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entirely void without replacement if they were not substituted with more precise mandatory terms in national legislation in aziz v caixa d estalvis de catalunya following the 2008 financial crisis the european court of justice advised that even terms regarding repossession of homes in spain had to be assessed for fairness by national courts 293 in kušionová v smart capital a s the court of justice held that consumer law was to be interpreted in the light of fundamental rights including the right to housing if a home could be repossessed 294 because consumer law operates through directives national courts have the final say on applying the general principles set out by the court of justice s case law unfair commercial practices directive 2005 29 ec consumer rights directive 2011 83 eu payment services directive 2007 64 ec late payments directive 2011 7 eu labour rights edit v t e european labour rights tfeu arts 151 153 cfreu arts 12 15 20 34 echr arts 4 6 9 11 employment information directive 1991 working time directive 2003 institutions for occupational retirement provision directive 2003 pregnant workers directive 1992 parental leave directive 2010 safety and health at work directive 1989 posted workers directive 1996 part time work directive 1997 fixed term work directive 1999 temporary agency work directive 2008 equality framework directive 2000 race equality directive 2000 equal treatment directive 2006 wilson and palmer v united kingdom 2002 echr 552 demir and baykara v turkey 2008 echr 1345 information and consultation directive 2002 european works council directive 2009 employee involvement directive 2001 european company regulation 2001 transfers of undertakings directive 2001 collective redundancies directive 1998 insolvency protection directive 2008 see eu law and labour law main articles european labour law ilo conventions uk labour law german labour law french labour law and united states labor law while free movement of workers was central to the first european economic community agreement the development of european labour law has been a gradual process originally the ohlin report of 1956 recommended that labour standards did not need to be harmonised although a general principle of anti discrimination between men and women was included in the early treaties increasingly the absence of labour rights was seen as inadequate given the capacity for a race to the bottom in international trade if corporations can shift jobs and production to countries with low wages today the eu is required under tfeu article 147 to contribute to a high level of employment by encouraging cooperation between member states 295 this has not resulted in legislation which usually requires taxation and fiscal stimulus for significant change while the european central bank s monetary policy has been acutely controversial during the european debt crisis under article 153 1 the eu is able to use the ordinary legislation procedure on a list of labour law fields this notably excludes wage regulation and collective bargaining 296 generally four main fields of eu regulation of labour rights touch 1 individual labour rights 2 anti discrimination regulations 3 rights to information consultation and participation at work and 4 rights to job security in virtually all cases the eu follows the principle that member states can always create rights more beneficial to workers this is because the fundamental principle of labour law is that employees unequal bargaining power justifies substitution of rules in property and contract with positive social rights so that people may earn a living to fully participate in a democratic society 297 the eu s competences generally follow principles codified in the community charter of the fundamental social rights of workers 1989 298 introduced in the social chapter of the treaty of maastricht initially the uk had opted out because of opposition by the conservative party but was acceded to when the labour party won the 1997 general election in the treaty of amsterdam the european social charter 1961 art 2 1 requires the working week to be progressively reduced with increase of productivity 299 the working time directive 2003 requires 28 paid holidays a year 300 with two day weekends most people in the eu work two thirds of the year or less 301 the first group of directives create a range of individual rights in eu employment relationships the employment information directive 1991 requires that every employee however defined by member state law has the right to a written statement of their employment contract while there is no wage regulation the institutions for occupational retirement provision directive 2003 requires that pension benefits are protected through a national insurance fund that information is provided to beneficiaries and minimum standards of governance are observed 302 most member states go far beyond these requirements particularly by requiring a vote for employees in who manages their money 303 reflecting basic standards in the universal declaration of human rights and ilo conventions 304 the working time directive 2003 requires a minimum of 4 weeks totalling 28 days paid holidays each year 305 a minimum of 20 minute paid rest breaks for 6 hour work shifts limits on night work or time spent on dangerous work 306 and a maximum 48 hour working week unless a worker individually consents 307 the parental leave directive 2010 creates a bare minimum of 4 months of unpaid leave for parents mothers fathers or legal guardians to care for children before they turn 8 years old and the pregnant workers directive 1992 creates a right for mothers to a minimum of 14 weeks paid leave to care for children 308 finally the safety and health at work directive 1989 requires basic requirements to prevent and insure against workplace risks with employee consultation and participation 309 and this is complemented by specialised directives ranging from work equipment to dangerous industries 310 in almost all cases all member states go significantly beyond this minimum the objective of transnational regulation is therefore to progressively raise the minimum floor in line with economic development second equality was affirmed by the court of justice in kücükdeveci v swedex gmbh co kg 311 to be a general principle of eu law further to this the part time work directive 1997 fixed term work directive 1999 and temporary agency work directive 2008 generally require that people who do not have ordinary full time permanent contracts are treated no less favourably than their colleagues however the scope of the protected worker is left to member state law and the tawd 2008 only applies to basic working conditions mostly pay working hours and participation rights and enabled member states to have a qualifying period the race equality directive 2000 equality framework directive 2000 and equal treatment directive 2006 prohibit discrimination based on sexual orientation disability religion or belief age race and gender as well as direct discrimination there is a prohibition on indirect discrimination where employers apply a neutral rule to everybody but this has a disproportionate impact on the protected group the rules are not consolidated and on gender pay potentially limited in not enabling a hypothetical comparator or comparators in outsourced business equality rules do not yet apply to child care rights which only give women substantial time off and consequently hinder