Priscilla is an expert in dismissal law, expats, and employee participation
priscilla.deleede@russell.nl +31 20 301 55 55A works council has various rights. With its rights, the works council can exert a lot of influence on company decisions. Which rights can be considered and how far do these powers reach?
The right to be consulted and the right of consent are the best known rights and most important powers of the works council.
Works councils also have other rights, such as the right of initiative. It is important not only for entrepreneurs but also for works councils to limit any adverse consequences for the staff and the continuity for the company. If, for example, there is no policy to prevent undesirable behaviour in the workplace or there is no complaints procedure, the works council can use its right of initiative and ensure that certain rules/policies are drawn up for the entrepreneur. Thus the works council can influence the entrepreneur’s policy.
Another right of the works council is the right to ask the court to appoint an expert to bring order to a company. An example of a works council that used the latter power is the works council of Big Bazar. This works council temporarily prevented bankruptcy of the company by filing an application with the court.
With its powers, the works council can therefore actively test the management’s policy, try to influence it and thus represent the interests of employees and the company. As a works council, do not underestimate the scope of your powers and, as an entrepreneur, do not underestimate the influence a works council can have. The works council really matters and (therefore) must be taken seriously.
Do you have any questions about powers of the works council? Or questions about which (strategic) options are possible in a particular case for works council or entrepreneur? Would you like to follow a tailor-made legal course on employee participation in which practical tips are shared? Please contact us:
Fraud causes billions in damages each year. Companies face, for example, fraudulent contracting parties, directors and employees. The management and supervisory board might play the most important role in a company when it comes to fraud prevention. In this newsletter we will give them some legal tools to prevent fraud.
The works council has the right to be consulted on proposed decisions regarding certain business economic and organisational matters. But what does a sound advice include? And what requirements does an advice have to meet?
The decision making within a company can be influenced by the works council in different ways. The best known route is by means of the works council’s right to be consulted and/or right of consent. But how can the works council influence the decision making by means of its right of initiative?
The new Corporate Governance Code has been in force since 1 January 2023. Changes mostly concern the ethical and social framework within which listed companies are to operate. What are the new standards for good business practice?
What was the most important and interesting legal news of 2022? Check out our top 10 posts from 2022.
The entrepreneur and the works council must meet each other at least twice a year to discuss company issues. How can the works council ensure effective consultation?
