The works council (OR) plays an active and legally enshrined role in strategic workforce planning. Under the Works Councils Act (WOR), the Works Council has both the right to be consulted and the right of consent, depending on the type of decision the employer wishes to take. This makes the Works Council a fully-fledged partner in discussions regarding decisions on the future of the workforce. In this article, we answer the most frequently asked questions about the Works Council’s powers in this area.
What powers does the Works Council have in relation to staff policy?
The Works Council has two main powers in relation to personnel policy: the right to be consulted and the right of consent. The right to be consulted applies to strategic and organisational decisions, such as reorganisations or mergers. The right of consent applies to arrangements that directly affect employees’ working conditions and social policy. Together, these powers give the Works Council a strong position within the organisation.
In addition to these two rights, the works council also has the right to information. The employer is obliged to inform the works council in a timely and comprehensive manner about any plans that affect the workforce. This right to information forms the basis on which the works council can effectively exercise its other powers.
The Works Council’s powers are not merely advisory. They are laid down in the WOR and give employees, through their representatives, a formal say in how the organisation approaches strategic workforce planning. This provides a valuable safeguard for a fair and transparent human resources policy.
When does the Works Council have the right of consent in relation to staff planning?
The Works Council has the right of consent in relation to staff planning where the employer wishes to introduce, amend or withdraw a scheme relating to working conditions, working hours, remuneration systems, appraisal systems or schemes concerning training and development. The employer may not implement such arrangements without the Works Council’s consent.
In practical terms, this means that the Works Council has the right of consent in relation to, amongst other things:
- Introducing or amending an appraisal or performance management system
- Arrangements regarding working hours and timetables
- Policy on staff training and personal development
- Systems for staff monitoring or performance measurement
- Regulations relating to working conditions
The right of consent is a powerful tool, as if the works council refuses, the employer must go to court to obtain authorisation. The works council may also grant consent subject to conditions, which provides scope for negotiation and for improving the proposed arrangements.
What is the difference between the Works Council’s right to be consulted and its right of consent?
The difference between the right to be consulted and the right of consent lies in the extent of influence the works council has. Under the right to be consulted, the works council provides a well-reasoned opinion on strategic decisions, but the employer may disregard this opinion provided they give proper reasons for doing so. Where the right of consent applies, the employer may not implement a decision without the Works Council’s approval.
Right to be consulted: strategic decisions
The right to be consulted applies to decisions of an organisational or financial nature, such as a reorganisation, a takeover, the closure of a branch or a significant change to the organisational structure. The employer must seek the Works Council’s advice in good time, so that the advice can still have a substantive influence on the decision. If the employer deviates from the advice, they must provide written reasons for doing so, and the Works Council has the right to lodge an appeal with the Enterprise Chamber.
Right of consent: arrangements for staff
The right of consent applies to arrangements that directly affect employees’ day-to-day working conditions. In this regard, the Works Council has a much stronger position: without its consent, the arrangement is simply not valid. This makes the right of consent a powerful tool for protecting employees’ interests in the implementation of strategic workforce planning.
How can the Works Council actively influence strategic workforce planning?
The Works Council can actively influence strategic workforce planning by proactively engaging in dialogue with the employer, carrying out its own analyses based on the information provided, and making specific proposals regarding personnel policy. The Works Council does not need to wait for the employer’s plans, but can take the initiative itself on the basis of its right of initiative.
Practical ways in which the Works Council can exert influence:
- Exercise your right of initiative: The Works Council is entitled to put forward its own proposals on matters affecting staff, such as career policy or development opportunities.
- Ask specific questions: Ask the employer to explain any plans that have not yet been formally put forward but are in the pipeline.
- Seek external expertise: The Works Council may call upon experts to assess complex plans.
- Make use of consultation meetings: Use the mandatory consultation meetings to ensure that strategic HR issues are systematically included on the agenda.
- Work together with HR: Good cooperation with the HR department makes it possible to be involved in planning at an early stage of the process.
A works council that actively contributes ideas on strategic workforce planning helps to ensure a future-proof HR policy that benefits both the organisation and its staff.
What information must the employer provide to the works council?
The employer is obliged to provide the Works Council with all the information necessary for it to carry out its duties properly. This includes, at the very least, annual information on the company’s financial situation, its social policy, expected staff developments and working conditions. In the case of specific decisions, the employer must provide additional information relating to that decision.
In practical terms, strategic workforce planning involves information such as:
- Forecasts of short- and long-term staffing requirements
- Plans relating to the recruitment, retention and departure of staff
- Proposed changes to roles or the organisational structure
- Policy on training, development and career opportunities
- Information on the use of external staff or temporary staff
The Works Council is always entitled to request further information if it considers that the information provided is insufficient to enable it to form a well-considered position. A transparent exchange of information forms the basis for constructive cooperation between the employer and the Works Council.
What happens if an employer ignores the works council when planning staff rota?
If the employer disregards the Works Council in staff planning, the Works Council has legal means to raise this issue. In the event of a breach of the right to be consulted, the Works Council may lodge an appeal with the Enterprise Chamber, which may suspend or overturn the decision. In the event of a breach of the right to consent, the Works Council may take the matter to the magistrates’ court, which may declare the arrangement null and void.
As well as legal consequences, there are also practical implications. An employer who systematically sidelines the works council undermines trust within the organisation and risks employees feeling less engaged with the company’s direction. Effective strategic workforce planning, however, requires support, and that support begins with a works council that is taken seriously.
In practice, consulting the works council at an early stage leads to better decisions and smoother implementation. Employers who view the works council as a partner rather than a formality find that strategic workforce planning is carried out more effectively and is better aligned with the reality on the shop floor.
How Nieuwkans helps with strategic workforce planning
At Nieuwkans, we support organisations and employees in shaping sustainable careers and future-focused HR policies. We always take a bespoke approach, ensuring our guidance is tailored to the specific circumstances of your organisation and staff. Whether it’s career development, coaching or identifying talents using scientifically proven methods such as BrainsFirst, we’re here to provide practical support.
What we can do for your organisation:
- Personal coaching for staff who wish to explore or advance their careers
- Leadership and team development aligned with the organisation’s strategic objectives
- Career programmes which help staff to remain employable in the long term
- Outplacement and second-track support with an eye for the person behind the file
- BrainsFirst assessments to provide insight into natural talents and cognitive behavioural preferences
Would you like to know how we can support your organisation with strategic workforce planning? Contact us and we’ll explore the options together. If you’d like more information about career development and long-term employability, please also visit Skillscapers.