This thesis examines to what extent implementation of the SE-regulations on employee participation in Denmark can be characterized as an efficient legal position with regards to current legislation in Denmark concerning employee representation.The legal analysis is based on the fact whether the employee repre-sentatives' legal position in Danish companies are changing by implementing the SE-regulations as standard in all Danish companies. Danish standard regulations are based on a statutory system where the SE-regulations entail a high degree of freedom of contract for the management and the employees. A com-parative analysis proves that implementation of the SE-regulations only affects the regulations regarding the procedure for the arrangement and not the actual task of the employee representatives. In addition hereto, the analysis proves that the employee representatives are more stakeholder-oriented than the remaining members of the top management; hence there is a need for such in Danish companies. The incentives of the employee representatives to participate in the work performed in the top manage-ment and handling of the interests of the company has also been analysed based on various legal themes concerning the procedure for the arrangement of employee representation and the rights, obligations and liability of the representatives. Implementing the SE-regulations might enhance the incentive of the em-ployee representatives in relation to the procedure of the arrangement, but not in relation to the remain-ing themes. Hence, this thesis also examines if alternative solutions to the incentive issue exists, e.g. in the shape of profit related fee, and development of competences. A variable fee might enhance the incentive of the representatives, but analysis of the risk profiles of the employee representatives proves that a varia-ble fee won’t enhance the incentives. The reason hereto is the fact that when the employee representative is assessed to be risk averse, he shall be compensated for the risk assigned, and in the event he is risk neu-tral, the fee will in most cases not be the primary matter resulting in the principal being unable to control the incentives by means of fees based on result. Implementation of the SE-regulations combined with de-velopment of the competences of the employee representatives will enhance the representatives’ incen-tives to actually participate in the work performed in the top management and also handle the interests of the company. Based on a legal and financial analysis, this thesis also presents a game-theoretic analysis based on a situa-tion of negotiation between the management and the employees, summarized in an assessment of, whether it would be efficient to implement the SE-regulations with regards to employee representation. Overall, this thesis concludes that the parties will in fact obtain the best possible solution by entering into negotiations and thereby reach to a better arrangement than the existing Danish arrangement on employee representation.
|Educations||MSc in Commercial Law, (Graduate Programme) Final Thesis|
|Number of pages||131|