A works council (OR) is an important body within a company that represents the interests of employees. The OR has various duties and responsibilities that are established in the Works Councils Act (WOR). In this blog, we discuss the main duties of the works council and how these contribute to healthy and transparent business operations.
- Right of Advice
One of the most important duties of the works council is to provide advice to management on important decisions. This right of advice applies particularly to significant changes within the organization, such as reorganizations, mergers, or relocations. The OR must be enabled to receive timely and sufficient information to provide well-founded advice.
Example:
In the case of a planned reorganization, management must seek advice from the OR regarding the possible consequences for employees and the company as a whole.
- Right of Consent
The OR has the right of consent for decisions relating to regulations in the field of employment conditions, such as working hours, working conditions, and personnel evaluations. Without the consent of the OR, management cannot implement these regulations.
Example:
If management wants to adjust working hours, it must obtain consent from the OR.
- Right to Information
The OR has the right to all information necessary to properly fulfill its duties. This means that management is obligated to regularly inform the OR about the state of affairs within the company, such as financial results, strategic plans, and personnel policy.
Example:
Management must periodically keep the OR informed of the company’s financial situation by providing quarterly and annual reports.
- Right to Consultation
The OR and management have the obligation to conduct regular consultations. These consultations serve to exchange information, discuss viewpoints, and jointly arrive at solutions for any problems within the organization.
Example:
Monthly consultations between the OR and management to discuss the progress of ongoing projects and any bottlenecks.
- Right of Initiative
The OR has the right to make proposals that can improve business operations. This right of initiative enables the OR to proactively contribute to the company’s policy and strategy.
Example:
The OR proposes implementing a new policy for remote work to improve employees’ work-life balance.
- Rights in Merger and Acquisition
In the case of a merger or acquisition, the OR has specific rights. Management must inform and consult the OR early about the proposed transaction and its consequences for employees.
Example:
In the case of a planned acquisition by another company, management must involve the OR in the process and seek advice on the consequences for personnel.
Conclusion
The works council plays a crucial role in safeguarding the interests of employees and promoting transparent and fair business operations. By utilizing its rights of advice, consent, information, consultation, and initiative, the OR can effectively contribute to a healthy work environment and sustainable policy.
Do you have more questions or would you like specific advice for or about the OR? Contact Emilie van der Lans (emilie@wesselvanderlans.nl) or Jordie Wessel (jordie@wesselvanderlans.nl) as specialists in employment law and employee participation for advice.
