114 - The Works Council Under Dutch Law

Littler International Employment Law Podcast

In this episode, Jasper Hoffstedde and Dennis Veldhuizen shed light on the works council’s purpose and added value in the decision-making process. For U.S.-based listeners, Dennis’ quick side-by-side comparison of union vs works council rights may be of interest. Furthermore, all of the basics are explained: when and how to set up a works council, when to actually involve the works council, and who should serve as point of contact to the works council? What is a works council? A works council is an independent participation and co-determination body within the employer’s organization, meant to keep both the employer’s and employees’ interests in check. Companies that generally employ 50 people or more are obliged to install a works council. At the same time, many companies do not comply with this obligation out of a perceived fear of losing the ability to make swift business decisions. As discussed here, the opposite is mostly true, and, more importantly, failing to set up a works council where there is a legal obligation to do so may have even further-reaching consequences in frustrating the decision-making process.