EU: CJEU indicates that Germany’s legislation can retain the right for representatives of establishments in Germany to participate on supervisory boards

In an ruling delivered on 18 July, the CJEU declared that the EU Member States can legally choose to retain their right of representation and the collective defence of workers’ interests within the management an supervisory organs of a company with employees working within the Member State and that this does not breach the EU principle of non-discrimination not does it constitute an impediment to the free-movement of labor.
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A German shareholder in the tourist company TUI brought a case to court on whether Germany’s Co-Determination Act, which requires joint participation on the supervisory boards of large companies with more than 2,000 staff, actually violated the principle of non-discrimination as guaranteed by the treaty on the Functioning of the European Union (TFEU). According to the shareholder, 80% of TUI staff cannot be represented on the board because they cannot present any candidate for a seat on the boa

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