Effective employee participation through clear ground rules
Effective cooperation with the works council benefits your operations. This requires clear ground rules. How are these established, what do they achieve and what are the pitfalls?
Lack of clarity on employee participation; duty to advise or not to consent
Sometimes it is not clear whether a proposed decision of the company requires advice or consent. Not infrequently, director and works council have discussions about this, which degenerate into disputes. This leads to delays in decision-making (and in business operations) and usually does not benefit smooth cooperation and mutual trust. A company agreement can offer a solution.
What does the Works Councils Act (WOR) say about a company agreement?
Section 32 WOR contains provisions on the works council agreement. By written agreement, the entrepreneur and the works council can mutually agree on powers of the works council. The condition is that the works council can only be granted additional powers.
Possibilities in the works agreement
In the works agreement, the entrepreneur and works council can arrange that certain intended decisions require the advice or consent of the works council. Or that consultations will be held on certain subjects. While this is not required under the WOR.
At first sight, it seems that by entering into such an agreement, the entrepreneur restricts himself unnecessarily in his decision-making. But there are also advantages for the entrepreneur by entering into a company agreement.
Possible agreements between entrepreneur and works council
An example. The employer can agree with the works council that consultations will be held on changes to employment conditions and that the parties aim to reach agreement on all proposed changes. Additional agreements can then also be made, for example:
- that consultations will be held on certain topics (such as the level of remuneration), but no agreement needs to be reached;
- that if no agreement is reached during the consultations, the works council will not invoke the right of consent regarding individual parts of the employment conditions (so that Section 27 of the WOR does not apply);
- That the works council will observe confidentiality on certain matters;
- that parties will seek advice or mediation if they cannot reach agreement.
Such agreements ensure that discussions are less likely to degenerate into protracted disputes and also that decision-making can be accelerated.
Pitfalls and points of attention when concluding company agreements for effective employee participation
It is very important that the company agreement specifies precisely which decisions require advice or consent. If not, discussions may arise as to whether a proposed decision requires advice or consent. Or discussions may arise about the scope of the obligation to advise or consent.
Furthermore, it is not wise to give the works council additional advisory or consent rights incidentally, outside a company agreement, because this could set an (undesirable) precedent.
Need advice on effective employee participation?
Do you need advice on the corporate agreement or effective cooperation with the works council? If so, please contact corporate law lawyer Peter Verheijden
