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Costs of Engaging an Expert by the Works Council

Section 22 of the WOR prescribes that any expenses reasonably required for the performance of the duties of the Works Council shall be borne by the employer. Subsection 2 of that Section adds that the costs of consultation of an expert by the Works Council shall be borne by the employer only if he was given advance information on the costs to be incurred.

A dispute that was recently heard by the Subdistrict Court in Delft concerned a situation in which the employer, after completion of the advisory procedure, refused to pay (part of) the costs because in his opinion the Works Council had not timely informed him of the expected costs, and he had not consented to the amount of the costs either.

The Facts

At the end of January 2008 the employer presented a request for advice to the Works Council about the projected transfer of a branch office to a third party. Two months later, on 1 April 2008, the Works Council requested an expert to advise it about this request for advice. That same day the Works Council informed the employer thereof and of the (expected) costs involved. The employer's only reply was that he wished to receive an advice from the Works Council on 14 April 2008. In view of the time pressure this caused, the expert engaged started his assignment immediately. The Works Council still forwarded an offer stating the costs of the expert on 16 April 2008, but this was not replied to.

However, after the advisory procedure had been completed, the employer refused to pay (part of) the costs, since the Works Council had not informed him of the expected costs in time and he had not given consent for the amount of the costs either.

Decision of the Subdistrict Court

In the adjudication of the dispute the Subdistrict Court considered that the idea behind Section 22 of the WOR is that the employer must be able to object to the necessity of engaging an expert or to the amount of the costs.

Since it was established in this case that the Works Council did inform the employer, that the employer saw not reason to object on that occasion, not even after receiving an offer on 16 April 2008, and that the employer did pay part of the invoice, the Subdistrict Court ruled that the employer cannot take the position later that it will not pay the costs because the Works Council had failed to inform it of the amount of the expected costs in time.

Tips
  • Employers should explicitly inquire after the amount of the costs before giving their consent to engage an external expert. If they do not receive this estimate (or not in time), it is advisable to inform the Works Council in writing that the employer does not intend to pay the costs. This way unnecessary misunderstandings are avoided.
  • Pursuant to Section 22 (3) of the WOR, it is also possible to make arrangements with the Works Council about the costs as described in Section 22 of the WOR. For example, the parties may agree to have a certain budget per year available for the engaging of external experts, which the Works Council is free to spend at its discretion, and that any costs above this budget shall only be payable by the employer if the employer gives his explicit consent.
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Ester Damen

Tel: +31 20 5506 667
E-mail: ester.damen@kvdl.nl

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