New law regarding admission system for temporary employment agencies

April 8, 2024 - The Dutch government announced the plan to introduce an admission system for temporary employment agencies. If adopted by the Dutch parliament, the “Wet toelating terbeschikkingstelling van arbeidskrachten” will entry into force in 2026. What does this new system mean and what are the associated conditions?

Why a new system?

Currently, there are several employment agencies active on the Dutch market that abuse vulnerable groups, such as migrant workers. For example, they receive a wage that is too low and have to sleep in poor conditions. In addition, they often work in dangerous places with insecure contracts. Malicious employment agencies create a financial advantage in this way, which results in unfair competition between employment agencies.

The new proposed law " Wet toelating terbeschikkingstelling van arbeidskrachten" should ensure that by January 1, 2026 only authorized temporary employment agencies are allowed to hire out personnel. This means that the employment agency must be admitted to the Dutch market. Companies (customers) using temporary workers will only be allowed to hire workers through an authorized agency.

What do hirers have to comply with to be admitted

In order to be admitted to the Dutch market as an employment agency, a set of conditions must be met. This applies both for Dutch and foreign employment agencies.

The conditions are as follows:

1. A certificate of good conduct ( so-called VOG) for the legal entity;

2. A bank guarantee of € 100,000;

3. Being compliant with labour law and social security legislation and proving this via an inspection report (equal work, equal pay); and

4. Demonstrate that they properly pay wages and taxes.

Employment agencies will periodically be checked whether they comply with the rules. The Dutch Labour Inspectorate will enforce the new legislation.

Preparation

It is important to prepare your company on time for the new legislation. If adopted by the parliament, the new legislation will enter into force per January 1, 2026. However, temporary employment agencies will be stimulated to apply for the admission before July 1, 2025 and obtain the NEN 4400-1 or 2 certificate before this date. This means that they will be taken up in the register for the Stichting Normering Arbeid (SNA). Being certified before July 1, 2025 means that the transitional period applies.

Conclusion

The admission system is far-reaching and will create additional rules for temporary employment agencies to be compliant with. However, the government considers its introduction inevitable in order to effectively tackle abuses in the temporary employment sector. When you are not taken up in the register of the SNA yet, it is important to prepare your company on time by obtaining the NEN 4400-1 or 2 certificate. We are happy to advise you about this.