Senate Approves Stricter Rules for the Temporary Employment Market

The Senate has passed the Admission Act for the Provision of Workers (Wtta). Temporary employment agencies and other companies may only lend workers if they have a permit. The law aims to better protect employees, especially labor migrants, and ensure fair competition among companies.

Minister Mariëlle Paul of Social Affairs and Employment: “All labor migrants have the right to fair, healthy, and safe work. With this law, we take a big step forward. Only temporary employment agencies with a permit will be allowed to lend workers and labor migrants. This improves the position of labor migrants and ensures a level playing field for all agencies.”

The law will come into effect on January 1, 2027. Companies that want to continue lending workers must register with the Dutch Temporary Employment Market Authority (NAU) before that date. On January 1, 2028, the Dutch labor inspectorate will start enforcement. Lenders operating without a permit will receive a fine. This fine also applies to companies using temporary employment agencies, the so-called hirers.

To gain access, lenders must submit a certificate of good conduct (VOG) and transfer a deposit of €100,000. They must also prove compliance with existing laws and regulations, such as paying the statutory minimum wage. Only then can they receive a permit to lend workers.

Implementation of the law

The implementation of the law is entrusted to the Dutch Temporary Employment Market Authority. The NAU decides on the admission of lenders. It also collects signals from the market and advises on improvements. Additionally, the NAU appoints inspection bodies that check whether lenders comply with all laws and regulations. The NAU will start its first activities from 2026, such as appointing inspection bodies and opening the registration desk for lenders.

This law is an important recommendation from the Task Force for the Protection of Labor Migrants (Roemer). Besides this law, the cabinet has taken several other steps. For example, the Dutch Labor Inspectorate has been expanded by 135 FTE to increase the chance of detection. Help desks have also been opened in various locations to assist labor migrants with questions or problems. More help desks will be added in the coming period. There is also a law before the Senate to make it easier to prosecute serious mistreatment of labor migrants criminally.