Employee representative (Code definition) meaning

In takeover practice, an employee representative is the person or body that speaks for a bidder’s (offeror’s) or target’s (offeree’s) employees for information and consultation during a takeover bid. Under the City Code on Takeovers and Mergers (UK Takeover Code), it means a representative of an independent trade union recognised by the offeror or the offeree in respect of some or all employees, and any other person elected or appointed by employees to represent them for the purposes of information and consultation. In practice, employee representatives must receive certain Takeover Code announcements and documents, and may provide a written opinion on the effects of the offer, which the offeree board must circulate to shareholders. Where no trade union is recognised, existing information and consultation representatives (for example, those elected under Information and Consultation of Employees legislation) will usually satisfy the definition; otherwise, employees may elect representatives for these purposes. Usage and effect are consistent across England & Wales, Scotland and Northern Ireland under the Takeover Code. In Ireland, the Irish Takeover Rules provide similar employee-information rights and the term is used in the same general sense, aligned with recognised trade unions and elected information and consultation representatives.