On April 15, 2025, the House of Representatives passed with a broad majority approved the Workforce Provision Admission Act (WTTA). This law introduces a mandatory admission system for all companies that provide labor, such as temporary employment agencies and secondment agencies. Contrary to what is sometimes thought, the WTTA is not exclusively aimed at temporary workers, but applies to all parties that are subject to the Wet allocatie arbeidskrachten door intermediairs (WAADI).n.

What does the WTTA entail?

The WTTA aims to improve the quality and reliability of labor intermediation services by introducing an authorization requirement for companies that provide labor. These companies must meet specific standards and may only engage in the provision of labor if they are admitted to the system. The aim is to combat rogue practices and strengthen the position of workers, especially migrant workers.

Timeline of the bill

  • 2021-2022: The first contours of the WTTA are outlined, partly in response to reports on abuses in the staffing industry involving migrant workers.
  • 2023: The bill will be prepared and put into consultation, where stakeholders can provide input.
  • 2024: After processing the consultation responses, the bill will be submitted to the House of Representatives.
  • April 8, 2025: The House of Representatives votes on several amendments and motions related to the bill. Major proposed amendments include:
  • Exceptions to the admission requirement for specific sectors, such as social work companies and certain educational institutions.
  • Minister's ability to deny or revoke admission in cases of convictions for employment discrimination.
  • A duty of care for correct registration of workers in the Basic Registration of Persons (BRP).
  • A maximum rate for the annual dues payable by lenders to the Permitting Authority set at €3,611.
  • An accelerated review of the law after three years instead of five.
  • Focus enforcement by the Labor Inspectorate primarily on sectors where abuses involving immigrant workers are demonstrably known.
  • April 15, 2025: The House of Representatives approves the WTTA.

Impact on lenders


Within the WTTA, lenders may provide labor only if they have obtained authorization from the Minister of Social Affairs and Employment. To obtain this authorization, lenders must meet strict requirements, including the submission of a Declaration About conduct (VOG) and the provision of a financial borgsum of €100,000. Companies that use employment agencies, known as hirers, may only do business with employment agencies that are admitted to the market. A new admitting party, within the ministry of SZW, will make decisions about the admission of temporary employment agencies on behalf of the minister. This party can also suspend temporary employment agencies and revoke an admission in case of serious abuses.

Critique

Although the WTTA has broad political support, there has also been strong criticism, particularly about the law's increasing regulatory burden and broad scope. For example, warned the Advisory Committee on Regulatory Burdens (ATR) in early 2025 that the annual regulatory burden resulting from the WTTA could reach as much as 143 million euros. This amount comes from mandatory administrative burdens, such as obtaining inspection reports, holding financial securities, and application procedures for admission. In addition, there is concern about the scope of the law, which affects not only temporary employment agencies, but also other forms of employment mediation under the WAADI . This broad application, accordings critics disproportionately burdensome.

Outlook: treatment in the First Chamberr

The approval of the House of Representatives marks the next step in the legislative process. The bill now heads to the Senate for consideration. When this will take place is not yet known. A final implementation date is not yet known, but Minister Van Hijum (SZW) previously promised to send a letter to the Lower House in April with more information about the implementation date and timeline.

The introduction of the WTTA marks a comprehensive step in the regulation of organizations operating in the world of employment mediation in the Netherlands. It is now up to the Senate to further assess the bill and decide on its final introduction.

Should there be any questions about the WTTA, please contact us at publicaffairs@headfirst.nl

 

Report Regeldruk SZW-domain analysis and recommendations | Report | Adviescollege toetsing regeldruk

 

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Sem Overduin
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Oifik Youssefi
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Maaike van Driel
Head of Legal
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Thomas ten Veldhuijs
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