What Is A Works Council Under Dutch Law?

What Is the difference between a Trade Union and Works Council?

What Are the Staff Representation Rights?

The Work Council’s rights and responsibilities in the Netherlands are solely intended to protect employees in the working environment. It holds consultation rights regarding certain significant proposed management decisions. Additionally, it has approval rights concerning intended company decisions regarding employment policies.

Works Council Threshold in the Netherlands

A Works Council is legally required in the Netherlands if the business 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.

Does your company employ 1 to 10 employees?

• Your company may establish a staff meeting on a voluntary basis.

Does your company employ 11 to 49 employees?

• On the request of the majority of employees, the council can be set in place based on a voluntary decision. At the request of the majority of employees, there is an obligation by the WOR to set up an employee representative body [Personeelsvereniging]. If an employee representative body is established, staff meetings need to take place and are entitled to prior consultation.

Does your company employ 50 employees or more?

• Based upon the Works Councils Act, the Works Council is mandatory to be established.

In case your company owns more than 1 company, please ensure that each company with 50 employees and more has its own employee representation. A joint council is possible when those companies each employs less than 50 people, but the total amount of employees is 50 or exceeds this number.

How Many Members Are in the Works Council?

The employee representational body may remain in place for 2, 3 or 4 years, as this is described in their Rules of Procedure [OR-reglement]. After the term, new elections will be held. The composition and number of members is described in article 6 of the Works Councils Act.

More Information

• Human in Progress Academy: Works Council Courses
• Empowering Works Councils Through Expert Consulting.