Proposal for a Council Directive on the extension of Council Directive 94/45/EC of 22 September 1994, on the establishment of a European Works Council or a procedure in Community-scale undertakings and Community-scale groups of undertakings for the purpose of informing and consulting employees, to the United Kingdom of Great Britain and Northern Ireland
Date: 1997-09-23
Institutions: European Commission
Subjects: European undertaking, Northern Ireland, United Kingdom, parental leave, worker consultation, works council

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 23.09.1997 
COM(97) 457  final 

97/0238 (CNS) 
97/0239 (CNS) 

Proposal for a 
COUNCIL DIRECTIVE 
on the extension of Council Directive 94/45/EC of 22 September 1994, on the 
establishment of a European Works Council or a procedure in Community-scale 
undertakings and Community-scale groups of undertakings for the purposes of 
informing and consulting employees, to the United Kingdom of Great Britain 
and Northern Ireland 

Proposal for a 
COUNCIL DIRECTIVE 
extending Council Directive 96/34/EC of 3 June 1996, on the framework agreement 
on parental leave concluded by UNICE, CEEP and the ETUC, to the 
United Kingdom of Great Britain and Northern Ireland 

(presented by the Commission) 

SUMMARY 

The aim of this proposal  is to  extend  Council  Directive  94/45/EC  of 22  September  1994 on 
the  establishment  of  a  European  Works  Council  or  a  procedure  in  Community-scale 
undertakings and  Community-scale groups  of undertakings for  the purposes  of informing  and 
consulting employees to the United Kingdom of Great Britain and Northern Ireland. 

Directive 94/45/EC was adopted  on 22 September  1994 under Article 2 (2) of the Agreement 
on social policy annexed to Protocol  14 on social policy annexed to the Treaty establishing the 
European Community. It does not apply to the United Kingdom of Great Britain and Northern 
Ireland. 

The  Amsterdam  European  Council  noted  with  approval 
Intergovernmental  Conference to incorporate the Social Agreement in the EC Treaty. 

the  agreement  of 

the 

At the said European Council the Members of the European Council whose States are party to 
the  Agreement  on  Social  Policy  annexed  to  Protocol  14 to  the  Treaty  on  European  Union 
welcomed  wholeheartedly  the  decision  of  the  United  Kingdom  to  accede  to  the  social 
provisions of the new Treaty.  They noted with great  satisfaction  the willingness of the United 
Kingdom  to  accept  the  Directives  which  have  already  been  adopted  on  the  basis  of  that 
Agreement.  The  European  Council  noted  that  a  means  had  to  be  found,  in  advance  of  the 
signature of the Amsterdam Treaty, to give legal effect  to these wishes. 

At the Council of 24 July  1997, the Council and the Commission  agreed to put into effect  the 
conclusions adopted  at the Amsterdam European  Council. To this effect,  they agreed  that  the 
European  Works  Council  and  the  Parental  Leave  Directives  should  be applied  to  the  United 
Kingdom by the adoption  of Article  100 ECT Directives. To this end, the Commission  should 
as  soon  as  possible  submit  to  the  Council  the  relevant  proposals.  Such  proposals  should, 
without  prejudice  to  the necessary technical  adjustments,  not  alter the material  content  of the 
above-mentioned Directives. 

Since the fact that Directive 94/45/EC is not applied in the United Kingdom negatively  affects 
the functioning  of the  common  market,  a Directive  is, therefore,  proposed,  based  on  Article 
100 of the EC Treaty. 

êi 

EXPLANATORY MEMORANDUM 

Introduction 

The aim of this proposal is to extend Council Directive 94/45/EC of 22 September  1994(*) on 
the  establishment  of  a  European  Works  Council  or  a  procedure  in  Community-scale 
undertakings and  Community-scale groups of undertakings for the purposes of informing and 
consulting employees to the United Kingdom of Great Britain and Northern Ireland. 

