A works council (Dutch: ondernemingsraad, OR) represents employees and ensures their interests are considered in company decisions. Additionally, it consists of elected staff members who work closely with management and HR.
By building a strong relationship with your company’s works council, you can create a happier workforce and a more positive corporate culture. In this guide, we’ll explain the essentials of it and how it benefits your business.
What Is a Works Council (Ondernemingsraden, OR)?
A works council is a group of elected employees who represent the wider workforce. Typically, members serve for 2–4 years and come from different departments. Moreover, employees can vote or be elected after working for at least three months. The council also appoints a Chairperson and Secretary, who manage daily activities.
Because council members face special protections like unfair dismissal, protections exist to safeguard them. Importantly, a works council differs from a union or collective labour agreement (CAO). It does not handle individual employee issues but focuses on decisions affecting the business and employee groups.
Does My Company Need it?
In the Netherlands, businesses with 50 or more employees must establish a works council. Furthermore, each legal entity of 50+ staff requires its own council.
However, if your company has fewer employees, staff representation like a personeelsvergadering is optional but highly recommended. Additionally, employees can request a council even in smaller companies.
Responsibilities of Works Councils
A works council protects employee interests and has three key rights:
- Right to Consultation – Management must discuss significant decisions affecting employees.
- Right of Consent – Approval is needed for changes to employee conditions.
- Right of Proposal – The council can suggest ideas that management must consider.
To support these rights, councils may gather information through surveys, inspections, or expert advice. Also, companies must provide council members with training and at least 60 hours per year during company hours to perform duties.
Additionally, councils should meet management at least twice a year to discuss proposals and decisions.
When to Consult Your Works Council (Recommended)
Always consult your works council before decisions that significantly affect employees. For example:
- Layoffs or restructuring
- Changes to compensation, benefits, or working hours
- Employee wellbeing initiatives
- Office relocation or IT system changes
- Changes in executive leadership
Moreover, consulting early ensures the council can provide useful feedback and improve outcomes for staff.
When to Seek Works Council Approval (Required)
Certain decisions require explicit council approval. These include:
- Pension and savings scheme changes
- Modifying working hours, leave, or rest periods
- Pay, performance evaluations, and promotions
- Policies on hiring, dismissal, and training
- Procedures for complaints, employee data, and whistleblower protection
By involving the council at the right stage, companies reduce legal risks and ensure smoother implementation.
Octagon Helps International Businesses Succeed
Maintaining a positive relationship with your works council ensures compliance, reduces workplace issues, and boosts engagement. Therefore, if your company needs help setting it up or requires expert HR support, our specialists at Octagon are ready to guide you. Contact us now and get the best HR and recruitment services for your company.
