level, within a reasonable period, on transnational issues, in particular, the situation and probable trend of employment, investments, Fund changes concerning organisation, introduction of new working methods and new production processes , transfers of production, mergers, downsizing or closures of undertakings, establishments or important parts of establishments and the redundancies. 2-the European Works Council has the right to be informed, in particular on the structure, economic and financial situation, the probable development of the activities, the production and sales of the company or Community-scale group of undertakings. 3-the European Works Council has the right to be informed and consulted by the Administration on any measures affecting the interests of workers, in particular the change in facilities involving transfer of workplaces, closure of establishments or undertakings or collective redundancies. 4-in the case referred to in paragraph 1 and without prejudice to article 17, the European Works Council has the right to meet, at his request, with 11 administration or other competent impersonation level to make decisions that would be more suitable, to be informed and consulted on the measures concerned. 5-before the meeting referred to in the preceding paragraph, the Board shall submit to the European Works Council a detailed report and documented on the measures provided for. 6-the meeting should take place as soon as possible and, if so requested by the Council, have also restricted right to her participate in other members of the Council representing the workers of institutions or companies directly affected by the measures. 7-the restricted Council or the European Works Council can issue an opinion on the measures referred to in paragraph 2, during the meeting or in 15 days, or even in higher deadline agreed. 8-Is very serious infraction the breach of the provisions of paragraphs 1, 2, 3, 4 or 5 is serious misdemeanor violation of paragraph 6.

Article 16 annual report 1-the directors shall present to the European Works Council a detailed annual report and documented on the evolution of the activities of the undertaking or group of undertakings, giving notice of the same to the directions of the establishments or undertakings of the group. 2-the report shall contain information on the structure of the company or of the group, the economic and financial situation, the probable development of activities, including production and sales, the situation and probable development of employment and investment, the most important changes concerning organisation, working methods or production processes, transfers of production, mergers, downsizing or closure of companies , establishments or important parts of establishments and collective redundancies. 3-Is very serious infraction violation of provisions of this article.

Article 17 meeting with the Administration-1 upon receipt of the annual report, the European Works Council has the right to meet with the Board at least once a year, for the purposes of informing and consulting. 2-the meeting referred to in paragraph 1 takes place one month after the receipt of the report, unless the European Works Council agree to a shorter period. 12 3-the Administration should inform the directions of establishments of the company or of the Group companies of the holding of the meeting. 4-management and the European Works Council shall regulate, by Protocol, procedures for the meetings. 5-very serious infraction Constitutes the violation of the provisions of paragraph 1 or 2.

Article 19 negotiation of an agreement on information and consultation 1-Four years after its establishment, the European Works Council may propose to the Administration institution, by agreement, of a European Works Council or an information and consultation procedure. 2-the Administration should respond to the proposal and, in the course of negotiation, the parties must respect the principles of good faith. 3-The agreement shall apply the provisions of articles 8 to 11. 4-In case of agreement, the provisions of this section shall cease to apply from the time of designation or election of members of the European Works Council as well established or employees ' representatives under the information and consultation procedure. 5-very serious infraction Constitutes the violation of the provisions of paragraph 2.

Section V common provisions article 20 Relationship between management and workers ' representatives the Administration, members of the European Works Council and representatives of workers in the framework of the information and consultation procedure should cooperate and act in good faith in the exercise of rights and in the fulfilment of their duties.

Article 21 confidential information and judicial control 1 – the provisions of the labour code on the duty of confidentiality in respect of information received for collective representation structures of 13 workers exercising the right to information and consultation shall apply to members of the special negotiating body, the experts of this and of the European Works Council and representatives of workers in the framework of the information and consultation procedure. 2-the provisions of the preceding paragraph is extended to representatives of the employees of establishments or undertakings situated in Member States to assist the negotiation, in accordance with paragraph 3 of article 7. 3 – the Administration can only classify as confidential or refuse the provision of information in accordance with the agreement or, failing that, of the law. 4-the decision referred to in the preceding paragraph must be justified, as far as possible, without jeopardising the reservation information. 5-the special negotiating body, the European Works Council and representatives of workers in the framework of the information and consultation procedure can challenge the decision of the Administration to require confidentiality, not to provide certain information, not to carry out consultation, under the code of labour procedure. 6-Is very serious infraction the breach of the provisions of paragraph 3.

Article 22 Information of local representatives or workers ' members of the European Works Council shall inform the representatives of the employees of the establishments or of the undertakings of the group or, in their absence, the workers, on the information received and the results of the consultations.