Council Directive  94/45/EC,  adopted  under  Article  2  (2)  of the  Agreement  on  social policy 
annexed  to  Protocol  14  on  social  policy  annexed  to  the  Treaty  establishing  the  European 
Community, does not apply to the United Kingdom of Great Britain and Northern Ireland. 

The  Amsterdam  European  Council  held  at  16  and  17  June  1997  noted  with  approval  the 
agreement  of the  Intergovernmental  Conference  to  incorporate  the  Social  Agreement  in  the 
Treaty. 

At  the  said  meeting  of  the  European  Council  the  Members  of the  European  Council  whose 
States  are party  to  the  Agreement  on  Social  Policy  annexed  to  Protocol  14 to  the Treaty  on 
European  Union  welcomed  wholeheartedly  the  decision  of the United  Kingdom  to  accede to 
the  social provisions  of the new  Treaty.  They noted  with great  satisfaction  the willingness of 
the United Kingdom to accept the Directives which have already been adopted  on the basis of 
that Agreement.  The European Council noted that a means had to be found,  in advance of the 
signature of the Amsterdam Treaty, to give legal effect  to these wishes. 

At the Council of 24 July  1997, the Council and the Commission  agreed to put  into effect  the 
conclusions adopted  at the Amsterdam European  Council. To this effect,  they agreed  that  the 
European  Works  Council  and  the  Parental  Leave  Directives  should  be  applied  to  the  United 
Kingdom by the adoption  of Article  100 ECT Directives. To this end, the Commission  should 
as  soon  as  possible  submit  to  the  Council  the  relevant  proposals.  Such  proposals  should, 
without prejudice to the necessary technical adjustments,  not alter the substance of the above-
mentioned Directives. 

Commission proposal 

i. Legal base 

Directive 94/45/EC  requires undertakings  and groups of undertakings  operating in more than 
one Member  State  to  inform  and  consult  the  representatives  of  their  employees  affected  by 
their decisions and aims, therefore,  to improve the dialogue between management  and labour, 
as referred  to in Article  1 of the Agreement  on Social Policy. It is obvious that the  extension 
of these provisions to the United Kingdom of Great Britain and Northern Ireland will facilitate 
attainment  of this objective.  Bringing the legislation  of the United  Kingdom  of Great  Britain 
and Northern  Ireland  into  line with  Council Directive  94/45/EC will, therefore,  have a direct 

1 OJ L 254 of 30.9.1994, p. 64 

3 

impact  on the functioning  of the common market.  In consequence, the appropriate legal base 
for the Commission's proposal is Article  100 of the Treaty. 

ii. Articles 

Article 1 

The purpose of this proposal  is to extend  Council Directive 94/45/EC to the United Kingdom 
of  Great  Britain  and  Northern  Ireland.  Without  prejudice  to  the  technical  adaptations  laid 
down by Article 2, the proposal  does not affect  the provisions of Council Directive  94/45/EC 
which will remain in force. 

The  consequences  of  its  application  affect  the  implementation  of  the  Directive  in  all  the 
Member  States  however.  The  Member  States  currently  covered  by  Council  Directive 
94/45/EC will also have to provide for the necessary provisions to comply with this Directive, 
notably as regards its transnational aspects. 

Article 2 

Article  (2)  increases  the  maximum  number  of  employee  representatives  on  the  special 
negotiating  body  from  17  to  18  members.  The  current  maximum  corresponds  to  the  14 
Member  States  which  are  party  to  the  Agreement  on  Social  Policy  plus  the  remaining  three 
Contracting  Parties  of  the  European  Economic  Area.  As  the  adoption  of  this  Directive  will 
bring the number of States covered by Directive 94/45/EC to  18, it is necessary to increase the 
existing  maximum  to  cater  for  Community-scale  undertakings  or  groups  of  undertakings 
which have at least one establishment  or one group undertaking in each of the  18 Contracting 
Parties of the European Economic Area. 

