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From January 1, 2025, a major change in employee representation will take effect: the current Market I and Market II joint sectoral committees will be replaced by a single, unified joint sectoral committee under the Social and Economic Council (SER). What impact will this have on works councils, employee representation bodies, and directors? This blog explains the reasons behind this change and its practical implications for employee participation.
A joint sectoral committee is an independent body that assists works councils, employee representative bodies, and directors with issues and disputes concerning employee participation. It can mediate conflicts between a works council or employee representative body and a director and provides advice on compliance with the Works Councils Act (WOR). Joint Sectoral Committee Market I focused on employee participation issues and disputes in commercial organizations. Joint Sectoral Committee Market II dealt with organizations in healthcare, welfare, education, culture, and sports. The change from January 1, 2025, means that these committees will merge into one single joint sectoral committee serving all sectors.
According to the SER, combining the committees is a logical step following an evaluation of practice since 2010. Previously, the committees were divided by sector, but this approach proved ineffective in practice. Mediation cases submitted to the committees rarely require sector-specific expertise and typically concern the relationship between the works council/employee representative body and the director, regardless of the sector. Additionally, the number of mediation requests has declined since it became no longer mandatory to approach the joint sectoral committee before proceeding to court.
These considerations led to the decision to establish a single general joint sectoral committee, making the system more streamlined and efficient for everyone involved in employee participation.
From January 1, 2025, a major change in employee representation will take effect: the current Market I and Market II joint sectoral committees will be replaced by a single, unified joint sectoral committee under the Social and Economic Council (SER).
It is important to note that this change does not affect the Joint Sectoral Committee for Government Bodies, which remains under the CAOP in The Hague. The new joint sectoral committee at the SER is exclusively for organizations in the private and non-profit sectors.
In day-to-day practice, little will change for works councils and employee representative bodies. They will continue to have access to advice and mediation in case of disputes. However, it is advisable to update any references in works council or employee representative body regulations from “Market I” or “Market II” to simply “the joint sectoral committee.” This ensures that regulations remain up-to-date and avoids potential misunderstandings in the future.
Updating your regulations might also be a good opportunity to review the entire document to ensure it is current and meets the work council/employee representative body needs.
Do you have questions about what this change means for your organization, or would you like advice on drafting or updating an works council or employee representative body regulation? Or do you have other questions about employee participation? Feel free to contact Thomas Catersels, Attorney at law, Employment & Employee Participation, or one of our other specialists in the Employee, Employee Participation & Mediation team!
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