Skip to content

Works Council Proceedings before the Enterprise Chamber: When Does the Works Council Win?

Introduction

When a works council considers that its advisory rights have been breached, the only recourse is to bring the matter before the Enterprise Chamber. That sounds like a heavy instrument, and it is. An analysis of 105 works council proceedings with full text shows that the works council is (partly) successful in roughly one in three cases. The remaining two thirds founder on admissibility thresholds, procedural hurdles, or the finding that the decision was not manifestly unreasonable. But those who know what the Enterprise Chamber looks for considerably improve their chances. Six patterns stand out.

The Dutch works council in international reorganisations

The most practically relevant theme is the position of the Dutch works council in reorganisations directed from abroad. The line is clear: a group strategy carries weight, but not necessarily decisive weight. The local subsidiary must make an independent weighing of interests and inform the works council about it.

In the Micro Focus case, the Enterprise Chamber put that sharply once more in 2025. In its reorganisation, Micro Focus referred to the global Business Optimization Plan. When the works council asked questions about the impact on the Netherlands, it consistently replied that this was "difficult to answer" and "part of the bigger picture". The Enterprise Chamber made short work of this: organising internally along functional rather than geographical lines does not relieve the entrepreneur of the obligation to give the works council insight into the independent weighing of interests for the Dutch enterprise.

That line builds on the Watts Industries case, in which the Enterprise Chamber held that a group subsidiary may not confine itself to merely passing on a parent-company decision. And in the Uniface case, a PE acquisition by Marlin Equity, the entire advisory process proved to be a sham: the signing protocol had already been signed before advice was requested. The Enterprise Chamber granted the full package of measures, including provisional enforceability.

With Spotify and Atlassian the pattern was similar. Spotify decided from Stockholm to downsize the Dutch team without consulting the works council. The fact that 11% of the workforce was affected was sufficient for a "significant reduction" within the meaning of Section 25(1)(d) of the Works Councils Act (WOR). Atlassian attempted to frustrate the proceedings by withdrawing the decision while the appeal was pending and replacing it with a new decision. That did not succeed: the Enterprise Chamber held that the withdrawal did not render the proceedings superfluous. The line is also confirmed in Nalco/Delden, ERS Railways and Canon Europa.

A particular risk lies in co-entrepreneurship. A shareholder who systematically determines essential entrepreneurial policy may be regarded as a co-entrepreneur and thereby be bound by the advisory right itself. In the Seaway Heavy Lifting case, the Enterprise Chamber held that an advisory instruction to Goldman Sachs to explore a transfer of shares was subject to the advisory right on the basis of Section 25(1)(n) WOR. But the works council must raise that argument in good time: in the Martinair case, the reliance on KLM's co-entrepreneurship was raised for the first time in the petition, and that was too late.

Political primacy: an impregnable fortress

With public-sector organisations, the works council runs into Section 46d WOR: decisions that flow from public-law tasks are excluded from the advisory right. In twelve cases political primacy was invoked, and in all twelve it held. The works council has not won once against this defence.

Its scope is broad. In the Politie ZSM case, the choice of a ZSM location fell under political primacy because it concerned the organisation of the police task. The Supreme Court confirmed that. In the GOR Rijk/Fellenoord case, the same applied to the housing of central-government civil servants, likewise confirmed on cassation. And in the IND case, the Enterprise Chamber extended political primacy from the decision in principle to the specific number and choice of location of the family centres, because these were inextricably linked to immigration policy.

A supra-statutory advisory right on the basis of Section 32 WOR offers no relief. In the Gemeente Maastricht/SSC-ZL case, the Enterprise Chamber held that a supra-statutory advisory right does extend the advisory right, but does not create a right of appeal to the Enterprise Chamber where political primacy applies. The Supreme Court confirmed that (Supreme Court judgment Gemeente Maastricht). Under political primacy, the only participation left to the works council concerns the staffing consequences of the decision (Gevangeniswezen (Prison Service) case, Diemen/DUO+ case, Gemeente Alphen aan den Rijn case).

The duty to give reasons as a stumbling block

What entrepreneurs most often stumble over is not overriding the works council, but the reasoning of the decision. Section 25(5) WOR requires the entrepreneur, when departing from the works council's advice, to state in writing why the objections are not adopted. The Enterprise Chamber reviews this concretely and strictly.

In the Teijin Aramid case, the entrepreneur had been unable to explain why exactly 22 FTEs had to be cut. The Enterprise Chamber was unrelenting: a party that cannot substantiate a decision takes a manifestly unreasonable decision. That also applies to decisions of principle. In the KNAW case concerning the termination of non-human primate research, the Enterprise Chamber held that a decision of principle does not exempt a party from a concrete weighing of interests that does justice to the consequences for staff.

The duty to provide information under Section 25(3) WOR works in the same direction. In a phased reorganisation, the entrepreneur must make clear what the staffing consequences are, including for later phases. In the Provincie Zuid-Holland case, an as-is/to-be table was missing. The Enterprise Chamber held that phasing may not lead to an information deficit. It confirmed that line in Standard Aero/Tilburg, where the entrepreneur categorically refused to answer the works council's questions, and in AkzoNobel Deventer, where the multi-year staffing consequences remained unclear.