Article 3 

Along  the  same  lines  as  Article  13  of  Council  Directive  94/45/EC,  Article  3  allows 
undertakings  to  comply with the Directive  on a voluntary basis  by concluding  an  agreement. 
This proved  to  be  an extremely  successful  measure  and  should therefore  be granted  to  those 
undertakings  which,  through  the  extension  to  the  Kingdom  of  Great  Britain  and  Northern 
Ireland, will fall within the scope of Council Directive 94/45/EC. Undertakings  already  falling 
within the scope of Council Directive 94/45/EC will, however, not benefit  therefrom. 

Article 4 

It  is proposed  that the United  Kingdom  of Great  Britain  and Northern  Ireland,  as well  as all 
other Member  States, be granted  a period  of two years from  the adoption  of this Directive to 
comply with its provisions. 

H 

PROPOSAL  FOR  A 

COUNCIL  DIRECTIVE 

97/0238 (CNS) 

on  the  extension 
of  Council  Directive  94/45/EC  of  22  September  1994  on  the 
establishment  of  a  European  Works  Council  or  a  procedure  in  Community-scale 
undertakings  and  Community-scale  groups  of  undertakings  for  the  purposes  of 
informing  and  consulting  employees  to  the  Unitçd  Kingdom  of  Great  Britain  and 
Northern Ireland 

THE COUNCIL OF THE EUROPEAN  UNION, 

Having  regard  to  the  Treaty  establishing  the  European  Community,  and  in  particular  Article 
100 thereof, 

Having regard to the proposal from  the Commission^1) 

Having regard to the opinion of the European  Parliament,(2) 

Having regard to the opinion of the Economic and  Social CommitteeX') 

Whereas  the  Council,  acting  in  accordance  with  the  Agreement  on  social  policy  annexed  to 
Protocol  14 on social policy annexed to the Treaty establishing the European  Community, and 
in particular Article 2 (2) thereof,  adopted  on 22 September  1994 Council Directive  94/45/EC 
(4)  on  the  establishment  of  a  European  Works  Council  or  a  procedure  in  Community-scale 
undertakings  and  Community-scale  groups  of undertakings  for  the  purposes  of informing  and 
consulting  employees;  whereas,  therefore,  Council  Directive  94/45/EC  does  not  apply  to  the 
United Kingdom of Great Britain and Northern  Ireland; 

Whereas the Amsterdam  European  Council  held  on  16 and  17 June  1997 noted  with  approval 
the  agreement  of the  Intergovernmental  Conference  to  incorporate  the  Agreement  on  Social 
Policy in the EC Treaty and also noted that  a means should be found  to give legal effect  to the 

OJL  254 of 30.9.1994, p. 64 

5" 

wish  of  the  United  Kingdom  of  Great  Britain  and  Northern  Ireland  to  accept  the  directives 
which  have  already  been  adopted  on  the  basis  of  that  Agreement  before  the  signature  of  the 
Amsterdam  Treaty,  whereas  the  present  directive  seeks  to  achieve  this  aim  by  applying 
Council  Directive  94/45/EC  to  the  United  Kingdom  of Great  Britain  and  Northern  Ireland. 

Whereas  the  fact  that  Council  Directive  94/45/EC  is  not  applicable  in  the  United  Kingdom  of 
Great  Britain  and  Northern  Ireland  directly  affects  the  functioning  of  the  common  market, 
whereas  its  implementation  in  all  the  Member  States  will  improve  the  functioning  of  the 
common  market. 

Whereas  Council  Directive  94/45/EC  provides  for  a  maximum  of  17 members  of  the  special 
negotiating  body;  whereas  such  a  number  corresponds  to  the  14  Member  States  which  are 
party  to  the  Agreement  on  Social  Policy  plus  the  three  remaining  Contracting  Parties  of  the 
European  Economic  Area;  whereas  the  adoption  of  this  Directive  will  bring  the  total  number 
of  States  covered  by  the  Directive  94/45/EC  to  18;  whereas  therefore  the  above  mentioned 
maximum  should  be  increased  to  18 so  that  each  Member  State  in which  the  Community-scale 
undertaking  has  one  or  more  establishments  or  in  which  the  Community-scale  group  of 
undertaking  has  the  controlling  undertaking  or  one  or  more  controlled  undertakings  is 
represented; 

