What is a Works Council (OR) and why is it important for your company?

Daniela
Sep 30, 2025
2 min read

What is a Works Council (OR) and why is it valuable for your company?

Many companies in the Netherlands have a Works Council (OR), but not everyone knows exactly what they do—or why they matter. Is a Works Council just an extra layer of bureaucracy? Or does it bring real benefits for the business?

In this blog, you’ll learn what a Works Council is, what their tasks are, and why every organization can benefit from having one.

What is a Works Council?

A Works Council is a group of employees elected to represent staff in discussions with management. Their purpose is to give employees a voice in decisions that affect both staff and the organization.

In the Netherlands, companies with 50 or more employees are legally required to have a Works Council. Smaller organizations may set up a council or staff representation voluntarily.

The Works Council has a say in important topics such as:

Company reorganizations and mergers
Employment conditions and working hours
Health, safety, and wellbeing at work
Sustainability and future-proof business practices

By addressing these issues, the Works Council helps companies function more effectively and responsibly.

What does a Works Council do?

The Works Council has three main rights that give it influence on company policy:

Right of advice - For strategic decisions such as mergers or reorganizations, management must request advice from the Works Council. While the advice doesn’t have to be followed, management must justify if they decide otherwise.

Right of consent - For regulations such as working hours, employment conditions, or absenteeism policies, the Works Council has the right of consent. Employers cannot implement changes without OR approval.

Right of initiative - The Works Council can put forward its own proposals to improve the workplace or business processes. This gives employees an active role in shaping the organization.

Why is a Works Council beneficial for a company?

A Works Council is not just about compliance—it also creates clear advantages for the organization:

Better decision-makingPlans are more realistic and easier to implement when employees are involved, reducing resistance to change.
Higher engagement and motivationEmployees feel valued and heard, leading to stronger commitment and lower turnover.
Stronger employer–employee relationsOpen dialogue between staff and management reduces misunderstandings and builds trust.
A future-proof organizationBy addressing workload, inclusion, and sustainability, the Works Council helps companies stay successful long-term.

Conclusion: A Works Council is not a hurdle, but an opportunity

Some businesses see a Works Council as time-consuming or complicated. In reality, it’s a powerful tool to build stronger, more sustainable organizations. By working well with the Works Council, companies can make better decisions, strengthen employee commitment, and grow responsibly.

Are you curious how to get the most out of your Works Council? Let’s talk.

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Organizing training sessions, team-building days, or company events often takes a lot of time and energy. With ZR-Company, you get full support- from creative advice and expert facilitators to complete event management.

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