Five reasons to set up a works council within your company

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The Dutch Works Councils Act prescribes that companies that employ fifty people or more, are required to set up a works council. It goes without saying that compliancy is important for every entrepreneur, and being compliant is good publicity as well. Nevertheless we experience that a lot of entrepreneurs are hesitant when being confronted with the obligation to set up a works council. That´s a shame.

Please find hereunder five good reasons for wanting to set up a works council:

  1. Being a member of the works council makes an important contribution to the personal development of employees and can enhance your employees’ careers. Employees who are members of the works council can gain unique knowledge, skills and experience. If the entrepreneur records this experience and knowledge well, this will improve sustainable employability.
  2. The works council forms a platform for discussing the entrepreneur’s plans. The works council serves as a think tank for both operational issues – the office is being remodelled, this will have an impact on the availability of workplaces during three weeks – and more complicated issues, like a reorganization resulting in job losses. All substantial decisions are subject to the advisory right of the works council. That may sound to be quite time consuming, but let’s not forget that a plan will never get worse from asking critical questions. And in case that the plan is not strong enough to survive discussions with the works council, it might not be such a good plan after all.
  3. When the works council has approved the plan, there is a fair chance that the rest of the company will also accept it. Employees tend to have a positive attitude towards plans that have been approved by the works council.
  4. The provision of information about what is going on within the company has two sides to it. By discussing with and listening to the works council, the entrepreneur is able to get a better feeling about the sentiments and views of his employees. This enables the entrepreneur to really know what goes on within his company and to get everyone on the same page and rowing in the same direction.
  5. The works council is able to put certain topics on the map. Consider, for example, topics that are important for some groups within the company, like policy on minorities, equal treatment, the position of flexiworkers, working conditions and the company’s social activities. The works council can play an initiating and stimulating role in topics that are difficult to address for the entrepreneur or topics that are being overlooked easily.

In summary, enough reasons to set up a works council. In case that you are nevertheless apprehensive about setting up a works council, please give us a call and. We will take away your fears or that works council…

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About the author

Wouter Engelsman

+31 (0)6 810 51 925

we@clintlittler.com

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