The Dutch Supreme Court has ruled that works councils in the Netherlands have an advisory right with respect to any proposed decision to hire temporary workers on a group basis, irrespective of whether the hiring is a routine practice or a one-time occurrence, according to Lexology. The decision has major implications for hirers of temp workers. This also applies to hirers who make use of a platform or an employer of record (EOR) for the provision of temporary workers.

The case involves the online division of Dutch supermarket chain Albert Heijn (AH). About 90% of the approximately 9,500 temporary workers of AH are hired to fulfil online orders. AH conducts tender procedures with employment agencies every two years to secure the necessary workforce. These procedures establish framework agreements that determine the terms and conditions for hired workers. The dispute centred around whether the works council has an advisory right regarding the framework agreements.

The Enterprise Chamber of the Amsterdam High Court was of the opinion that the advisory right only applies when there is a deviation from the usual hiring practice. The Supreme Court took a different stance. The Supreme Court ruled that the works council does have advisory rights concerning the group hiring of temporary workers, regardless of whether it deviates from the usual practice. The ruling provides the works council with greater opportunities to influence hiring policies of companies and workforce composition within organizations, including the number of temporary workers hired. This may allow the works council to advocate for a certain percentage of permanent employees and to evaluate the effectiveness of such a policy when contracts are renewed.

Fiona Coombe, Director of Legal and Regulatory Research, said, “It will not prevent companies from hiring temporary workers but may slow up the tender process and influence the decision whether and to what extent businesses use temporary workers.”

Law firm Osborne Clarke stated, “The decision highlights the importance of involving the works council in decisions related to the group hiring of temporary workers. In the Netherlands, the works council's advisory process is a necessary step in the decision-making process for many types of decisions, including the one illustrated above.