Corporate Mobility - The Involvement of Employees

In April 2018, the European Commission presented a proposal for a Directive amending Di-rective 2017/1132 as regards cross-border conversions, mergers and divisions. This article dis-cusses the proposed provisions to protect the interests of employees in a cross-border operation. Their position would be strengthened since employee representatives are granted information and consultation rights. As to the protection of existing board level employee representation rights, the Proposal follows the EU legal framework on the involvement of employees, con-sisting of a negotiation process between representatives of the employees and the management. As Standard Rules apply if no agreement can be reached, negotiations take place with the law as a sentinel. Practice has shown that this complicated legal framework is effective in protect-ing existing employee participation rights. The Proposal shows that in 2019, this carefully vetted political compromise leaves EU legislators little room to manoeuvre by simplifying the framework or strengthening the position of employees.