Admission system for temporary employment agencies on the way
The Dutch government is taking an important step towards better protection for workers and fairer competition in the temporary employment sector. On 23 January 2025, the Minister of Social Affairs and Employment, Y.J. van Hijum, informed the House of Representatives about the progress of the Act on the Admission of Temporary Workers (Wtta). This Act aims to tackle rogue employment agencies and support bona fide entrepreneurs by introducing an admission system for temporary employment agencies.
Why this law?
The Netherlands has been experiencing structural problems in the temporary employment and labour supply sector for years. Underpayment, poor housing and tax evasion are no longer isolated incidents, but persistent practices that mainly affect migrant workers and other vulnerable groups.
At the same time, honest temporary employment agencies and users are under pressure because they cannot compete with the low prices and illegal practices of unscrupulous competitors. According to the minister, this is a “race to the bottom” in which companies that play by the rules are being driven out of business.
What does the Wtta entail?
The core of the bill is the introduction of an authorisation system for temporary employment agencies. Only companies with official authorisation will be allowed to supply personnel. The most important elements of the system are:
- An authorisation requirement for temporary employment agencies and other suppliers of personnel.
- Periodic inspections by private institutions.
- Increased public supervision and the ability to sanction users who work with unauthorised agencies.
- A central implementing body, the Authorising Authority (TI), which will be housed within the Ministry of Social Affairs and Employment.
The Authorising Authority (TI): the hub of the system
The AI will take decisions on behalf of the minister regarding the admission, suspension and withdrawal of temporary employment agencies. In doing so, it will work together with the Labour Inspectorate and the Tax and Customs Administration, among others. From the outset, the AI must be a robust, independent and strategically operating organisation. Its structure has been in preparation since 2023 by a team of pioneers, and the final organisation is now being put in place.
Implementation and planning
Although an exact date for entry into force has not yet been set, it is clear that the Minister wants to move quickly. At the same time, caution is essential, given the complexity of the task and the lessons learned from previous government projects. For example, extra attention will be paid to checks and balances and to the proportionate treatment of both new and existing lenders.
Costs for lenders: manageable and proportionate
An important point of concern is the costs that lenders will have to incur for admission. The Minister emphasises that the system will be designed in such a way that:
- Costs may not exceed the actual implementation costs.
- There will be differentiation according to company size, so that small lenders pay less than large ones.
- Social partners will be involved in determining fees and standards.
- Inspection costs may be capped if necessary.
The letter to parliament includes scenarios that provide insight into the possible level of administrative fees (admission fees).
In anticipation of the law: supervision will continue
The Minister has announced that he will continue to focus on tackling abuses even before the Wtta comes into force. The Labour Inspectorate will be expanded and there will be close cooperation with sector organisations such as SNA and SNCU to make agreements on enforcement and data exchange in the short term.
Conclusion
The Wtta is an important step towards a fairer labour market. Not only will malpractice be tackled more vigorously, but good entrepreneurs will also be given the opportunity to distinguish themselves in a fair manner. The government’s commitment is clear: the admission law must be implemented as quickly as possible, but with due care. The protection of migrant workers and the strengthening of enforcement will remain central to this.
