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The concept of employee representation is deeply rooted in Dutch labour law. A Works Council supports bridge the gap between employees and management via a structured platform to be part of important company decisions.
AT A GLANCE
The Purpose of the Works Council Netherlands
The purpose of the Dutch Works Council is to benefit both the employer and employees, through employee representation in the workplace and a having a forum in which constructive feedback can allow the business to progress.
The council has consultation rights in respect of certain significant proposed management decisions. Furthermore, they have approval rights in respects of intended company decisions regarding employment policies. The rules concerning staff representation are described in the Works Councils Act Netherlands.
In the workplace the Works Council in the Netherlands represents employees’ interests in discussions with the entrepreneur regarding company policies, working conditions, and other relevant employment matters.
Is a Works Council Mandatory in the Netherlands?
The Works Council is mandatory in the Netherlands if the organisation employs at least 50 workers in accordance with the Dutch Work Councils Act [WOR]. An organisation with multiple legal entities in the Netherlands and each entity is exceeding the 50-employee threshold, will have to establish a council per legal entity.
Organisations with fewer than 50 employees are not required to set up a council. Instead, employees can voluntarily form a council, or opt for a representative body. While this body lacks the legal authority, employees retain the right to consultation through staff meetings.
Steps in Works Council Formation Process
Establishing a Works Council involves preparing the elections and helping the elected members build the knowledge and working arrangements they need to fulfil their role. Below are the 6 steps to consider when preparing a the Works Council setup.
Step 1. Confirm Headcount and Obligation to Establish the Works Council.
Determine when the 50-employee threshold was reached and document the relevant circumstances.
Step 2. Inform Employees and Prepare Elections.
Explain the role of the Works Council, who can stand for election and how employees can participate.
Step 3. Organise Elections.
Prepare the election rules and timetable, define the electorate, and conduct a fair nomination and voting process in accordance with the Works Councils Act.
Step 4. Arrange Training for Elected members and Management.
Initial training supports members understand their rights, responsibilities and consultation procedures, and develop an effective approach to working together.
Step 5. Agree ways of working between Works Council and Management.
Hold the first formal consultation meeting and record the agreed arrangements in a covenant or ways of working document. Cover meeting frequency, information sharing, communication, facilities and practical cooperation.
Step 6. Put Resources and Ongoing Development in Place.
Arrange the time, budget, facilities and access to information the Works Council needs, including support for further training and expert advice.
Works Council Setup for International Employers in the Netherlands
Works Council elections in the Netherlands is the process through which employees elect their representatives to serve on the Works Council.
According to Dutch law, any organisation with at least 50 employees is required to have a Works Council, and elections are the primary method for selecting its members. These elections ensure that the Council represents the interests of the entire workforce by allowing employees to choose who will speak on their behalf.
During these elections, eligible employees can nominate themselves or others to stand as candidates. Employees then cast their votes, and the candidates with the most votes are elected to serve on the Council.
A few specific considerations apply to international organisations. First, the obligation is tied to employees working in the Netherlands, not to where the organisation is headquartered. A US or UK-based company with 50 employees in Amsterdam must comply with the WOR, regardless of how employee relations are handled at the group level.
Second, decisions made at the global or group level that materially affect Dutch employees can still trigger Works Council rights locally. A restructuring decided for example in a US boardroom may require Works Council consultation before it can be implemented in the Netherlands.
Works Council Election Process
The process of Works Council elections involves several steps:
Step 1. Setting the Election Date
The existing Works Council (or the company, if the election is for the first Works Council) sets the date for the election. This is typically done well in advance to ensure that all employees have time to prepare.
Step 2. Nominations
Employees who want to run for a seat on the Works Council must nominate themselves or be nominated by their colleagues. Each candidate needs a certain number of signatures from eligible voters to qualify for the ballot. Unions can also propose candidates if they are involved.
Step 3. Campaigning
While the election process is formal, candidates often engage in informal campaigning by sharing their views on key issues. This helps employees make informed decisions when voting.
Step 4. Voting
All employees who are eligible to vote can participate. The vote is typically conducted via secret ballot, ensuring privacy and fairness.
Step 5. Announcement of Results
Once the votes are tallied, the results are announced, and the elected candidates take their seats on the Works Council. Their term usually lasts for three years, after which new elections are held.
Step 6. Formation of the Works Council
After the election, the newly elected members must formally organise the Works Council. This includes selecting a chairperson and establishing any committees needed to handle specific topics or issues.
How Human in Progress Supports with Works Council Setup
Ensuring that Works Council elections run smoothly and effectively is essential for the legitimacy of the Works Council and the company’s overall labour relations. Many organisations seek external expertise to support and streamline the election process, from drafting procedures, communication materials and after elections offering Works Council training.
Consulting
We work with organisations across the Netherlands, including international employers scaling into the Dutch market, to set up and manage Works Council obligations in a structured, compliant way. Here is what we typically support clients with managing the election process from start to finish, including documentation and communication:
- Expert Planning Support: Receive step-by-step guidance to plan and execute the election, including introduction sessions to get employees acquainted with the Works Council roles and responsibilities.
- Procedures: Drafting the Works Council rules of procedure.
- Tailored Employee Communication Materials: Get professionally crafted materials to inform and engage your employees, ensuring clarity and buy-in at every stage of the election process.
- Customised Presentation Materials: Access ready-to-use presentation tools for introduction sessions for employees, and management building transparency, and fostering trust.
- Legal Compliance: Ensure all procedures comply with the Dutch Works Councils Act, reducing risk and avoiding potential setbacks.
Works Council Training Courses
Additionally, Works Council training by Human in Progress can provide members and management (CEO, CFO, COO, and HR Professionals) valuable insights into their roles and responsibilities.
Our team of legal and HR consultants offers tailored support to ensure your Works Council elections are compliant, and successful. If you are not sure if your organisation is compliant, or if you are in the middle of a growth phase and need support, reach out to us for a free consultation.
