15 February 2018

Companies must discuss remuneration with works council

On 23 January 2018, the Second Chamber of the Dutch parliament voted in favour of a bill amending the Works Councils Act. The bill extends works councils’ right to information about remuneration levels at the company, including top executive salaries. When the new act enters into force, management will need to discuss pay ratios and differences in remuneration with the works council at least once a year, during a consultation meeting. Companies do not have to provide salary information on individual executives or employees. Nor will the works council gain greater influence on the decision-making process about remuneration levels.

This article is only available in Dutch, click here to read it.