The Works Council Act is quite extensive. This article gives you a quick overview of the most important articles to be aware of. Want to know more about the Works Council and it’s position in the organisation read this article.
The Works Council Act has 3 articles that should be known by both Works Council members and entrepreneurs & HR:
Article 25: The right to Advice
Article 27: The right to Consent
Article 31: The right to Information
Below you will find a short summary of the articles containing the information you need to know when working in or with Works Councils. The entire Works Council Act can be found here more general information on the position and role of the Works Council can be found here.
Article 25: The right to advice
1. The entrepreneur shall give the Works Council an opportunity to render advice on any decision he proposes to make with regard to:
a. Transfer of control of the enterprise or any part thereof
b. Establishment, take-over, or relinquishment of control of another enterprise; entering into, significantly modifying, or ending a long-term collaboration with another enterprise; or making major changes to financial holdings related to such an enterprise
c. Termination of operations of the enterprise or a significant part thereof
d. Significant reduction, expansion, or other changes in the enterprise’s activities
e. Major changes to the organization or distribution of powers within the enterprise
f. Change in the location of the enterprise’s operations
g. Recruitment or borrowing of labour on a group basis
h. Major investments on behalf of the enterprise
i. Taking out major loans for the enterprise
j. Granting substantial credit to or providing security for substantial debts of another entrepreneur (unless this is standard practice for the enterprise)
k. Introduction or alteration of an important technological provision
l. Significant environmental management measures, including policy-related, organizational, or administrative changes
m. Adoption of provisions related to bearing risks under Article 40(1) of the Social Insurance Funding Act (Wet financiering sociale verzekeringen)
n. Commissioning external experts to advise on any of the above matters and defining their terms of reference
2. The entrepreneur must submit the proposed decision in writing to the Works Council at a time when the council’s advice can still significantly influence the decision.
3. When requesting advice, the entrepreneur must provide:
- A summary of the reasons for the decision
- Expected consequences for employees
- Proposed measures to address those consequences
4. Consultation Requirement
The Works Council may only issue advice after the matter has been discussed at least once in a consultation meeting. Article 24 (2) applies accordingly.
5. If the entrepreneur proceeds with the decision (after receiving advice), they must:
- Notify the Works Council in writing as soon as possible
- Explain any deviations from the council’s advice
- Seek further advice on the implementation of the decision, if not already done
6. Waiting Period
If the entrepreneur’s decision does not align with the Works Council’s advice, implementation must be postponed for one month after the council is notified—unless the council waives this requirement.
Article 27: the right of consent / endorsement
The endorsement of the Works Council shall be required for every proposed decision on the part of the entrepreneur to lay down, amend or withdraw:
a. Regulations pursuant to a pension agreement, a profit-sharing scheme or savings scheme
b. Regulations relating to working hours and rest periods or holidays
c. Pay or job-grading systems
d. Regulations relating to working conditions, sick leave or reintegration
e. Regulations relating to policy on appointments, dismissals or promotion
f. Regulations relating to staff training
g. Regulations relating to staff appraisals
h. Regulations relating to industrial social work
i. Regulations relating to job coordination meetings
j. Regulations relating to complaints procedures
k. Regulations relating to the handling and protection of personal information of persons working in the enterprise
l. Regulations relating to measures aimed at or suitable for monitoring or checking the attendance, behaviour or performance of persons working in the enterprise
m. A procedure for dealing with a report of a suspected abuse, as mentioned in Article 2, paragraph (1) of the Whistleblowers Authority Act [Wet Huis voor klokkenluiders]
all the above matters being insofar as they relate to all the persons working in the enterprise or any group thereof.
2. When requesting consent, the entrepreneur must provide:
- A summary of the reasons for the decision
- Expected consequences for employees
- Proposed measures to address those consequences
3. Consultation Requirement
The Works Council may only consent after the matter has been discussed at least once in a consultation meeting. Article 24(2) applies accordingly.
Additional Notes
These rules must have general effect—they apply to groups of employees, not individuals.
If the Works Council refuses consent, the entrepreneur may request authorization from the Subdistrict Court to proceed with the decision.
If a decision is made without consent or court approval, the Works Council may invoke its nullity.