In the Netherlands the Works Council [ondernemingsraad, OR] is an internal body representing, promoting and protecting the interest of the employees. The rules concerning the Works Council’s rights and responsibilities are described in the Dutch Works Councils Act, [WOR].
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What Is the Purpose of the Works Council?
The purpose of a council 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 advocates for:
- Regular consultations with the entrepreneur;
- Adherence to HR policies, employment law and regulations regarding working conditions, hours, and rest periods;
- Ensuring equal treatment and compensation for all employees.
Difference between Trade Union and Works Council
A Works Council is not the same as a Trade Union. These unions are (independent) organisations, representing employees within a certain industry or business sector.
The purpose of the Works Council 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 are solely intended to protect employees in the working environment.
The Trade Unions are negotiating Collective Labour Agreements of employment. This is an exclusive role – the Works Council will on average not have a say in this.
These 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.
What Are the Works Council’s Rights under Dutch Law?
The primary purpose of works council rights and interests is to safeguard employees in the workplace. Specifically, 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
Discussion of important proposed decisions regarding the organisation, including the appointment / dismissal of the Director.
Right of Consent / Right of Approval article 27 of the Works Councils Act
Discussion of proposed decisions concerning substantial changes in the terms of the employment conditions.
Right for Initiative article 23 of the Works Councils Act
Discussion of topics during or outside the regular consultation meetings with the entrepreneur.
Right to be Informed article 31 of the Works Councils Act
General active and passive right to be provided with information reasonably necessary for the proper fulfilment of their tasks and duties.
Non Compliance
Business changes can only be implemented after the Works Council process has been followed.
In case of non-compliance, the Works Council may (after the interference of the Branch Committee), request the Cantonal Court to declare the enterprise to comply with its obligations. The Cantonal Court may further oblige the employer or the Works Council to perform certain activities or to refrain from performing certain activities.
In case a decision is made contrary to the opinion given by the Works Council, the Works Council can lodge an appeal against the decision with the Enterprise Chamber of the Court of Appeal in Amsterdam, which the court can (depending on the circumstances) oblige the enterprise to withdraw its decision and reverse actions taken as a result thereof; and/or forbid the entrepreneur to perform activities which are an implementation of the decision taken.
How Many Members Should the Works Council Have?
Works Council members are elected by employees in the Works Council Election. The composition of the Works Council is described in article 6 of the Works Councils Act.
The Works Council 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 Works Council elections will be held.