Article 23 financial and material Resources 1-the Administration should: a) Pay the expenses of the special negotiating body relating to trading, so that it can properly carry out their duties; b) Endow the European Works Council of the financial resources necessary for their operation, including the restricted Council; c) Pay the expenses of, at least, an expert of the special negotiating body or the European Works Council; d) assure the members of the special negotiating body and of the European Works Council the formation which is necessary for the exercise of these functions, without loss of remuneration. 2-are not covered by the preceding paragraph the charges with the observers referred to in paragraph 3 of article 7. 14 3-expenditure referred to in paragraph 1 are, in particular, those relating to the Organization of meetings, translation, business trips and visits and remuneration of expert. 4-concerning the European Works Council, the provisions of the preceding paragraph may be regulated differently by agreement with the Administration, except for the costs of an expert. 5-the Board may defray the travel and subsistence expenses of members of the special negotiating body and of the European Works Council based in the mission the establishments or enterprises in which they work and for the costs of the expert, the conditions of employment of members coming from the same Member State. 6-the application of the criterion referred to in paragraph 1 may not result in payment of travel and subsistence expenses to a member of the special negotiating body or the European Works Council which is less favourable than the other. 7-the special negotiating body, the European Works Council, the Council and the representatives of workers in the framework of the information and consultation procedure are entitled to material and technical means required for the performance of its functions, including facilities and sites for posting of information. 8-Is very serious infraction the breach of the provisions of paragraph 1 and constitutes a serious infraction the breach of the provisions of paragraphs 6 or 7.

CHAPTER III national provisions article 23 scope of national provisions the provisions of this chapter shall apply to establishment or company located in territory belonging to the undertaking or Community-scale group of undertakings whose main and effective administration headquarters is located in any other Member State, as well as the representatives of the employees.

Article 24 calculation of number of employees 1-for the purposes of this chapter, the number of workers of establishment or undertaking corresponds to the average number of workers in the two years prior to the initiative of the negotiation or the institution of mandatory European Works Council, pursuant to article 5 or article 12. 15 2-the part-time worker is considered for the purposes of the preceding paragraph, regardless of the length of your normal work period. 3-the management of the company or, in the absence of the representative of the undertaking or establishment that employs the largest number of employees between group companies situated in Member States, it shall inform the parties, at their request, about the number of employees and their distribution among Member States. 4-Is very serious infraction the breach of the provisions of the preceding paragraph.

Article 25 workers ' representatives for the request for early negotiations for the purpose of application for commencement of negotiation provided for in paragraph 1 of article 5, the Commission representatives of workers and trade union associations.

Article 26 designation or election of members of the special negotiating body and of European Works Council 1-within two months after the Administration's initiative or the request for negotiations referred to in paragraph 1 of article 5, or that provided for in article 12 which stipulates the imposition of mandatory European Works Council, the representatives of the employees of the establishments or undertakings situated in the national territory are designated , in the following order: a) by agreement between the Committee of workers and trade union associations or between workers ' committees of Group companies and trade union associations; b) if there is no trade union associations, by the workers or by agreement between the workers ' committees of Group companies; c) if there is no Committee of workers, by agreement between the unions that together represent more than half the unionized workers of establishments or enterprises. 2-only the unions that represent at least 5% of the employees of the establishments or companies can participate in the designation of employees ' representatives, without prejudice to the next paragraph. 3-The unions which together represent at least 5% of workers may mandate one of them to participate in the designation of employees ' representatives. 4-if they are not designated in accordance with the preceding paragraphs or where at least one-third of workers requires it, workers ' representatives are elected by direct and secret ballot from among candidates presented by at least 100 or 10% of employees. 16 5-convening of the Electoral Act, the nominations, the polling stations, the voting, the discharge of the outcome of the election and its disclosure in the establishments or undertakings are governed by the provisions applicable to commissions of workers, with the necessary adaptations.

Article 27 term of Office the term of Office of the members of the European Works Council under the information and consultation procedure lasts for four years, unless otherwise agreed.

Article 28 protection of employees ' representatives 1-members of the special negotiating body, the representatives of workers in the framework of the procedure for the information and consultation and the European Works Council members benefit from the legal protection of members of collective representation of workers and are entitled to credit for: 25 hours) monthly for the exercise of their functions; b) time required to participate in meetings with the Administration and in preparatory meetings, including time for travel. 2 – the credit referred to in the preceding paragraph counts as service time, including for the purpose of retribution. 3-the credit referred to in subparagraph (a)) of paragraph 1 is not applied simultaneously with the corresponding to another structure of collective representation of the workers or the Union Rep.

Article 29 administrative responsibility Regime shall apply to offences arising from the violation of this law the process of constant employment of specific degree offenses, as well as the provisions of the labour code on administrative liability.

CHAPTER IV transitional and final provisions article 30 17 Adaptation of the agreement the significant change in the structure of the company or of the Group 1-When significant changes occur in the structure of the undertaking or Community-scale group of undertakings, and in the absence of provisions in the agreement or in the event of a conflict between the provisions of two or more applicable agreements, the Administration starts negotiating to adapt existing agreements to this change pursuant to paragraph 1 of article 5. 2-in the case referred to in the preceding paragraph, the special negotiating body shall be composed of members appointed or elected in accordance with article 26 and by at least three members of the European Works Council or of each of the existing European works councils.

Article 31 agreements in force 1-Without prejudice to the provisions of the preceding article, is not subject to the obligations arising from the present law the company or Community-scale group of undertakings which have concluded or revised an agreement after the entry into force of law No. 40/99, of 9 June. 2-the agreement referred to in the preceding paragraph is still subject to the applicable legislation when it was signed or revised.

Article 32 entry into force this law shall enter into force on the first day of the month following its publication.

Members,