Works Council consultation in the Netherlands is a cornerstone of employee participation in the Netherlands.
Employers are legally required to involve the Works Council in certain strategic decisions but knowing exactly when and how to consult can be complex. In this article, the legal requirements, the rights of the Works Council, and key do’s and don’ts of consultation are explained.
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Objective of the Works Council Netherlands
In the workplace the Works Council Netherlands represents employees’ interests in regarding company policies, working conditions, and other relevant employment matters. The purpose is to benefit both the employer and employees, through the representation in the workplace and a having a forum in which constructive feedback can allow the business to progress.
The Works Council’s rights and interests in the Netherlands are solely intended to protect employees in the working environment.
Director Defined in the Dutch Works Councils Act
A Director [Bestuurder], defined in the Dutch Works Councils Act, is the individual who, either alone or together with others, holds the highest direct authority over the management of work within the enterprise.
In practice, this role is typically fulfilled by the Chief Executive Officer (CEO), General Manager, or Executive Director.
While members of the leadership team and HR may participate in consultation meetings with the Works Council, they do so in a supporting capacity, not as the formal Director. Their involvement is intended to provide subject-matter expertise relevant to the topics under discussion, rather than to lead or represent the employer in the consultation process.
Rights of Works Council 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.
An European Works Council (EWC) is required in a European multinational company, with more than 1000 employees, operating in the EU or EEA countries, with at least 150 employees in each of at least two Member States.
The local 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
Examples:
- Mergers, acquisitions, or divestitures.
- Reorganisations or downsizing.
- Relocation of the company.
- Significant investments or divestments.
- Outsourcing or insourcing of work.
Right of Consent / Right of Approval article 27 of the Works Councils Act
Examples:
- Working hours and schedules.
- Remuneration systems/framework.
- Performance appraisal systems/framework.
- Health & safety, and welfare policies.
Right for Initiative article 23 of the Works Councils Act
The Works Council has the right to initiate proposals on any matter concerning the organisation. In practice, many Works Councils include such initiatives in the annual consultation calendar, allowing for structured and timely discussion throughout the year. These topics often reflect employee interests and strategic priorities, and may cover:
- Talent Management Strategy: Discussing the current initiatives by the employer aimed at attracting, retaining, and developing talent within the organisation.
- Employee Engagement and Communication: Discussing the employee survey results, feedback mechanisms, and internal communication improvements.
- Diversity, Equity & Inclusion (DEI) Strategy: Gain insights for a more inclusive workplace culture and promote equal opportunities.
Right to be Informed article 31 of the Works Councils Act
Examples:
- Financial Performance/ Annual Financial Report/ Budget Forecasts.
- Strategic Direction/ Business Plans/ Market Positioning
- Employment Forecasts /HR Data (Hiring, termination figures, absenteeism rates)
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 Consultation Netherlands
Consultation is a central mechanism through which the dialogue occurs between the Director and the Works Council.
It is the formal process where the Director shares confidential information, and discusses proposed decisions with the Works Council before implementation. This includes:
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Providing Timely and Sufficient Information
The Works Council must be involved at a stage where it can still influence the outcome, not when a decision is already made or information has been shared within the organisation.
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Holding Consultation Meetings
The Director is legally required to hold consultation meetings with the Works Council at least twice per year (Article 23 WOR). These meetings serve to discuss the general course of affairs within the enterprise, including strategic, operational, and personnel-related matters.
However, in practice, and in line with best governance many organisations opt for a more frequent consultation rhythm. Based on an annual consultation calendar that includes both mandatory topics (e.g., financial results, strategic changes) and company-specific issues (e.g., reorganisations, policy updates in scope for the Works Council), recurring consultation meetings are often held quarterly or bi-monthly.
The frequency is typically determined by the volume and complexity of topics requiring Works Council input.
This proactive approach ensures timely dialogue, strengthens mutual understanding, and supports compliance with both the letter and spirit of the WOR.
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Submitting Formal Written Request to the Works Council to Give Advice or Consent
Consultation is not merely informative, it is interactive and influential. The Director must submit formal written requests to the Works Council when seeking either advice (Article 25 WOR) or consent (Article 27 WOR), depending on the nature of the proposed decision.
These requests must be timely, well-substantiated, and include all relevant information necessary for the Works Council to assess the implications of the decision. This includes the rationale (case for change), alternatives considered, impact on the Dutch organisation and employees, a communication plan, and the timeline for implementation.
Timing of Consultation
When consulting the Works Council on a proposed decision, the Director is legally required to hold at least one formal consultation meeting.
There is no statutory deadline within which the Works Council must issue its advice or consent.
The duration of the consultation process depends on the complexity and urgency of the subject matter. Common practice in Dutch organisations shows that:
- Simple or routine matters may be concluded with the Works Council within 2 to 6 weeks.
- More complex or sensitive issues (e.g., reorganisations, IT implementations) may require 4 to 8 weeks or longer.
However, the Director must allow the Works Council sufficient time to assess the proposal, request additional information if needed, and deliberate internally.
Consultation Awareness for International Organisations
For international organisations operating in the Netherlands, it is essential that HR professionals, project managers, and C-level executives are fully informed about the consultation requirements under the Dutch Works Councils Act. This awareness ensures that legal obligations are met and that project timelines are realistic and compliant.
To support proper planning, consultation with the Works Council should be integrated into the project timeline from the outset. A minimum lead time of 4 to 8 weeks should be commonly allocated for the consultation process, depending on the complexity and sensitivity of the subject matter. This period allows for:
- Preparation and submission of a formal advice or consent request.
- Scheduling and conducting consultation meetings.
- Internal deliberation by the Works Council.
- Potential follow-up discussions, Q&As or clarifications.
It is recommended to include Works Council consultation as a standard milestone in project planning and change management processes, and to ensure that the global organisation (if applicable) is made aware of this local legal requirement.
What Is Not Allowed During Works Council Consultation
Under the Dutch Works Councils Act, the consultation process with the Works Council must be conducted with integrity, confidentiality, and in accordance with legal procedures. Regardless during the information-sharing phase or the formal request for advice or consent, certain actions are explicitly prohibited:
1. Premature Disclosure of Intended Decisions
It is not permitted to share information about the proposed decision with the wider organisation before the Works Council has been formally consulted and given the opportunity to be informed, to give advice or consent. This includes internal announcements, newsletters, or informal communications.
2. Informing Impacted Employees Too Early
The employer may not inform employees, especially those individuals directly affected about changes (e.g., reorganisations, redundancies, relocations) before the Works Council has been consulted.
3. Sharing Employee Data with External Parties
In cases such as IT or HR implementations or outsourcing, employee data may not be shared with vendors or third parties until the Works Council has been consulted and, where applicable, has given consent (especially under Article 27 WOR regarding privacy and monitoring systems).
4. Public or Internal Announcements of Final Decisions
The employer must not announce (internal/external) or implement any decision subject to advice or consent before the consultation process is completed.
Consequences of Non-Compliance
Failure to respect these restrictions during Works Council consultations in the Netherlands can result in:
- Legal invalidation of the decision.
- Annulment of the implementation.
- Reputational damage and loss of trust.
- Court proceedings initiated by the Works Council.
