The Influence of the Works Council on Employment Conditions

WOR: Right of Consent and Stimulating Role

The role of the works council in employment conditions is reflected in several parts of the Dutch Works Councils Act (WOR). For example, the works council has the right of consent regarding decisions about employment condition schemes, including pensions, remuneration, working and rest times, and employee training. In addition to statutory powers, the works council and the employer may make supplementary arrangements in a company agreement, also regarding employment conditions. A collective labour agreement (CLA) can also grant specific rights to the works council. For instance, a CLA provision may stipulate that a travel allowance must be established with the works council’s consent. Both concluding company agreements and delegating powers in CLA provisions occur increasingly in practice.

The works council also has a stimulating task. This means that it must actively promote the employer’s compliance with applicable laws and regulations, CLA provisions, and internal agreements on employment conditions. This requires a proactive attitude from the works council. It should position itself as a full business partner to the employer, one that wants to be involved or informed in a timely manner about decision-making processes, rather than as a mandatory obstacle to overcome.

Influence in Unilateral Amendments to Employment Conditions

The works council can also exert influence when an employer invokes the right to unilaterally amend employment conditions. The starting point is that the works council’s consent does not automatically bind employees to the intended amendment; individual agreement must still be reached with employees. Nonetheless, the works council’s consent is a factor in assessing whether the employer may unilaterally amend the conditions.

Unilateral amendment is possible if an unilateral amendment clause is included in the employment contract or if the amendment can reasonably be expected from the employee based on good employee conduct. In both cases, reasonableness is key, and the employer must provide compelling arguments for the intended change. It is relevant whether the works council has expressed its opinion on the amendment. Has it given consent or set conditions (e.g., a phasing-out or compensation arrangement)? If so, this can support the employer in implementing the amendment. Important: this is only one of several factors considered. The starting point remains that employee consent is required for changing employment conditions. Unilateral amendment is the exception.

Limits to the Works Council’s Influence

The influence of the works council on employment conditions is not unlimited. If a CLA applies, its provisions are leading—even if the company agreement contains different terms. The works council can make additional agreements in favour of employees, but with a standard CLA, deviations are not permitted, even with the works council’s consent.

Moreover, the works council represents both the employer’s interests and those of the collective group of employees. Individual agreements between employer and employee generally fall outside the works council’s sphere of influence.

In conclusion: the works council as a valuable partner

The works council plays a key role in setting and changing employment conditions within an organisation. By using its right of consent and its stimulating role, the works council can protect against adverse changes and contribute to better working conditions. It is important to involve the works council early in matters regarding employment conditions: a well-functioning works council strengthens and makes the organisation more resilient and creates employee support.

If you have questions about this blog, feel free to contact our Employment Law Team. We’re happy to help.