Publication date: 24 March 2016
The management of a company has to consult the works council with respect to a number of important decisions – what kind of decisions are these?
The entrepreneur must consult the Works Council prior to taking certain decisions. That way, the works council can actively check the policy of the management, try to exercise an influence and to promote the interests of the employees. This obligation only applies to companies with more than 50 employees and therefore must have a Works Council.
The duty to consult the Works Council applies to, a.o., intended decisions regarding:
The management shall grant the Works Council a reasonable period to provide advice. It will depend on the circumstances which period is considered reasonable in an advisory procedure.
Taking decisions without waiting for the advice of the Works Council is not devoid of risks. The Enterprise Section of the Amsterdam Court of Appeal has ordered entrepreneurs for that reason several times to revoke the respective decision.
When – after having received the (negative) advice from the Works Council or in the event no advice was received – the management takes the decision, the management shall notify in writing the Works Council as soon as possible of that decision. If the management does not follow the advice from the Works Council, they will have to explain why they deviated from the advice. In doing so, the management must discuss the specific objections in the advice of the Works Council.
The management is obliged to suspend the implementation of the decision up to one month from the day the works council was notified of the decision. Within this month the Works Council has to decide whether it intends to appeal against the decision to the Enterprise Section.
Do you have any questions on the right to be consulted and other rights of the Works Council, or any other questions regarding corporate law and employee participation? Please contact us:
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