The Dutch government has proposed a new law to regulate the provision of temporary workers by intermediaries, such as employment agencies or payroll companies, including EORs (employers of record) and platforms. It will apply if a company is based in the Netherlands or elsewhere, as long as they assign workers in the Netherlands to a client to work under the client's supervision and control.
The main purpose of the bill is to improve the position and protection of temporary workers, especially migrant workers, and to ensure a level playing field for all providers and users of temporary workers.
'Giant has been at the forefront of contractor compliance for over 30 years. The Netherlands is a thriving market for contractors where the legislation does change on a regular basis. This is something we at Giant are very used to.'
The background
The Netherlands used to operate a permit system, but it was abolished back in the 90’s under the reasoning of free trade. It is now thought that there are some companies operating in the industry in non-compliant ways and so a permit system has been proposed to combat this.
Permits and timeframes
Essentially to operate in the industry you would need to hold a permit. The purpose behind all of this is to protect the rights of workers and to make sure they are being paid correctly and are receiving all of the statutory benefits that they are entitled to.
At this time, it is just a bill, it is not legislation. The bill is expected to come into force as soon as possible after its approval by the Dutch parliament.
If the bill goes to parliament and is turned into legislation believes that August 2024 would be the earliest timeframe that there would be details of the application process for a permit.
Security deposit
The proposed bill also places new responsibilities on these providers, requiring them to inform their temporary workers and clients about their rights and obligations, allocate at least €100,000 for financial security, and cooperate with audits and inspections. Also getting a certificate from local authorities to confirm they're in good standing.
The law gives more power to authorities, like the Labour Inspectorate, who monitor and enforce compliance with employment standards. This law is to ensure compliance with the rules, using tools such as data sharing, fines, and the potential withdrawal of permission to operate. It's important to note that this law applies to all temporary worker providers, regardless of their location, including companies from the UK, the US, and elsewhere, that send workers to the Netherlands without having a physical office there, reflecting the changing nature of how services are provided remotely.
Quote from Charles Daw - Managing Director for Giant Global Payroll Limited
‘Giant has been at the forefront of contractor compliance for over 30 years. The Netherlands is a thriving market for contractors where the legislation does change on a regular basis. This is something we at Giant are very used to. We combine our proprietary software with the latest legislation so that our payments are on time and correct. If and when this new legislation in the Netherlands arrives, we will adapt our offering to make sure we maximise compliance and minimise complexity for our clients.’