When is a decision subject to the advisory right?

The classification of a proposed decision as subject to the advisory right under Section 25(1) WOR is a battlefield. The Enterprise Chamber sometimes draws surprisingly broad, sometimes strict boundaries.

On the broad side: the abolition of a single management function may be subject to the advisory right if the consequences for the organisation are significant. In the Insight case, the abolition affected seventy employees and constituted a "significant change in the organisation". And an advisory instruction to explore a transfer of shares may fall under Section 25(1)(n), even if it is formally not a decision to transfer (SHL/Goldman Sachs). Governance restructurings too may be subject to the advisory right. In the NS/Abellio case, NS Groep restructured the board of its subsidiary Abellio after the Limburg fraud scandal: a Shareholder Committee, Reserved Matters, hierarchical reporting lines and ten joint working groups. NS Groep argued that this was an internal Abellio matter. The Enterprise Chamber held that the restructuring was driven by group-wide interests, restoring trust, arrangements with the Ministry of Finance, and was therefore a decision "of" NS Groep that fell, as a "significant change in the organisation and the allocation of powers", under Section 25(1)(e) WOR (NS/Abellio governance restructuring (2016)).

On the strict side: a productivity measure that costs no jobs is not subject to the advisory right. The Enterprise Chamber so held in the KLM case concerning the -1CA measure. And in the event of bankruptcy, the advisory right is in principle incompatible with the task of the trustee in bankruptcy, as the Enterprise Chamber decided in the DA Retailgroep case. The Supreme Court confirmed that (Supreme Court DA Retailgroep (2017)).

Fait accompli and phased decision-making

Two related patterns almost always lead to the appeal being upheld. The first is the fait accompli: the entrepreneur implements the decision before advice has been requested or awaited. In the Reinier Haga case, the new situation was already a fact when the works council was asked for advice. The Enterprise Chamber held that a fait accompli is by definition manifestly unreasonable. In the Fundis case, the decision was defensible in itself, but was implemented without the conditions precedent having been fulfilled, with the same result.

The second pattern is phased decision-making that renders participation illusory. Phasing is permitted, but the entrepreneur may not confront the works council with a bare request for advice in outline when the essential elaboration is missing. In the NCRV/KRO merger, the later phase no longer offered a genuine moment for advice and the merger decision had to be withdrawn. In the Abeos Agri case, the Enterprise Chamber held that an SLA, as an implementing decision, may itself be subject to the advisory right. But earlier advice offers no perpetual protection: a party that later takes a materially different decision must seek advice again (Canon/Utility Hosting).

The Enterprise Chamber's arsenal

When the works council wins, the standard package is a withdrawal of the decision combined with a prohibition on implementation. But the Enterprise Chamber differentiates. Where there is a continuity risk, a declaratory judgment may suffice without far-reaching measures, as in the Brink's case. Where the interests of third parties are at stake, trade unions that have already concluded an agreement, Section 26(5) WOR blocks further-reaching measures (APM Terminals, TopCraft/Dinkelland).

A striking pattern: a manifestly unreasonable decision does not automatically lead to measures. In the Martinair case, the financial substantiation was missing, but KLM had by then provided a loan commitment that mitigated the risk. That was enough to refrain from imposing measures. And in the Assa Abloy case, the defect was remedied because the entrepreneur went through a full advisory process after all. The lesson: a party that remedies a mistake in good time can still start with a clean slate.

Review by the Supreme Court: works council proceedings

Of the four Supreme Court judgments on works council proceedings before the Enterprise Chamber, one involves cassation. In 2017 the Supreme Court held that the advisory right of the works council under Section 25 WOR in principle also applies during bankruptcy: the trustee in bankruptcy must seek the works council's advice on decisions aimed at a going-concern restart preserving employment. That obligation does not apply to the sale of assets in the context of liquidation. For political primacy (Section 46d WOR), it is relevant not only which body takes a decision, but also what the nature and content of the decision are, a public-law task shifts the advisory obligation. In joint ventures, the Supreme Court assesses group affiliation functionally: not the shareholding percentage but the actual control is decisive.

What does this mean in practice?

The works council does not often win before the Enterprise Chamber, but when it does, this is usually on predictable grounds. The three most important are: entirely overriding the works council on a decision subject to the advisory right, deficient reasoning that does not concretely address the works council's objections, and creating a fait accompli by implementing the decision before the advisory process has been completed.

For entrepreneurs in an international group: the group strategy does not justify the Dutch subsidiary fobbing off the works council with a reference to the global plan. A party that skips the independent weighing of interests or fails to answer the information questions loses before the Enterprise Chamber. For the public sector, political primacy offers almost absolute protection, but only for the decision itself, the staffing consequences remain subject to the advisory right.

And for the works council: a party that wishes to improve its chances must formulate its objections concretely and in good time, not sit back and hope that the proceedings will expose the defects. The Enterprise Chamber holds it against the works council if it advises too late, fails to make its objections concrete, or raises arguments only in the petition that it should have brought forward during the advisory process.

A full reference overview contains all 105 decisions organised by theme, with a Leading/Confirming classification.