A new bill, the Law on the Admission of the Supply of Workers (WTTA), will begin to be debated in the House of Representatives this year. This proposal brings with it an admission system for temporary employment agencies and other companies that make workers available to a third party to work under its management and supervision. The scope of the law is thus considerably broader than just the temporary employment sector. What exactly does it entail and what impact will it have on suppliers and clients?

The new regime requires that lenders be allowed to operate in the market only if they are authorized to do so under a new regime. To be admitted, they must meet several conditions:

• The company meets the standards framework by means of an approved inspection report provided by an inspection body designated by the Minister (article 12q Waadi);
• A Certificate of Good Conduct for legal entities is provided (Article 12o Waadi);
• The company deposits a deposit of €100,000 (Article 12p Waadi).

Hirers using temporary employment, secondment or payroll agencies, the so-called lenders, may only do business with agencies that have been admitted to the system by the Minister of Social Affairs and Employment. The Dutch Labor Inspectorate will supervise whether in- and on-borrowers actually work with authorized lenders and whether the lenders are authorized. Failure to comply with applicable laws and regulations can result in hefty fines, both for hirers, and hirers.

Transitional regime
The bill also provides for transitional law to encourage hirers - in the run-up to the entry into force of the obligation of admission on January 1, 2026 - to apply for admission no later than June 30, 2025, who already possess an SNA seal of approval. Companies that already have this seal of approval will be admitted on the basis of the SNA seal of approval, even if they have not yet been actually inspected on the basis of the new standards framework.

Implications for in- and out-workers
For suppliers who engage in the provision of labor, this bill represents a significant change in the way they operate. To remain active in the market, they will have to be admitted to this public system. Lenders will be audited periodically (probably twice a year) on the standards framework. This therefore requires compliance with laws and regulations, as well as the necessary investment in time and resources to meet all requirements. In- and on-lenders will be prohibited from doing business with lenders who are not admitted to the system. There will be a public register to verify that the hirer is actually admitted to the system.

In essence, the WTTA will change the dynamics of the Dutch labor market, with the goal of improving the position of migrant workers, keeping rogue broadcasters out of the labor market, and thus ensuring a level playing field for all buyers and sellers. It is important for both suppliers and clients to be well informed about developments regarding the WTTA. Needless to say, we at HeadFirst Group are preparing in a timely and adequate manner so that we can continue to provide our services.