The works council (OR) plays an important role in Dutch labor law and is an essential body to ensure employee participation within an organization. In this blog, we take a closer look at the role and responsibilities of the works council, its rights and obligations, and how the works council can contribute to a better working environment for both employees and employers.
What is a works council and why is it important?
The works council is a legally required body (under the Works Councils Act) within companies with 50 or more employees. The works council represents the interests of employees and aims to influence decision-making within the organization. This ensures a balanced distribution of power and influence between employees and employers, which can lead to better management and labor relations.
The composition and election of the works council
The works council consists of employees elected by their colleagues. Depending on the size of the company, the number of works council members varies. Elections are held periodically, usually every three or four years. All employees have the right to vote and can stand for election as Works Council members.
Rights and duties of the works council
The Works Council has a number of legal rights and duties set forth in the Works Councils Act. Some important rights are:
- Advisory right: The Works Council has the right to give advice on certain (important) decisions, such as reorganizations, mergers and acquisitions, or investments.
- Right of consent: The Works Council has the right of consent with respect to a proposed decision to adopt, change or withdraw certain personnel regulations mentioned in the law. This means that such a decision cannot be taken without the consent of the Works Council.
- Right to information: The Works Council has the right to information about, among other things, the financial situation, the general course of affairs and the policy of the organization. This enables the OR to be well informed and effectively influence decision-making.
In addition to these rights, the Works Council also has a duty to represent the interests of all employees and to consult regularly with the employer on matters affecting the organization and employees.
The role of the works council in practice
The Works Council works closely with the employer to discuss and resolve problems and issues affecting employees. This is done during formal consultation meetings, as well as during informal conversations and meetings. The works council can proactively offer ideas and suggestions to improve the work environment and working conditions. In addition, the works council can play an important role in resolving conflicts between employees and the employer.
Cooperation with unions and other participation bodies
The works council can cooperate with trade unions and other employee participation bodies, such as employee representation or the European Works Council. By working together, these parties can act together and increase their influence in representing the interests of employees.
Training and support for works council members
To function effectively, it is important that Works Council members are well aware of their rights and obligations, and have the necessary knowledge and skills to perform their role well. Therefore, Works Council members are entitled to education and training. This training may include attending courses, attending conferences or engaging external advisors.
Works council's influence on business operations.
A well-functioning works council can have a positive impact on business operations. By working constructively with the employer and management, the works council can contribute to a better working environment, higher employee satisfaction and better decision-making. This can ultimately lead to higher productivity and better business results.
Closing
The works council plays a crucial role in Dutch labor law and ensures that employees have a say in decision-making within their organization. It is very important that works council members are well informed and make effective use of their rights and obligations. An active and involved works council can contribute to a better working environment and a successful organization.
This blog was written by Mr. Stijn Blom, employment lawyer at Arbeidsadvocaat.nl B.V. Stijn has extensive experience in employment law and assists entrepreneurs daily with a wide range of employment-related matters. From dismissal cases to drafting watertight contracts and policies – with his practical and personal approach, he helps employers and employees move forward. Want to know more?Visit Stijn's page.
If you have questions about this topic, contact Arbeidsadvocaat.nl.
May 2023