to 
Whereas  Council  Directive  94/45/EC  provides  for  special  treatment  to  be  accorded 
Community-scale  undertakings  and  groups  of  undertakings  in  which  there  is,  at  22  September 
1996 an  agreement,  covering  the  entire  workforce  providing  for  the  transnational  information 
and  consultation  of  employees;  whereas,  accordingly,  Community-scale  undertakings  and 
groups  of  undertakings  falling  within  the  scope  of  Council  Directive  94/45/EC  solely  as  a 
result  of  its  application  to  the  United  Kingdom  of  Great  Britain  and  Northern  Ireland,  should 
be granted  similar  treatment; 

Whereas  the  adoption  of this Directive  will  make  Directive  94/45/EC  applicable  in  all  Member 
States  including the  United  Kingdom  of Great  Britain  and  Nothern  Ireland 

to  bring  into  force 

Whereas  Member  States  were  required 
administrative  provisions  to  comply  with  Council  Directive  94/45/EC  no  later  than  two  years 
after  the  adoption  of  the  latter  Directive;  whereas  a  similar  period  should  be  granted  to  the 
United  Kingdom  of Great  Britain  and  Northern  Ireland,  as well  as to  the  other  Member  States 
of  the  European  Union,  to  bring  into  force  the  necessary  provisions  to  comply  with  this 
Directive; 

the  laws,  regulations  and  ^ 

HAS ADOPTED THIS DIRECTIVE : 

Article 1 

Without  prejudice  to  article 3, Directive  94/45/EC  shall  apply  to  the  United  Kingdom  of  Great 
Britain  and  Northern  Ireland. 

e 

I  In Article 5(2) (b) of  Directive 94/45/EC "17" is hereby replaced by  18. 

Article 2 

Article 3 

The obligations resulting from  this Directive  shall not  apply to Community-scale  undertakings 
or  Community-scale  groups  of undertakings,  which,  solely  by virtue  of  Article  1, fall  within 
the  scope  of  this  Directive,  provided  that,  on  the  date  laid  down  in  Article  4  (1)  for  the 
implementation  of  this  Directive  or  the  date  of  its  transposition  in  the  Member  State  in 
question  where  this  is  earlier  than  the  above-mentioned  date,  there  is  already  an  agreement 
covering the entire workforce  providing  for  the transnational  information  and  consultation  of 
employees 

When  the  agreements  referred  to  in  the  first  subparagraph  expire,  the  parties  to  those 
agreements  may  decide jointly  to  renew  them.  Where  this is  not  the  case,  the  provisions  of 
Council Directive 94/45/EC as amended by this directive shall apply. 

Article 4 

1.  Member  States  shall  bring  into  force  the  laws,  regulations  and  administrative  provisions 
necessary to comply with this Directive no later than  ...(2 years after  the adoption)  or shall 
ensure  by  that  date  at  the  latest  that  management  and  labour  introduce  the  required 
provisions  by  way  of  agreement,  the  Member  States  being  obliged  to  take  all  necessary 
steps  enabling  them  at  all  times  to  guarantee  the  results  imposed  by  this  Directive.  They 
shall forthwith  inform the Commission thereof. 

2  When Member states adopt  these measures,  they shall  contain  a reference  to  this  Directive 
or shall be accompanied  by such reference  on the occasion of their official  publication.  The 
methods of making such reference  shall be laid down by Member States 

This Directive is addressed to the Member States. 

Article 5 

¥ 

IMPACT ASSESSMENT FORM 

THE IMPACT OF THE PROPOSAL FOR BUSINESS 

with special  reference to small and medium-sized enterprises (SMEs) 

Title of the proposal: 

Proposal  for  a  Council  Directive  on  the  extension  of  Council  Directive 
94/45/EC of 22 September  1994, on  the  establishment  of a European  Works 
Council  or a procedure  in  Community-scale  undertakings  and  Community-
scale  groups  of  undertakings  for  the  purposes  of  informing  and  consulting 
employees, to the United Kingdom of Great Britain and Northern Ireland 

The proposal: 

1.  Taken account of the principle of subsidiarity, why is Community legislation 
necessary in this area and what are its main aims? 

