Pursuant to the Dutch Works Councils Act, every company with 50 or more employees must have a works council.
The director must submit important resolutions to the works council for advice. This includes merger or restructuring plans, downsizing or important changes to activities and operations. Approval of the works council is required for resolutions in the area of terms and conditions of employment, e.g. working hours and job evaluations.
In addition, the works council obtains ever more extensive rights, for example in respect of executive pay. The works council is also entitled to nominate a supervisory director, as a result of which there is – by law – question of a tripartite relationship in case of governance: Board of Directors, Supervisory Board and Works Council.
The lawyers of Pallas Employment Lawyers have vast experience in the supervision of various employee participation processes.