EU companies must consult workers on business decisions

New legislation will come into effect in 2005 in most European countries
||Last Updated: 04/09/2003

Companies in the European Union (EU) with more than 50 employees will be forced to consult workers on major business decisions, with new legislation that has been recently finalized by EU governments and the European parliament.

The new Information and Consultation Directive (Icon) forces companies to consult employees on all significant decisions, such as restructuring, changes in work organization and the company’s overall economic situation.

Critics say that firms will be made to reveal sensitive information because of the new rules. However, companies have the right to hold back information as long as they provide objective proof that its release would damage the company.