The aim of this proposal  is to  extend  Council  Directive  94/45/EC  of 22  September  1994 on 
the  establishment  of  a  European  Works  Council  or  a  procedure  in  Community-scale 
undertakings and  Community-scale  groups of undertakings for  the purposes  of informing  and 
consulting employees to the United Kingdom of Great Britain and Northern Ireland. 

Directive 94/45/EC was adopted  on 22 September  1994 under Article 2 (2) of the Agreement 
on social policy annexed to Protocol  14 on social policy annexed to the Treaty establishing the 
European Community. It does not apply to the United Kingdom of Great Britain and Northern 
Ireland. 

Since the fact  that Directive 94/45/EC is not  applied in the United Kingdom  negatively  affects 
the  functioning  of the  common  market,  a Directive  is, therefore,  proposed,  based  on  Article 
100 of the EC Treaty. 

2.  Who will be affected  by the proposal? 

Directive  94/45/EC  applies  to:  (a)  undertakings  with  at  least  1000  employees  in  all  the 
Member  States  and  with  at  least  two  establishments  in  different  Member  States,  each 
employing at least  150 workers; and (b) groups of undertakings with at least  1000 employees 
in all the Member  States and with at least two group undertakings in different  Member  States 
which  each  employ  at  least  150  employees.  Small  and  medium-sized  undertakings  are  not 
covered. 

The proposal applies to all sectors of business throughout the European Union. 

This proposal affects  companies in the United Kingdom as well as in the other Member  States 
which, taken into account their total numbers of workers in all the Member  States, fall within 

g 

the scope of this proposal, but  did not fall within the scope of Directive 94/45/EC  as adopted 
on 22 September  1994. 

3.  What will business have to do to comply with the proposal. 

Undertakings  and  groups  or  undertakings  covered  by this  proposal  must  establish  European 
Works Council or set up some other procedure for  informing  and consulting their employees, 
as set out in Directive 94/45/EC. 

4.  What economic effects  is the proposal likely to have? 

As  for  Directive  94/45/EC,  the  cost  is  depending  on  the  size  of  the  company  and  on  the 
outcome of the negotiations between  management  and labour.  In most cases the actual wage 
cost increase per worker is likely to be less than  10 ECU per year. 

For companies that were already covered by the Directive 94/45/EC, the cost of this proposal 
is limited to the inclusion  of employees in the United Kingdom  in the european  workscouncil. 
This is a theoretical  extra  cost,  since nearly all companies have anticipated  this proposal  on a 
voluntary basis. 

This proposal aims at improving industrial relations and worker involvement throughout all the 
Member  States,  including  United  Kingdom.  This  might  lead  to  an  increase  in  productivity 
which will more than compensate for the marginal cost increase. 

5.  Does  the  proposal  contain  measures  to  take  account  of  the  specific  situation  of 
small and medium-sized firms (reduced or different  requirements, etc.)? 

This proposal does not apply to small and medium-sized business. 

* 

SUMMARY 

The  aim of this proposal  is to  extend  Council  Directive  96/34/EC  of 3 June  1996, on 
the  framework  agreement  on  parental  leave  concluded  by  UNICE,  CEEP  and  the 
ETUC, to the United Kingdom of Great Britain and Northern Ireland. 

Directive  96/34/EC  was  adopted  on  3 June  1996  on  the  basis  of  Article  4(2)  of the 
Agreement  on  Social  Policy  annexed  to  Protocol  (No.  14) to  the  Treaty  establishing 
the European  Community. It does not currently apply to the United Kingdom of Great 
Britain and Northern Ireland. 

The European  Council meeting held at Amsterdam on  16-17 June noted with approval 
the  agreement  of  the  Intergovernmental  Conference  to  incorporate  the  Social 
Agreement in the EC Treaty. 

