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A Works Council [ondernemingsraad, OR] is an elected employee representative body in the Netherlands. It represents employees in consultation with the employer and has statutory rights to information, consultation and participation in decisions affecting the undertaking and its employees.
Under the Dutch Works Councils Act (WOR), an employer must establish a Works Council for an undertaking in which at least 50 persons normally work, counted in accordance with the Act.
This article gives an overview of the objective, role, rights and responsibility of the Dutch Works Council.
AT A GLANCE
What Is a Works Council in the Netherlands?
The Dutch Works Council [Ondernemingsraad, OR] is an internal body, composed of elected employees, representing employees, promoting, and protecting the interest of the employees. The Works Council Netherlands power under the Works Councils Act Netherlands is to be informed by the entrepreneur, to give Works Council advice and approval on important decisions of employment matters.
What Is the Goal 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.
Works Council Threshold in the Netherlands
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?
- At the request of the majority of employees, there is an obligation by the WOR to set up an employee representative body [Personeelsvertegenwoordiging PVT]. 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 Netherlands, the Dutch Works Council is mandatory to be established.
In case your company owns more than one company in the Netherlands, 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.
At the same time, group structures can also create the basis for a Group Works Council [groepsondernemingsraad] or a Central Works Council [centrale ondernemingsraad] when multiple legal entities within a group each have their own Works Council.
International Companies in Scope
The Works Councils Act applies to any enterprise that operates in the Netherlands and meets the employee threshold, regardless of where the parent company is headquartered or what structures exist elsewhere.
This is a particularly relevant point for US, UK, Australian and other foreign companies expanding into the Dutch market. A Dutch branch, subsidiary, or operational legal entity with 50 or more employees triggers the same obligations as any Dutch legal entity.
Is a Works Council Mandatory in the Netherlands?
A 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.
The Role of the Works Council 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. The entrepreneur will start a consultation process with the Works Council when the company is proposing decisions that affect employees, such as organisational changes, and changes or introduction of new policies related to employment matters.
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. The main rights of the Dutch Works Council include:
- Right to be Consulted / Right of Advice article 25 and article 30 of the Works Councils Act.
- Right of Consent / Right of Approval article 27 of the Works Councils Act.
- Right for Initiative article 23 of the Works Councils Act.
- Right to be Informed article 31 of the Works Councils Act.
In summary the Works Council holds consultation rights regarding certain significant proposed management decisions. Additionally, it has approval rights concerning intended company decisions regarding employment policies.
Works Council or Workers Council
The correct English term for the Ondernemingsraad in the Netherlands, is Works Council, not Workers Council.
The unions have information and consultation rights in respect of collective dismissal. Furthermore, they have right in respect to mergers and considered with are considered to fall within the scope of the Dutch jurisdiction. The Dutch Works Council has information, initiative, consultation, and approval rights.
What Are the Pros and Cons of the Works Council Netherlands?
The pros of a Dutch Works Councils are to protect employee rights, provide a platform for employees to voice their concerns and interest, facilitate collaboration with the entrepreneur, management, involving employees in the decision-making process. The cons of a Dutch Works Council are longer decision-making timeframes due to Works Council consultation and negotiations, additional costs for the organisation.
How Many Members Are in the Works Council?
The composition of the Dutch Works Council is described in article 6 of the Works Councils Act Netherlands. There is a minimum of 5 and a maximum of 25 members sitting in the Works Council. The number of members is depending on the number of employees in the company:
- with 50 to 100 employees, there shall be 5 Works Council members.
- with 100 to 200 employees, there shall be 7 Works Council members.
- with 200 to 400 employees, there shall be 9Works Council members.
- with 400 to 600 employees, there shall be 11 Works Council members.
- with 600 to 1000 employees, there shall be 13 Works Council members.
- with 1000 to 2000 employees, there shall be 15 Works Council members.
- and so forth, with an additional 2 members for every further 1,000 employees, up to a maximum of 25 Works Council members.
Qualify for the Works Council Netherlands
Employees have the right to establish under the Works Councils Act Netherlands a Works Council in a company with at least 50 employees. The Works Council is elected by the employees and represents their interests in matters concerning the workplace. To qualify for the Works Council Netherlands according to Dutch employment law, employees must have worked for the organisation in the Netherlands for a minimum of 3 months. They should express their willingness to serve as a representative by standing for election.
Once elected, Works Council members participate in meetings, negotiations, and decision-making processes on various workplace issues such as working conditions, organisational changes, and employee rights.
Frequently Asked Questions Works Council
Does the Netherlands have a Works Council?
Yes. The Netherlands has a statutory system of employee representation through Works Councils, known in Dutch as ondernemingsraden (OR). A Works Council is elected by employees and has rights under the Dutch Works Councils Act (WOR), including rights to information, advice, consent and initiative.
What Are the Requirements for a Works Council in the Netherlands?
Under Article 2 of the WOR, an employer must establish a Works Council for an undertaking in which at least 50 persons normally work, counted in accordance with the Act. The undertaking does not necessarily coincide with a single legal entity. A collective labour agreement may also require a Works Council below this threshold. The establishment process includes provisional rules of procedure and the election of employee representatives.
What Is the Purpose of a Works Council?
A Works Council gives employees a formal voice in organisational decisions and employment policies. It represents employees in consultation with the employer, examines proposed decisions and puts forward proposals of its own. Its statutory purpose is to contribute to the proper functioning of the undertaking in all its objectives.
What Is a Workers’ Council?
Workers’ council can describe different forms of worker representation, depending on the country and context. In the Netherlands, the established English term is Works Council [ondernemingsraad].
More Information
- Works Council Elections Netherlands: Setup & Guidance.
- Works Council Netherlands Rights & Responsibilities.
- Human in Progress Academy: Works Council Courses
- Empowering Works Councils Through Expert Consulting.
