All employees in the Netherlands have some form of terms of employment. But who decides and negotiates about these terms of employment? The Works Council also has a role to play in the negotiations of the terms of employment.
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Works Councils have the right to consent to several legally defined subjects dealing with terms of employment. Works Councils are increasingly involved in the negotiation of almost all terms of employment. However, there are still many companies that have a collective labour agreement. These collective agreements are the result of negotiations between employers and trade unions.
When does the Works Council play a role? And what exactly is that role? We will explain that in this article. First, we explain what terms of employment are, where they are laid down and who is negotiating about them. Next, we define the role of the Works Council and in which situations that role applies. We conclude with some tips for the Works Council.
what are terms of employment?
Terms of employment: a collective name for the agreements between the employee and the employer. The employee gives the employer 'employment' and the employer gives certain things in return, such as salary. In other words, we are talking about the 'conditions' or 'terms' for which an employee comes to work.
Terms of employment are agreements on salary, holidays, education facilities, etc. The term 'terms of employment' does not appear in the law. But we have agreed with each other what they are and who is negotiating about and deciding on them.
[su_spoiler title="primary and secondary terms of employment ↓"]
Primary terms of employment often means the most important terms of employment: the basis of the employee's contract. These include items such as salary, holiday allowance, profit benefits, the employee's position and hours of work. The primary terms of employment are about 'money'.
Secondary terms of employment, or benefits, usually means things such as leave arrangement, pension scheme, lease car usage, education facilities, laptop, smartphone, etc.
Sometimes we talk about tertiary terms of employment: things that are difficult to express in monetary value. These include company outings or parties, use of the company cafeteria, etc.[/su_spoiler]
where are the terms of employment recorded?
The agreements about the terms of employment are laid down in several documents:
- the Dutch Civil Code
- the 'CAO' (collective labour agreement)
- the terms of employment arrangement (AVR)
- the staff manual or staff regulations
- the employee's individual employment contract
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