At the said European  Council the Members of the European  Council  whose States are 
party  to  the  Agreement  on  Social  Policy  annexed  to  Protocol  14  to  the  Treaty  on 
European  Union  welcomed  wholeheartedly  the  decision  of  the  United  Kingdom  to 
accede to  the  social  provisions  of the new Treaty.  They  noted  with  great  satisfaction 
the  willingness  of  the  United  Kingdom  to  accept  the  Directives  which  have  already 
been  adopted  on  the  basis  of  that  Agreement.  The  European  Council  noted  that  a 
means had  to  be found,  in advance of the signature  of the Amsterdam  Treaty, to give 
legal effect  to these wishes. 

At  the  Council  of  24  July  1997,  the  Council  and  the  Commission  agreed  to  put  into 
effect  the  conclusions  adopted  at  the  Amsterdam  European  Council.  To  this  effect, 
they  agreed  that  the  European  Works  Council  and  the  Parental  Leave  Directives 
should  be  applied  to  the  United  Kingdom  by  the  adoption  of  Article  100  ECT 
Directives.  To  this  end,  the  Commission  should  as  soon  as  possible  submit  to  the 
Council  the  relevant  proposals.  Such  proposals  should  without  prejudice  to  the 
necessary  technical  adjustments,  not  alter  the  substance  of  the  above-mentioned 
Directives 

Since the fact  that Directive 96/34/EC is not applied in the United Kingdom negatively 
affects  the  functioning  of  the  common  market,  a  Directive  is,  therefore,  proposed, 
based on Article 100 of the EC Treaty. 

t/O 

EXPLANATORY  MEMORANDUM 

Introduction 

The  aim of this proposal  is to  extend  Council Directive  96/34/EC  of  3 June  1996 on 
the  framework  agreement  on  parental  leave  concluded  by  UNICE,  CEEP  and  the 
ETUC to the United Kingdom of Great Britain and Northern Ireland. 

Council Directive 96/34/EC, adopted on the basis of Article 4(2) of the Agreement on 
Social  Policy  annexed  to  Protocol  (No  14) to  the  Treaty  establishing  the  European 
Community,  does  not  apply  to  the  United  Kingdom  of  Great  Britain  and  Northern 
Ireland. 

The  Amsterdam  European  Council  held  at  16-17 June  1997 noted  with  approval  the 
agreement  of the  Intergovernmental  Conference  to  incorporate  the  Social  Agreement 
in the Treaty. 

At the  said  meeting  of the  European  Council  the  Members  of the  European  Council 
whose  States are  party to  the  Agreement  on  Social Policy  annexed  to  Protocol  14 to 
the  Treaty  on  European  Union  welcomed  wholeheartedly  the  decision  of  the  United 
Kingdom to accede to the social provisions of the new Treaty.  They noted with great 
satisfaction  the willingness of the United Kingdom to accept the Directives which have 
already been  adopted  on  the  basis  of that  Agreement.  The European  Council  noted, 
also,  that  a  means  had  to  be  found,  in  advance  of  the  signature  of  the  Amsterdam 
Treaty, to give legal effect  to these wishes. 

At  the  Council  of  24  July  1997,  the  Council  and  the  Commission  agreed  to  put  into 
effect  the  conclusions  adopted  at  the  Amsterdam  European  Council.  To  this  effect, 
they  agreed  that  the  European  Works  Council  and  the  Parental  Leave  Directives 
should  be  applied  to  the  United  Kingdom  by  the  adoption  of  Article  100  ECT 
Directives.  To  this  end,  the  Commission  should  as  soon  as  possible  submit  to  the 
Council  the  relevant  proposals.  Such  proposals  should,  without  prejudice  to  the 
necessary  technical  adjustments,  not  alter  the  substance  of  the  above-mentioned 
Directives. 

