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Dutch Works Council Act (Right Of Advice)

Dutch Works Council Act (Article 25 paragraph 1) (Right Of Advice)

Pursuant to Article 25 paragraph 1 of the Dutch Works Council Act the employer is obliged to request the advice of its works council in advance, in case of an intended decision regarding, among others:

  • transfer of control of the company or a part thereof;
  • establishment, take-over or relinquishment of control of another company, or entering into or making a major modification to or severing a permanent co-operative venture with another company, including entering into or effecting major changes of or severing of an important financial participation on the account of or for the benefit of another company;
  • termination of the operations of a company or a major part thereof;
  • major reductions or expansions or other changes to the company;
  • major changes in the organisational structure of the company or in the allocation of powers within the company.

The advice must be requested within a reasonable time frame to allow the works council to have a say in the decision that is to be taken. The request for advice must include a summary of the reasons for the decision, the expected consequences (if any) and the measures proposed in response. The works council cannot issue its advice until the matter has been discussed in at least one consultation meeting. If, after the advice has been issued, the employer decides to go through with the planned decision, it must inform the works council accordingly in writing.

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