Yesterday (June 21, 2016) the Dutch Lower House (Tweede Kamer) approved a legislative proposal to amend the Dutch Bankruptcy Act (Faillisementswet).
This legislative proposal provides that the works council or staff representatives of the company must be involved in the ‘silent preparation phase’ (stille voorbereidingsfase) prior to the bankruptcy, unless business interests do not allow for this involvement.
In addition, it will be arranged that, during the remaining phase of the foreseen bankruptcy, a representative of the employees will be appointed as member of the temporary committee (voorlopige commissie van schuldeisers) that is set by the court for the declaration of bankruptcy.
The purpose of this legislative proposal is to prevent the abuse of the Bankruptcy Act by discharging the employees after a relaunch in a fast and inexpensive way.
In addition, the legislative proposal intends to involve employees in the preparation of a bankruptcy and also provide them with the opportunity to render advice to the receiver (curator) on a sale and relaunch of profitable business units.
