The Law toath terbeschikkingstelling of workers (WTTA) is supposed to curb abuses in the staffing industry, but, according to critics, threatens to grow into a huge bureaucratic web. During the plenary debate of this extensive bill on March 12, it became clear that Chamber members were divided on the balance between market regulation and the protection of migrant workers.
Admitting Authority in its own ministry
Minister Van Hijum defended the bill by pointing to ongoing explorations within the Ministry of Social Affairs and Employment (SZW). He emphasized that the admitting authority (TI), which oversees enforcement of the law, will be a new directorate within the ministry. Regarding enforcement during the transition period, Van Hijum stated that the TI will be, if all goes well, intends to pick up alerts and address abuses as early as 2028 when they are evident. A more comprehensive Cabinet response to the House of Representatives' concerns will follow within two weeks.
WTTA: from initiative to legislation
The WTTA was born out of a desire to better regulate the staffing industry and protect migrant workers. An important driver is the now widely supported report of the Roemer Commission on the position of labor migrants. The law introduces an admission requirement for labor intermediaries and employment agencies, whereby only certified parties may mediate personnel. This should counteract sham constructions, underpayment and poor housing.
Regulatory pressure
Although the objectives are widely supported, there is including from industry associations and market participants much criticism of the impact on the sector. Also hhe Advisory Committee on Regulatory Burden (ATR) also also pointed out in January to that the administrative burden and compliance costs are rising sharply. According to their calculations, the additional regulatory burden leads to an annual cost increase of 143 million euros for companies in the sector. This raises questions about the proportionality of the measures, the broad scope, regulatory burden and impact on the mediation sector.
What does this mean for the market?
The introduction of the WTTA dramatically changes the playing field for job placement services. The industry must consider:
- A mandatory admission scheme, whereby employment agencies, intermediaries and secondment agents are checked before they are allowed to operate.
- Mandatory security deposits, intended to prevent abuse, but at the same time are a barrier for smaller entrepreneurs.
- Intensified enforcement, with a greater role for the Labor Inspectorate and the new admitting authority (TI).
At the same time, the bill raises questions about feasibility, costs for companies and impact on the labor market. How to avoid that stricter rules lead, security deposits and higher implementation costs will have too much impact on bona fide companies, without actually improving the position of vulnerable migrant workers?
The discussion on the WTTA will continue to flare up in the coming months. In the week of March 24, the plenary debate will continue and in April 2025, the House of Representatives will receive a comprehensive letter from Van Hijum.
HeadFirst Group closely follows these developments and remains in conversation with MPs, policymakers and market participants
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Sem Overduin
Public Policy & Affairs Manager
Sem.Overduin@headfirst.nl
Oifik Youssefi
Public Affairs Officer
Oifik.Youssefi@headfirst.nl
Maaike van Driel
Head of Legal
Maaike.vanDriel@headfirst.group
Thomas ten Veldhuijs
Senior Legal Counsel
Thomas.tenVeldhuijs@headfirst.nl