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Employee Council Advisory Rights in Tilburg

Discover the works council’s advisory rights in Tilburg: how employees influence restructuring and mergers. Relevant for local jobs and labor law.

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Employee Council Advisory Rights in Tilburg

The advisory rights of the works council form a crucial component of Dutch labor law, enabling the works council (OR) in Tilburg-based companies to influence key employer decisions. This right empowers employees to engage in discussions—through the OR—about changes affecting their jobs and working conditions, such as restructuring or collaborations. This article explores what advisory rights entail, when they apply, and how they function, with a focus on the Tilburg context.

What Do the Works Council’s Advisory Rights Entail?

The works council (OR) is an elected employee body in companies with at least 50 staff members, commonly found in Tilburg’s local industries like manufacturing and logistics. Under the Works Councils Act (WOR), advisory rights allow the OR to provide a substantiated opinion on significant proposed employer decisions. Unlike consent rights, where the employer requires the OR’s approval, advisory opinions are not binding. However, the employer must carefully consider them and provide compelling reasons to disregard them.

These rights focus on strategic and organizational shifts within the company, aiming to protect employees’ interests and ensure decisions are not made without consultation. For Tilburg workers, this is particularly relevant in a region with many SMEs facing economic pressures. This article complements our earlier piece on Dismissal During Restructuring – Your Rights in Tilburg, which highlights the OR’s role in redundancy cases.

Legal Basis of Advisory Rights

The legal foundation of advisory rights is established in the Works Councils Act (WOR), specifically under Article 25. This article outlines the topics requiring timely employer notification and OR consultation, including:

  • Transfer of a business or an independent part thereof.
  • Designation of tasks as a standalone division.
  • Sale of shares or bonds.
  • Launching a joint venture.
  • Mergers with other companies.
  • Establishment or closure of a business.

In Tilburg, restructuring—often linked to redundancies in manufacturing—falls under expanded co-determination rules. Under Article 26 WOR, employers must notify the OR at least one month in advance and seek advice on reorganization plans affecting jobs. Failure to comply allows the OR to appeal to the subdistrict court in Breda (Rechtbank Zeeland-West-Brabant). Tilburg-based OR members can seek free initial advice from the Tilburg Legal Helpdesk (Juridisch Loket Tilburg).

Advisory rights are also shaped by EU law, specifically Directive 2002/14/EC on employee information and consultation, reinforcing strong co-determination in the Netherlands, including Tilburg.

When Do Advisory Rights Apply?

Advisory rights are limited to the categories under Article 25 WOR and apply primarily to:

  1. Restructuring: If a Tilburg-based company, such as a local textile factory, seeks cost-cutting by closing or relocating departments, the employer must consult the OR on the plan.
  2. Mergers and Acquisitions: In a merger with a neighboring business, the OR must advise on employment and regional conditions.
  3. Strategic Decisions: Outsourcing activities or taking on substantial loans may also trigger advisory obligations.

Not all changes qualify; routine decisions, such as temporary workforce adjustments, fall outside this scope. For clarity, we compare advisory rights with consent rights:

Aspect Advisory Rights (Art. 25 WOR) Consent Rights (Art. 27 WOR)
Application Strategic decisions like mergers, restructuring Direct employment terms (e.g., schedules, salaries)
Employer Obligation Thorough assessment; overriding interest required to reject Explicit approval mandatory
Consequences of Non-Compliance OR may involve court; possible suspension Decision may be annulled

This distinction is critical for Tilburg-based OR members and employees navigating transitions.

The Advisory Rights Procedure

The employer must notify the OR in writing and well in advance—ideally four weeks before implementation. The OR can request data, hold discussions, and submit a reasoned opinion balancing company and employee interests. In Tilburg, the Municipality of Tilburg may also engage on broader economic impacts.

If the employer ignores the advice, they must justify this in writing with compelling reasons. The OR then has one month to approach the subdistrict court in Breda for suspension or annulment of the decision. Often, this leads to negotiations, where Tilburg-based ORs may negotiate improvements, such as local social plans.

Practical Examples of Advisory Rights in Tilburg

Consider a mid-sized Tilburg manufacturing firm specializing in machinery facing declining orders. The employer plans to reduce staff by 20% and outsource production. Under Article 25 WOR, they must provide the OR with details on financials and job losses. The OR proposes alternatives, such as flexible hours instead of redundancies. If the employer proceeds without convincing justification, the OR can escalate to court, often resulting in adjustments or better transition arrangements for Tilburg employees.

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