European Works Council under Dutch law
The European Works Council (Europese ondernemingsraad, EOR) is a transnational employee representation body established in multinational companies to facilitate information and consultation across borders. In the Netherlands, the obligation to establish a European Works Council is governed by the Act on European Works Councils (Wet op de Europese ondernemingsraden, WEOR), which implements EU Directive 2009/38/EC.
The obligation to establish an EOR arises when a company or group of companies has at least 1,000 employees within the EU/EEA and at least 150 employees in each of at least two member states. If these thresholds are met and the central management is located in the Netherlands (or if the Netherlands is the designated central management country for non-EU headquartered groups), Dutch law applies to the establishment process.
Establishing a European Works Council
The process starts with a Special Negotiating Body (bijzondere onderhandelingsgroep, BOG) made up of employee representatives from the relevant member states. The BOG negotiates with central management over the composition, powers, and procedures of the EOR. The parties have three years to reach a negotiated agreement. If no agreement is reached within that period, the statutory standard rules set out in the WEOR apply automatically.
The EOR has rights to information and consultation on transnational matters - that is, decisions that affect establishments in more than one member state. These include restructuring, collective redundancies, relocation of production, and major changes in work organisation. The EOR does not have the same veto powers as the Dutch works council under the WOR, but its information and consultation rights are legally enforceable.
Interaction with the national works council
The EOR operates alongside the national works council. The two bodies should coordinate, particularly when a decision has both national and transnational elements. The WEOR contains specific provisions to avoid duplication of information and consultation processes. An employment lawyer experienced in both Dutch works council law and European labour law can guide companies through the interaction between the two frameworks. The WEOR contains specific rules to prevent double consultation: when a decision falls within the EOR's transnational mandate, the national works council's rights are not automatically triggered for the same matter, and coordination procedures between the two bodies are required. Unlike the Dutch works council under the WOR - which can in certain circumstances render employer decisions void for lack of consent - the EOR has no veto power; its influence operates through the information and consultation process and, in cases of breach, through legal proceedings for enforcement of procedural rights.