S.L. 452.86 Art. 1Title and scope.

(1) The title of these regulations is the European Works

Council Regulations.

(2) The purpose of these regulations is to improve the right of employees in Community-scale undertakings and Community-scale groups of undertakings, to be informed and consulted through the establishment of a European Works Council or equivalent arrangements to cater for the information and consultation of employees in every such undertaking and group of undertakings and to implement the provisions of EU Council Directive 94/45/ EC.

(3) These regulations shall only apply to:

(a) community-scale undertakings or community-scale groups of undertakings in which, on the 22nd September 1996, there had already been an agreement covering the entire workforce, providing for the transnational information and consultation of employees, or where such agreements are adjusted because of changes in the structure of the undertakings or groups of undertakings; and

(b) agreements concluded pursuant to regulation 7 which have been signed or revised between the 5th of June 2009 and the 5th of June 2011:

Provided that in so far as paragraph (b) is concerned, the national law applicable when the agreement is signed or revised shall continue to apply to the undertakings or groups of undertakings concerned: Provided further that in the case of the agreements mentioned in both paragraphs (a) and (b), upon the expiry of the said agreements, the parties to those agreements may decide jointly to renew or revise such agreements and these regulations shall apply. In the case that these agreements are neither renewed or revised, the provisions of the European Works Council (Further

Provisions) Regulations shall automatically apply.

(4) Without prejudice to what is stated in subregulation (3), the European Works Council (Further Provisions) Regulations shall be the applicable law for all arrangements aiming to set up a European Works Council or any procedure for the information and consultation of employees in Community-scale undertakings or Community-scale groups of undertakings, as provided for by those regulations, which are effected for the first time on the 6th of June, 2011 and after the 6th of June, 2011. regulation 3(2), the representative agent or the management of the establishment; "Community-scale group of undertakings" means a group of undertakings with the following characteristics: - at least a total of 1000 employees employed in Member States; - at least two group undertakings in different Member States, and - at least one group undertaking with at least 150 employees in any one Member State and at least one other group undertaking with at least 150 employees in another Member State;

"Community-scale undertaking" means any undertaking with at least 1000 employees, within Member States and which also has at least 150 employees in each of at least two Member States; "consultation" means the exchange of views and establishment of dialogue between employees’ representatives and central management or any more appropriate level of management; "controlling undertaking" means an undertaking which can exercise a dominant influence over another undertaking hereinafter referred to as the "controlled undertaking" by virtue of, amongst other reasons, ownership, financial participation or the rules which govern it; "employees’ representative" shall mean either the recognised union representative or, in case of non-unionised employees, the representative or representatives duly elected from amongst the employees; "establishment", in relation to an undertaking, means a division of the undertaking physically separated from other parts of the undertaking; "European Works Council" means the council established in accordance with -

(a) the provisions of regulation 7 or regulation 8 and the Schedule, with the purpose of informing and consulting employees;

(b) where appropriate, the provisions of the law or practice of a Member State other than Malta which are designed to give effect to article 6 and article 7 of the Annex to EU Council Directive 94/45/EC;

"group of undertakings" means a controlling undertaking and its controlled undertakings, and ‘group undertaking’ means any undertaking of a group of undertakings; "Member State" means a member state of the European Union, of the European Economic Area or any other state as the Minister may Council or other equivalent procedure for informing and consulting employees;

"undertaking" means any form of economic activity.

(2) Subject to the provisions of subregulation (1), terms and expressions used in these regulations shall, unless the context otherwise requires, have the meaning assigned to them in the Act.

(3) The prescribed thresholds to determine whether an undertaking is a community-scale undertaking or a community scale group of undertakings, shall be based on the number of employees employed by the undertaking or group of undertakings which, for the purpose of these regulations, shall be calculated as follows:

(a) in the case of employees in Malta, on the average number of employees who were employed during the two year period ending on the last day of the month preceding the month in which a request pursuant to regulation 4 was made, whether such employees are on a definite or indefinite contract, and including part-time employees whose part-time employment is their principal employment in respect of which social security contributions are payable in respect of the Social Security Act;

(b) in the case of employees in other member states, by the average number of employees employed in a two year period as referred to in the preceding paragraph calculated according to the laws in force and, or, practice in that state giving effect to EU Council Directive 94/45/EC.

(4) The ability of an undertaking to exercise a dominant influence shall be presumed, unless the contrary is proved, when in relation to another undertaking, it directly or indirectly:

(a) holds a majority of that undertaking’s subscribed capital; or

(b) controls a majority of the votes attached to that undertaking’s issued share capital; or

(c) can appoint more than half of the members of that undertaking’s administrative, management or supervisory body.

(5) For the purposes of subregulation (4), a controlling undertaking’s rights as regards voting and appointment shall include the rights of any of its controlled undertakings and those of any person or body acting in his or its own name but on behalf of the controlling undertaking or of any other of its controlled undertakings.

(6) Notwithstanding what is stated in these regulations, an 1989, on the control of concentrations between undertakings.

(7) A dominant influence shall not be presumed to be exercised solely by virtue of the fact that an office holder is exercising his functions, according to the law of the Member State in which the undertaking is situated, which relates to liquidation, winding up, insolvency, cessation of payments, composition of creditors or analogous proceedings.

(8) The law applicable in order to determine whether an undertaking is a controlling undertaking shall be the law of the Member State which governs that undertaking. Where the law governing an undertaking is not that of a Member State, the law applicable shall be the law of the Member State within whose territory the representative of the undertaking or, in the absence of such a representative, the central management of the group undertaking which employs the highest number of employees in any one Member State, is situated.

(9) Where, in the case of a conflict of laws in the application of subregulation (4), two or more undertakings from a group, whether situated in Malta or in any member state, satisfy one or more of the criteria laid down in that subregulation, the organisation which satisfies the criterion laid down in subregulation (4)(c) shall be regarded as the controlling undertaking, without prejudice to proof that another undertaking is able to exercise a dominant influence.