Works Council Requirements
Under the Information and Consultation of Employees Regulations 2004 (amended 2020), employers with 50+ employees must inform and consult employee representatives when requested by at least 2% of employees (minimum 15). Since April 2020, employers can also be required to set up arrangements proactively.
Last updated: February 2025
50+ employees
Employer size threshold
2% (min 15)
Employee request threshold
Up to £75,000
Penalty for non-compliance
What the Law Says
The Information and Consultation of Employees Regulations 2004 (implementing EU Directive 2002/14, retained in UK law) apply to employers with 50+ employees. Since the 2020 amendment, the threshold for a valid employee request was lowered to 2% (minimum 15 employees). Consultation covers business developments, employment changes, and decisions likely to lead to substantial changes in work organisation.
Your Obligations as an Employer
- Respond to valid employee requests to establish information and consultation arrangements
- Negotiate an agreement within 6 months of a valid request
- Inform and consult on business developments, employment situation, and organisational changes
- Hold elections for employee representatives if no pre-existing arrangement exists
What to Include in Contracts
Contracts do not typically reference works councils directly, but should include a clause acknowledging the employer's information and consultation obligations and the employee's right to stand as or vote for employee representatives.
View related contract templateCommon Mistakes
- Ignoring employee requests to set up consultation arrangements
- Consulting only on redundancies rather than broader business matters
- Not counting all UK employees when calculating the 50-employee threshold
FAQ
Are works councils the same as trade unions?
No. Works councils (information and consultation arrangements) cover all employees regardless of union membership and focus on information sharing and consultation. Trade unions engage in collective bargaining on terms and conditions. Both can coexist, and employers may need to engage with both separately.
What happens if an employer ignores a valid request?
Employees can complain to the Central Arbitration Committee (CAC) which can order the employer to establish arrangements. The Employment Appeal Tribunal can impose penalties of up to £75,000 for non-compliance with CAC orders.
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Get Started FreeThis is guidance for UK employers, not legal advice. For complex employment law matters, consult a qualified employment solicitor or ACAS.
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