When does the right to be consulted apply to the works council?

The works council has to be consulted with regard to certain decisions. Because of this, the works council can actively review or try to influence the policy of the director, and represent the interests of the employees. The right to be consulted applies to decisions on:

• Transfer of (part of) the undertaking
• Takeover of another company, disposing of control thereof or lasting cooperation with another company
• Shrinking, expansion or termination of (a significant part of) the activities
• Significant change in the organisation of the enterprise or the division of authority within the enterprise
• Change in location
• Recruitment and hiring of groups of employees
• Making significant investments for the enterprise
• Collection and provision of a significant loan
• Introduction or modification of a significant technological feature or measure regarding the environment
• Establishment of regulations regarding the acceptance of the risk for continued payment of wages of employees that fall under the Work and Income (Capacity for Work) Act
• Appointment or dismissal of a director

The advice has to be asked in time and the entrepreneur must give sufficient information so that the advice can actually have an impact on the decision that is to be taken. The works council will then be granted a reasonable period of time by the director to provide the advice. The works council has to convene at least once before advice can be given.