The Commission's Proposal 

i. Legal base 
Directive  96/34/EC,  which  implements  the  framework  agreement  on  parental  leave, 
contributes in particular to the objective of improving working and living conditions, as 
referred  to  in  Article  1 of  the  Agreement  on  Social  Policy,  and  the  reconciliation  of 
family  and  working  life.  It  is  obvious  that  the  extension  of  these  provisions  to  the 
United Kingdom of Great  Britain  and Northern  Ireland will lead to  a better  realisation 
of these objectives,  ensuring that they will be pursued  by all Member  States. Bringing 
the legislation  of the  United  Kingdom  of Great  Britain  and  Northern  Ireland  into line 
with  Council  Directive  96/34/EC  will,  therefore,  have  a  direct  impact  on  the 
functioning  of the common market.  In consequence the appropriate  legal base for  the 
Commission's proposal is Article  100 of the Treaty. 

AA 

ii. Articles 
Article I 
The  application  of  Directive  96/34/EC  to  the  United  Kingdom  may  be  effected  by 
means of a Directive  addressed  to  the Member  States.  No  substantive  amendment  of 
Directive 96/34/EC will be necessary, the only amendment being the purely formal one 
of the date of implementation in the United Kingdom. 

Article 2 

With  regard  to  implementation,  the  United  Kingdom  should  be  allowed  the  same 
length of time after  adoption  of the present Directive  as was permitted for the other 
Member States after the adoption of Directive 96/34/EC. 

/#L~ 

PROPOSAL FOR A COUNCIL DIRECTIVE 
extending Council  Directive 96/34/EC of 3 June  1996, on the framework  agreement 
on parental leave concluded by UNICE, CEEP and the ETUC, to the United Kingdom 
of Great Britain and Northern Ireland. 

9 7 0 2 39  ( C N S) 

THE COUNCIL OF THE EUROPEAN UNION, 

Having regard  to the Treaty establishing the European  Community,  and  in particular 
Article  100 thereof, 

Having regard to the proposal from the Commission, 

Having regard to the opinion of the European Parliament,2 

Having regard to the opinion of the Economic and Social Committee, 

Whereas  the  Council,  acting  in  accordance  with  the  Agreement  on  Social  Policy 
annexed  to  Protocol  14  on  social  policy  annexed  to  the  Treaty  establishing  the 
European  Community, and in particular Article 4(2) thereof, adopted  on 3 June  1996 
Council  Directive  96/34/EC,  on  the  framework  agreement  on  parental  leave 
concluded  by UNICE, CEEP and ETUC  ; whereas that  Directive  does not,  therefore, 
apply to the United Kingdom of Great Britain and Northern Ireland; 

Whereas  the  Amsterdam  European  Council  held  at  16-17  June  1997,  noted  with 
approval  the  agreement  of  the  Intergovernmental  Conference  to  incorporate  the 
Agreement  on  social  policy  in the  EC Treaty  and  also  noted  that  a means  had  to be 
found  to  give  legal  effect  to  the  wish  of  the  United  Kingdom  of  Great  Britain  and 
Northern Ireland to accept the directives which have already been adopted on the basis 
of that Agreement before the signature of the Amsterdam Treaty;  whereas the present 
directive  seeks  to  achieve  this  aim  by  applying  Council  Directive  96/34/EC  to  the 
United Kingdom of Great Britain and Northern Ireland: 

Whereas  the  fact  that  Council  Directive  96/34/EC  is  not  applicable  in  the  United 
Kingdom of Great Britain and Northern Ireland  directly  affects  the functioning  of the 
common  market;  whereas  the  implementation  of  the  framework  agreement,  and  in 
particular  the  principle  of  reconciliation  of  parental  and  professional  responsibilities 
for  working  parents,  in  all  the  Member  States  will  improve  the  functioning  of  the 
common market; 

Whereas  the  implementation  of  the  framework  agreement  aims,  in  particular,  at 
achieving  the  objective  of  equal  treatment  between  men  and  women  with  regard  to 

OJL145/4  of  19.6.96. 