equality in men and women caring for children after birth and pursuing their careers a majority of eu countries have legislation such the codetermination act 1976 or the statute for the école normale supérieure in paris which protect employees right to vote for a corporation s management this is reflected in the employee involvement directive 2001 for european companies third the eu is formally not enabled to legislate on collective bargaining although the eu with all member states is bound by the jurisprudence of the european court of human rights on freedom of association 312 in wilson and palmer v united kingdom 313 the court held that any detriment for membership of a trade union was incompatible with article 11 and in demir and baykara v turkey 314 the court held the right to bargain collectively with the employer has in principle become one of the essential elements of article 11 315 this approach which includes affirmation of the fundamental right to strike in all democratic member states 316 has been seen as lying in tension with some of the court of justice s previous case law notably itwf v viking line abp 317 and laval un partneri ltd v svenska byggnadsarbetareforbundet 318 these controversial decisions quickly disapproved by legislative measures 319 suggested the fundamental right of workers to take collective action was subordinate to business freedom to establish and provide services more positively the information and consultation directive 2002 requires that workplaces with over 20 or 50 staff have the right to set up elected work councils with a range of binding rights the european works council directive 2009 enables work councils transnationally and the employee involvement directive 2001 requires representation of workers on company boards in some european companies if a company transforms from a member state corporation to incorporate under the european company regulation 2001 employees are entitled to no less favourable representation than under the member state s existing board participation laws this is practically important as a majority of eu member states require employee representation on company boards fourth minimum job security rights are provided by three directives the collective redundancies directive 1998 specifies that minimum periods of notice and consultation occur if more than a set number of jobs in a workplace are at risk the transfers of undertakings directive 2001 require that staff retain all contractual rights unless there is an independent economic technical or organisational reason if their workplace is sold from one company to another last the insolvency protection directive 2008 requires that employees wage claims are protected in case their employer falls insolvent this last directive gave rise to francovich v italy where the court of justice affirmed that member states which fail to implement the minimum standards in eu directives are liable to pay compensation to employees who should have rights under them 320 companies and investment edit v t e company law sources first company law directive 2009 101 ec second company law directive 2012 30 eu third company law directive 2011 35 eu fourth company law directive 78 660 eec draft fifth company law directive sixth company law directive 82 891 eec seventh company law directive 83 349 eec eighth company law directive 2006 43 ec draft ninth company law directive tenth company law directive 2005 56 ec eleventh company law directive 89 666 eec twelfth company law directive 2009 102 ec takeover directive 2004 25 ec draft fourteenth company law directive market abuse directive 2003 6 ec transparency of listed companies directive 2004 109 ec shareholder rights directive 2007 36 ec merger tax directive 2009 133 ec see eu law and european corporate law main articles european company law uk company law german corporate law and united states corporate law like labour regulation european company law is not a complete system and there is no such thing as a self standing european corporation instead a series of directives require minimum standards usually protecting investors to be implemented in national corporate laws the largest in europe remain member state incorporations such as the uk plc the german ag or the french sa there is however a european company or societas europaea abbreviated to se created by the statute for a european company regulation 2001 321 this sets out basic provisions on the method of registration e g by merger or reincorporation of an existing company but then states that wherever the se has its registered office the law of that member state supplements the rules of the statute 322 the employee involvement directive 2001 also adds that when an se is incorporated employees have the default right to retain all existing representation on the board of directors that they have unless the negotiate by collective agreement a different or better plan than is provided for in existing member state law 323 other than this most important standards in a typical company law are left to member state law so long as they comply with further minimum requirements in the company law directives duties owed by the board of directors to the company and its stakeholders 324 or the right to bring derivative claims to vindicate constitutional rights are not generally regulated by eu law nor are rights of pre emption to buy shares nor rights of any party regarding claims by tort contract or piercing the corporate veil to hold directors and shareholders accountable 325 however directives do require minimum rights on company formation capital maintenance accounting and audit market regulation board neutrality in a takeover bid 326 rules on mergers and management of cross border insolvency 327 the omission of minimum standards is important since the court of justice held in centros that freedom of establishment requires companies operate in any member state they choose 328 this has been argued to risk a race to the bottom in standards although the court of justice soon affirmed in inspire art that companies must still comply with proportionate requirements that are in the public interest 329 v t e investment law sources institutions for occupational retirement directive 2003 undertakings for collective investment directive 2009 markets in financial instruments directive 2004 alternative investment fund managers directive 2011 solvency ii directive 2009 see eu law the shareholder rights directive 2007 requires proxy vote instructions are followed there eu has not yet acted as have the swiss to prevent asset managers or banks like deutsche bank casting votes on company shares bought with other people s money and to empower the ultimate investors 330 among the most important governance standards are rights vote for who is on the board of directors for investors of labour and capital a draft fifth company law directive proposed in 1972 which would have required eu wide rights for employees to vote for boards stalled mainly because it attempted to require two tier board structures 331 although most eu member states have codetermination today with unified boards the shareholder rights directive 2007 requires shareholders be able to make proposals ask questions at meetings vote by proxy and vote through intermediaries this has become increasingly important as most company shares are held by institutional investors primarily asset managers or banks depending on the member state who a...
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