The Works Council’s Right of Approval in (International) Group Relationships, TRA 2026/26

1. Introduction

In (international) corporate group relationships, decisions are often made by group management and subsequently implemented across the entire group. These may involve decisions subject to consultation or approval. Because the Works Council is affiliated with the (Dutch) subsidiary, it generally has no right of participation with regard to decisions made by group management. This can lead to an erosion of employee participation. With regard to the right to be consulted and the right of appeal, there is extensive case law on the role of the Works Council in (international) group relationships. Less attention is paid to the right of consent, even though group-related issues also arise in practice with regard to social decisions. For example, remuneration schemes are frequently established for the entire group. In this article, I discuss the right of consent in (international) group relationships.