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29 May 2019
The European Commission has revised its March 2018 guidance on the legal repercussions of the United Kingdom's withdrawal from the European Union for European works councils, including the implications of a no-deal Brexit.
The European Commission's notice to stakeholders does not have any formal legal status, but will be persuasive in any dispute. It confirms the analysis in a recent article on the impact of Brexit on European works councils currently governed by UK law. In summary, the European Commission considers that a no-deal Brexit would have the following consequences:
The European Commission's notice therefore confirms that, even in the event of a no-deal Brexit, European works councils will continue to exist and operate to ensure that the rights of employees in remaining EU member states are not prejudiced.
Management should proactively designate a new representative agent in a remaining EU member state, in order to avoid governing law based solely on headcount numbers on an arbitrary date in the future.
For further information on this topic please contact David Hopper or Kerry Salisbury at Lewis Silkin by telephone (+44 207 074 8000) or email (email@example.com or firstname.lastname@example.org). The Lewis Silkin website can be accessed at www.lewissilkin.com.
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