Under the Information and Consultation Directive, which has recently been adopted by the EU Employment Ministers’ Council, UK businesses will need to consult their employees regarding significant business decisions, including mergers and acquisitions. EU member states have until March 2005 to implement legislation to comply with the directive.
The UK and Ireland have managed to negotiate exemptions from the immediate application of the directive. The directive will be introduced in the UK on a phased basis: employers with more than 150 workers will have to set up a formal consultation procedure from 2005, employers with 100-plus employees from 2007 and employers with 50-plus employees from 2008. It is estimated that the directive will eventually apply to approximately 40,000 UK employers.