A", 

labour opportunities  and treatment  at work, and  reconciliation  of working and  family 
life, 

Whereas the adoption of this Directive will make Directive 96/34/EC applicable in the 
United  Kingdom  of Great  Britain  and Nothern  Ireland, and whereas  from  the date of 
entry  into  force  of  this  Directive  the  term  "Member  States"  in  Directive  96/34/EC 
should  be construed  as  including  the  United  Kingdom  of  Great  Britain  and  Nothern 
Ireland. 

HAS ADOPTED THIS DIRECTIVE : 

Article 1 

Without  prejudice  to  Article  2,  Directive  96/34/EC  on  the  framework  agreement  on 
parental  leave concluded  by UNICE, CEEP and the ETUC, shall  apply  to the United 
Kingdom of Great Britain and Northern Ireland. 

Article 2 

1. 

In Article 2 of Directive 96/34/EC, the following paragraph  1 a is inserted: 

"As  regards  the  United  Kingdom  of  Great  Britain  and  Northern  Ireland,  the 
date of 3 June  1998 in Article 2 of Directive 96/34/EC shall be replaced by paragraph 
1 shall be 

[2 years after adoption]." 

This Directive is addressed to the Member States. 

Article 3 

Done at... 

Ai( 

IMITU'V  VVMVSAUW  VWKM 

With special reference to small and medium-sized 
enterprises (SMEs) 

TITLE OF PROPOSAL:  Proposal for a Council Directive  extending Council 

Directive 96/34 of 3 June 1996 on the framework 
agreement on parental leave concluded by  UNICE, 
CEEP and the ETUC to the United Kingdom of Great 
Britain and Northern Ireland 

THE PROPOSAL: 

1. 

Taking  account  of  the  principle  of  subsidiarity,  why  is  Community 
legislation necessary in this area and what are its main aims? 

The  aim  of  this  Directive  is  to  extend  to  the  United  Kingdom  Directive 

96/34/EC. 

THE IMPACT ON BUSINESS: 

2.  Who will be affected  by the proposal? 

All enterprises  and all workers may be affected  by the framework  agreement, 
irrespective of the sector or size of the enterprise concerned. 

3.  What will business have to do to comply with the proposal? 

The enterprises have several options to make up for the absence of workers on 
parental leave, the main being as follows: 

- hiring of replacements; 

-sharing of the work between colleagues; 

- postponing work until the persons concerned return to work. 

4.  What economic effects  is the proposal likely to have? 

Introduction  of  parental  leave  will  also  contribute  to  achieving  the  second 
priority set in Essen by the European Council - the introduction of new flexible 
ways  of  organizing  work.  Such  flexibility  should  cater  for  the  needs  of 
enterprises which, in the face of international  competition,  must increase their 
competitiveness  and  for  the  interests  of  workers  by  enabling  them  to  adjust 
their working time to their personal  needs,  the agreement  between  the social 
partners  on  this  matter,  which  has  been  negotiated  between  employers  and 

A< 

workers, is the most suitable instrument for reconciling the interests of the two 
parties. 

The  job  guarantee  accompanying  parental  leave  should  normally  underpin 
continuity  in the  labour  market  - whereas  hitherto  gainful  employment  had  to 
be interrupted  - to the benefit  of workers  and  enterprises  alike.  Workers may 
be  spared  some  of the  cost  of returning  to  working  life  and  can  maintain  the 
benefits  of  their  experience  and  their  seniority  with  their  employers.  The 
employers keep the labour force which they have trained and, depending on the 
way  in  which  they  replace  workers  on  leave,  do  not  have  to  commit 
expenditure for recruitment or training of new personnel. 

5. 

does  the  proposal  contain  measures  to  take  account  of  the  specific 
situation  of  small  and  medium-sized  firms  (reduced  or  different 
requirements, etc.)? 

Yes.  See paragraphs  17 to 21 of the Explanatory Memorandum  of the original 
proposal. 

M 

ISSN 0254-1475 

COM(97) 457 final 

DOCUMENTS 

EN 

04  05  06 

Catalogue  number  :  CB-CO-97-471-EN-C 

ISBN  92-78-24643-3 

Office  for Official  Publications of the European Communities 

L-2985 Luxembourg 

4¥