Doing Business in the Netherlands 2012 - American Chamber of ...

Doing Business in the Netherlands 2012
set up a three-member “employee representative body” if the majority
of the employees so request.
The management must consult with the staff representation committee
on a number of subjects, including intended decisions which may
result in job losses or major changes in the working conditions of at
least a quarter of the employees working in the company.
Small companies with less than 10 employees also have to set up a
three-member employee representative body, if the majority of the
employees so request. In comparison with the powers of an employee
representative body of a company with 10 to 50 employees, the
powers of an employee representative body of a company with less
than 10 employees are far more limited and only relate to intended
decisions that require prior approval.
In the absence of a Works Council and an employee representative
body, a company with at least 10 but less than 50 employees is
obliged to give its employees the opportunity to meet with the
management twice every calendar year during a personnel meeting.
Furthermore, the employees in such a company should be given the
opportunity to render their advice on any proposed decision that may
lead to a loss of jobs or to major changes in the terms of employment
or working conditions of at least one quarter of the persons working in
the company.
The Dutch Works Councils Act provides the personnel meeting with
the same advisory powers as an employee representative body in a
company with at least 10 but less than 50 employees.
An employee representative body and/or personnel meeting have
limited powers in comparison with the powers of a Works Council.
As opposed to a Works Council, an employee representative body
and/or personnel meeting – for example – cannot engage in legal
proceedings if the company does not abide by their written advice.
Baker & McKenzie 131