EU Inc (the 28th regime) · 2026/0074(COD)
Opposes the 28th company regime proposal as it undermines workers' rights, enables social dumping, and lacks sufficient safeguards for employee protections.
Limit the regime to startups, SMEs, or specific sectors rather than allowing large multinational groups to opt into a lighter corporate framework and bypass stronger national labour and social standards.
“Despite being marketed as supporting innovative startups, the proposal is not limited to startups, SMEs or specific sectors. The regime would be open to large multinational groups, enabling them to opt into a lighter corporate framework and bypass stronger national labour and social standards.”
Feedback, 2026-06-17
Strengthen preventive checks on beneficial ownership, labour obligations, tax compliance, money laundering, identity verification, and social security fraud rather than prioritising speed and deregulation in the fast-track registration and fully digital incorporation model.
“ETUC strongly criticises the 48-hour fast-track registration system and fully digital incorporation model, which prioritise speed and deregulation over effective public scrutiny. Preventive checks on beneficial ownership, labour obligations, tax compliance, money laundering, identity verification and social security fraud would be seriously weakened.”
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Reject the use of Employee Stock Option Plans (ESOPs) as substitutes for normal remuneration or collectively bargained wages to avoid shifting entrepreneurial and financial risks onto workers.
“ETUC rejects any use of ESOPs as substitutes for normal remuneration or collectively bargained wages. The proposal risks shifting entrepreneurial and financial risks onto workers while undermining secure wages and stable employment relationships.”
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Include binding safeguards for collective bargaining, trade union rights, information and consultation rights, and workers’ participation rights, ensuring these remain governed by the Member State where work is actually carried out.
“The proposal contains no effective operative safeguards protecting collective bargaining, trade union rights, information and consultation rights, or workers’ participation rights. References to the EU social acquis appear only in recitals and are therefore legally insufficient. ETUC emphasizes that labour law, collective agreements and social security obligations must remain governed by the Member State where work is actually carried out.”
Feedback, 2026-06-17
Tie employee participation rights, including board-level employee representation, to the place of employment rather than the Member State of registration to prevent evasion of co-determination systems.
“The proposal ties employee participation rights to the Member State of registration rather than the place of employment. ETUC warns that companies will be able to evade co-determination systems simply by registering in jurisdictions without BLER requirements, even where most workers are employed in countries with strong participation traditions.”
Feedback, 2026-06-17
Prevent corporate restructuring strategies that fragment operations to avoid triggering collective bargaining obligations, works councils, information and consultation rights, or employee participation rules.
“The EU Inc. framework would enable employers to fragment operations into subsidiaries and branches in order to stay below thresholds triggering collective bargaining obligations, works councils, information and consultation rights, or employee participation rules. ETUC sees this as a direct attack on workplace democracy and collective labour relations.”
Feedback, 2026-06-17
Ensure that digital governance does not disconnect corporate governance from the real workplace and that workers and trade unions can effectively monitor company practices and exercise democratic participation.
“ETUC warns that the fully digital company lifecycle risks disconnecting corporate governance from the real workplace. Fully online meetings, digital-only procedures and automated systems make it harder for workers and trade unions to monitor company practices, enforce rights and exercise democratic participation.”
Feedback, 2026-06-17
Guarantee systematic disclosure of employee numbers and workforce structures to enable trade union monitoring, labour law enforcement, and effective application of information, consultation and BLER thresholds.
“The proposal fails to guarantee systematic disclosure of employee numbers and workforce structures. ETUC considers this a serious obstacle to trade union monitoring, labour law enforcement and the effective application of information, consultation and BLER thresholds.”
Feedback, 2026-06-17
Include a binding non-regression clause to ensure the EU Inc. regime cannot be used to lower existing protections from national labour law, collective agreements, or workers’ participation systems.
“ETUC strongly opposes the absence of a binding non-regression clause ensuring that the EU Inc. regime cannot be used to lower existing protections stemming from national labour law, collective agreements or workers’ participation systems.”
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Require companies operating under the regime to register as employers and cooperate with labour inspectorates and social security authorities in every Member State where workers are employed to avoid enforcement gaps.
“The proposal does not sufficiently require companies operating under the regime to register as employers and cooperate with labour inspectorates and social security authorities in every Member State where workers are employed. ETUC considers this a major enforcement gap facilitating abuse and non-compliance.”
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Reject the country-of-origin principle so that workers are protected by the law and collective agreements of the place where the work is performed, not the Member State of registration.
“ETUC rejects the logic whereby the law of the Member State of registration governs matters not covered by the Regulation. This risks allowing companies to operate in one country while being governed by another country’s weaker corporate and social framework. The proposal therefore incentivises regime-shopping and social dumping, undermining the principle that workers are protected by the law and collective agreements of the place where the work is performed.”
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Use a legal basis other than Article 114 TFEU and adopt a Directive instead of a Regulation to allow Member States and social partners to strengthen workers' protections during transposition.
“ETUC strongly contests the use of Article 114 TFEU as legal basis for the 28th regime. Article 114 is intended to harmonise existing national laws, not to create a parallel optional company regime. Moreover, Article 114(2) explicitly excludes measures affecting the rights and interests of employed persons. ETUC also opposes the use of a Regulation rather than a Directive, as this deprives Member States and social partners of the possibility to strengthen workers’ protections during transposition.”
Feedback, 2026-06-17
Explicitly protect workers as privileged creditors in insolvency and liquidation procedures, safeguarding unpaid wages, severance entitlements, and social security contributions.
“ETUC criticises the fast-track liquidation and simplified insolvency regime for failing to explicitly protect workers as privileged creditors. The proposal does not adequately safeguard unpaid wages, severance entitlements or social security contributions.”
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