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What Is the Works Council (Ondernemingsraad)?
The Works Council (ondernemingsraad, OR) is a mandatory employee representation body required under Dutch law for companies that regularly employ 50 or more people. It gives employees a formal voice in significant business decisions, with legal rights to be consulted, informed, and, in some cases, to grant or withhold consent.
A works council isn't just a formality: for certain decisions, such as changes to pension schemes or working hours, an employer legally needs its consent before proceeding.
Works Council at a Glance
| Attribute | Description |
|---|---|
| Legal Basis | Wet op de ondernemingsraden (WOR) |
| Mandatory Threshold | 50 or more employees, on average |
| Below Threshold Option | Staff representation body (PVT), optional from 10 employees |
| Key Rights | Advice, consent, and initiative on specified decisions |
| Meets With Employer | At least twice a year |
| Best For | Companies scaling their Dutch workforce past 50 employees |
Why Does It Matter?
Failing to establish a required works council isn't just a missed formality; it can delay or jeopardize UWV approval for dismissals, weaken an employer's position in court disputes, and prevent legally valid unilateral changes to employment conditions. For growing companies, crossing the 50-employee threshold triggers a real compliance obligation.
When Is It Used?
The works council becomes relevant when a company:
- Grows its Dutch workforce to or beyond 50 employees.
- Plans a reorganization, merger, or collective redundancy.
- Wants to change company-wide policies like working hours or absence procedures.
A German software company's Dutch subsidiary grows from 40 to 55 employees over a year. Once it regularly employs 50 or more staff, it becomes legally required to establish a works council, and any subsequent changes to working hours policy must go through the council's consent process.
Common Misconceptions
No. Once a company regularly employs 50 or more people, establishing a works council is a legal requirement, not a choice.
No. Its powers are limited to specific categories of decisions defined by law, primarily advice rights and consent rights on employment-related matters.
No. The legal obligation exists regardless of whether employees have expressed interest in participating.
No. It also has ongoing rights regarding working conditions, policy changes, and general business updates, discussed at least twice a year.
The Works Council is a mandatory representative body for Dutch companies with 50 or more employees, with real legal rights over specific workplace decisions. Employers approaching this threshold should plan for its establishment well before it becomes a compliance gap.
Scaling your Dutch team past 50?
We'll help you stay compliant with works council obligations as your Netherlands headcount grows.
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