Temporary employment is an essential part of the Dutch labor market, but is affected by stricter rules around the highly skilled migrant scheme.
What is temporary employment?
Temporary employment is a flexible form of work in which a staffing agency employs workers and employs and makes them available to companies that need temporary workers. The temporary employment agency is responsible for salary, social contributions and compliance with working conditions. In addition, the employment agency is also responsible for the recruitment process, where it looks for a suitable employee and matches them with the client who needs the temporary worker. Unlike payrolling, where the client itself looks for an employee, but transfers the legal employer responsibility to a payroll company.
What changes in temporary employment
New regulatory challenges The Dutch government has taken several measures in recent years to improve the position of flexible workers. This directly affects the temporary employment sector:
- Labor Market Balance Act (WAB): This law increased the cost of flexible labor, including higher premiums for temporary contracts and tightening in chain of custody regulations.
- Employment conditions: Temporary staffing agencies are increasingly required to offer employees the same conditions as permanent employees with the client.
Currently, stricter rules around the highly skilled migrant scheme are affecting the sector as well. Staffing agencies employing highly skilled migrants must meet conditions for recognized sponsorship, which increases administrative and financial burdens.
Consequences of a ban on lending structures
Although temporary employment is generally not directly covered by the new restrictions,staffing agencies working with knowledge migrants must be extra careful:
- Duty of care: They must fully inform the employee of rights, obligations and terms and conditions of employment.
- Reporting requirement: Changes in a highly skilled migrant's situation (such as job change or conditions of employment) must be reported to the Immigration and Naturalization Service (IND).
Conclusion
Temporary employment remains an essential pillar of the Dutch labor market, but requires more than ever strategic insight and adaptability. By investing in quality and transparency, companies can maintain their flexibility while simultaneously meet changing legislative and regulatory requirements. At YourExpats, we understand how important it is to stay up-to-date on the latest developments. That is why we regularly publish new articles and useful information to inform companies about the changing.
