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Participation of workers in companies: draft law in the Senate

A draft law on employee participation in companies is coming to life at the Labor Commission of the Senate - Profit sharing, entry on supervisory boards, employee share ownership, taking over the business with incentives are under discussion up to share plans – Many new features

Participation of workers in companies: draft law in the Senate

Participation of workers in enterprise management: a theme present in the political debate in many Member States of the European Union, which have variously arranged initiatives or tools dedicated to the involvement of workers. Here, the question has already been addressed in the last legislature and now the Labor commission of the Senate is finalizing the details and there is time until the 16th to present any amendments and corrections.

What is it about? The draft law provides for a list of modalities of involvement of employees which can be set up by companies through company bargaining or by adhering to territorial agreements signed by comparatively more representative workers' associations on a national and territorial level. These methods are represented by: 1) procedures of information and prior consultation with trade unions, workers, or specific bodies; 2) verification and control procedures on business management plans and industrial strategies and decisions agreed upon through the establishment of joint, equal or in any case mixed bodies. 

For employees, corporate contract it can provide methods of participation in the profits of the company as well as in the implementation and result of industrial plans. Methods of participation in the supervisory board or board of statutory auditors may also be envisaged, as well as direct or indirect methods of privileged access to shareholdings or capital quotas or option rights on the same. Finally, functional methods can be established for a process of taking over the business activity also through national and regional incentives for self-employment in the case of recipients of subsidies and social safety nets. There is also the possibility of having share plans that allow employees privileged access and on a voluntary basis to the possession of shares or capital quotas of the same, directly or through specifically established investment companies, foundations or associations to which the employees themselves they participate. These shareholdings or capital shares or even option rights on the same may constitute a share not exceeding 20 percent of the employee's future salary, and be assigned to a foundation or investment company in which all workers participate.

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