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When are the standard rules applied?

The standard rules are applied if negotiations between the special negotiating body (SNB) and the competent organs of the participating companies fail. The standard rules cannot be rejected by the participating companies: either all companies accept them or they have to dispense with the SE altogether.

If the SNB has decided not to open or to abort negotiations, the standard rules are not applied. On the other hand, the two parties may decide on a voluntary basis to apply the standard rules.

Furthermore, the standard rules for participation are compulsory only if at least one of the companies was previously governed by participation rules. They are automatically introduced when at least 25% (merger SE) or 50% (holding/subsidiary SE) of the employees previously had participation rights (Art. 7 II Dir). If this threshold is not met, the SNB can decide to apply them anyway.

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