Reorganization: how the Works Council influences decision making
Supporting reorganizations with a Works Council that creates real influence
A reorganization has a major impact on both employees and the functioning of an organization. Especially during this phase, it is essential that decisions are not only legally sound, but also workable, future-proof, and broadly supported. The works council plays a key role in achieving this.
In practice, however, works councils are often only formally involved once plans have largely been finalized. CouncilWorks supports both works councils and organizations during reorganizations and mergers, focusing not only on the legal framework but also on how the works council can meaningfully contribute to careful decision-making and the effective functioning of the organization.
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What Is the role of the Works Council during a reorganization?
During a reorganization, the works council represents employee interests while also considering the effective functioning and continuity of the organization. The works council assesses proposed decisions based on their impact on people as well as on the organization as a whole. In doing so, it contributes substantively to careful and sustainable decision-making.
The works council is typically involved in:
Assessing reorganization plans in relation to employee and organizational interests
Identifying risks related to continuity, workability, and implementation
Asking critical questions about necessity, timing, and alternatives
Safeguarding careful processes, transparency, and consistent policy
Contributing to support for decisions and the effective functioning of the organization
When involved at an early stage, the works council can help develop solutions that benefit both employees and the organization.
When Is the Works Council involved in the reorganization process?
Under the Dutch Works Councils Act (WOR), the works council must be involved once a decision is being formally considered. While this legal moment is clearly defined, in practice the works council is often informed only after plans have already been largely developed, limiting the opportunity for influence.
A works council that aims to have meaningful influence does not wait for the formal advisory stage. By engaging early with executives and management, the works council can contribute to defining starting points, scenarios, and conditions. This helps ensure decisions that are not only socially responsible but also support the proper functioning of the business.
For an independent explanation of the legal position of the works council in reorganizations, we also refer to information provided by the Social and Economic Council of the Netherlands (SER).
What Is the difference between advisory rights and consent rights in reorganizations?
In reorganizations, the distinction between advisory rights and consent rights is essential for understanding the position of the works council.
Advisory rights
Advisory rights apply to major organizational and economic decisions, such as reorganizations and mergers. Management must seriously consider the works council’s advice and provide a reasoned response.
Consent rights
Consent rights apply to specific employment-related policies that directly affect employees. Management may only implement these decisions with the works council’s consent, insofar as they fall within Article 27 of the WOR.
For effective influence, it is essential that the works council not only understands which right applies, but also how and when these rights can be used strategically.
Discover how we support Works Councils during reorganizations and mergers
A reorganization requires careful preparation, clear roles, and effective employee participation. CouncilWorks supports both works councils and organizations in strengthening the role of the works council during reorganizations and mergers.
Would you like the works council to be involved not only formally, but also to contribute substantively to decisions that work for both people and the organization?
Discover how we support works councils during reorganizations and mergers and contact CouncilWorks to learn more.
Frequently asked questions about reorganizations and the Works Council
Yes. In many cases, a reorganization can proceed without the works council’s consent because reorganizations typically fall under advisory rights rather than consent rights. This does not mean, however, that the works council has no influence.
The works council must provide its advice before the decision is finalized. If the advice is not followed or the works council is involved too late, this may lead to delays, formal procedures, and loss of support. In addition, certain elements of a reorganization — such as employment-related policies — may still require works council consent.
For meaningful influence, it is therefore crucial that the works council is involved early in the process and actively engages in discussions about the direction and underlying principles of the reorganization.