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Home News & Events LABOUR LAW NEWS: Before ECJ for Limiting Employee Participation Rights in Cross-Border Mergers

LABOUR LAW NEWS: Before ECJ for Limiting Employee Participation Rights in Cross-Border Mergers

Wednesday, 30 November 2011 20:50

On 24 November 2011, the EU Commission has referred The Netherlands before the European Court of Justice for not correctly transposing certain rules into the Dutch legislation on cross-border mergers, specifically those rules contemplated in the relative Directive ( Directive 2005/56/EC ) which ensure that employee participation rights follow the law of the Member State in which the merged company is so registered. It is to be emphasised that Article 16 of the Directive provides several exceptions, which aim, inter alia, to ensure that all employees of a company, irrespective of the Member State where they would be working, must have the same participation rights.

That the present Dutch legislation does not allow those employed with a company resulting from a cross- border merger registered in The Netherlands, to partake in the appointment process of members to the company's supervisory board, was originally prompted in 2008 by a Dutch trade union.