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The Board Representation (Private Sector Employees) Act

The employees in a limited liability company, economic association and certain other types of companies with at least 25 employees are entitled to appoint two members and two deputy members to the board of directors of the company. Furthermore, in companies with at least 1,000 employees and which are engaged in several different industries, the employees may appoint three board members and three deputy board members. However, a prerequisite for the right to appoint board members and deputies is that the company is bound by at least one collective bargaining agreement.

The employee representatives should preferably be appointed from amongst the employees at the company or, for parent companies, from amongst the employees of the group.

The employee representatives have the same rights and obligations as the other board members. Furthermore, the employee deputy board members have an increased right to participate at the board meetings, as compared to the deputy board members appointed by the general meeting of the company.

The employee representatives may not participate in dealing with issues that relate to the collective bargaining agreement, industrial actions or other issues where a union organization at the workplace has a material interest that may conflict with the interests of the company.

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