Employee Advisory Rights of the Works Council in Amsterdam
The advisory rights of the works council (OR) form a critical component of Dutch labor law, empowering the works council to provide advice on significant decisions made by employers in Amsterdam. This mechanism enables employees—through their OR—to influence matters affecting their jobs and working conditions, such as restructuring or mergers in Amsterdam’s dynamic economy. This article explores the details of these advisory rights, their application, and their practical operation, with a focus on the local context of the capital.
What Do the Advisory Rights of the Works Council Entail?
The works council (OR) is an elected body representing employees in companies with at least 50 staff members—a common structure in Amsterdam’s tech and finance sectors. Under the Works Councils Act (WOR), the advisory rights grant the OR the authority to issue a substantiated opinion on specific planned employer decisions. Unlike the consent requirement, where the employer must obtain the OR’s approval, advisory opinions are non-binding. However, the employer must carefully evaluate them and provide compelling justification if disregarding the advice.
These rights apply to strategic and organizational changes within the company, aiming to protect employees’ interests and prevent decisions made without their input. For Amsterdammers, this is particularly relevant during transitional periods, such as restructuring in the city’s diverse business landscape. This article complements our earlier overview of Dismissal During Restructuring – Your Rights, which examines the OR’s role in redundancy cases—a frequent issue in Amsterdam’s dynamic market.
Legal Basis of Advisory Rights
The foundation for advisory rights is established in the Works Councils Act (WOR), particularly under **Article 25**, which outlines the topics requiring early employer consultation and OR advice. Key examples include:
- Transfer of a business or a standalone division.
- Designating activities as an independent business unit.
- Sale of shares or bonds.
- Formation of a joint venture.
- Mergers with another company.
- Establishment or dissolution of an enterprise.
During restructuring—often leading to redundancies—the broader employee involvement regulations apply. **Article 26 WOR** imposes additional advisory obligations, such as when drafting a restructuring plan with dismissal consequences. Employers must inform the OR at least one month in advance and allow time for advice. Failure to comply enables the OR to approach the **subdistrict court of the Amsterdam District Court** for redress.
Advisory rights are also shaped by EU law, specifically **Directive 2002/14/EC** on employee information and consultation, reinforcing robust co-determination in the Netherlands—critical for Amsterdam’s international workforce.
When Do Advisory Rights Apply?
Advisory rights are limited to the categories listed in **Article 25 WOR** and typically arise in:
- Restructuring: When an Amsterdam-based company seeks to reduce costs by closing or relocating departments, the employer must consult the OR on the plan.
- Mergers and Acquisitions: In a merger with a local competitor, the OR must advise on job and condition implications.
- Strategic Decisions: Outsourcing tasks or securing substantial loans may also trigger advisory requirements.
Not all changes qualify; routine adjustments, such as minor workforce tweaks, do not. For clarity, we compare advisory rights with the consent requirement:
| Aspect | Advisory Rights (Art. 25 WOR) | Consent Requirement (Art. 27 WOR) |
|---|---|---|
| Application | Strategic decisions (e.g., mergers, restructuring) | Direct employment terms (e.g., schedules, salaries) |
| Employer Obligation | Must consider seriously; overriding interest needed to reject | Explicit approval required |
| Consequences of Non-Compliance | OR may appeal to Amsterdam District Court; possible suspension | Decision may be voided |
This distinction is vital for OR members and employees in Amsterdam facing changes.
The Advisory Rights Procedure
Employers must inform the OR in writing and well in advance—ideally four weeks before implementation. The OR can request data, hold discussions, and submit a motivated opinion balancing business and employee interests.
If the employer rejects the advice, they must justify it in writing with a compelling reason. The OR can then, within one month, approach the **subdistrict court of the Amsterdam District Court** to challenge the decision’s validity or enforce a suspension. In practice, this often leads to negotiations, where the OR may secure improvements—such as a social plan via the **City of Amsterdam**.
Practical Examples of Advisory Rights in Amsterdam
For instance, a mid-sized tech company in Amsterdam plans to restructure due to declining revenue, aiming to lay off 20% of staff and outsource development. Under **Article 25 WOR**, the employer must share the plan—including financials and employment impacts—with the OR. The OR may propose alternatives, such as flexible hours instead of redundancies. If the employer proceeds without adequate justification, the OR can take legal action at the **Amsterdam District Court**, potentially resulting in adjustments or compensation. For personalized advice, we recommend contacting the **Amsterdam Legal Desk (Juridisch Loket Amsterdam)**.
Veelgestelde vragen
Wat is mijn retourrecht?
Bij online aankopen heb je 14 dagen retourrecht zonder opgaaf van reden, tenzij de wettelijke uitzonderingen gelden.
Hoe lang geldt de wettelijke garantie?
Goederen moeten minimaal 2 jaar meewerken. Defecten die binnen 6 maanden ontstaan worden verondersteld al aanwezig te zijn.
Kan ik rente eisen over schulden?
Ja, je kunt wettelijke rente eisen (momenteel ongeveer 8% per jaar) over het openstaande bedrag.
Wat kan ik doen tegen oneerlijke handelspraktijken?
Je kunt klacht indienen bij de consumentenbond, de overheid of naar de rechter gaan.
Wat is een kredietovereenkomst?
Een kredietovereenkomst regelt hoe je geld leent, wat de rente is, en hoe je dit terugbetaalt.