Christian Koelen: The Latest Legislation and Regulations in the Temporary Employment Sector
Wednesday 15 January 2025
Christian Koelen: The Latest Legislation and Regulations in the Temporary Employment Sector
In this article, legal expert Christiaan Koelen delves deeper into these developments, as well as the impact of new technologies and European regulations on the labor market.
Recent Developments
The temporary employment sector is facing a wave of new legislation aimed at improving working conditions for temporary workers. The More Security for Flexible Workers Act promises greater rights for flexible employees, although it also imposes restrictions on certain forms of flexibility.
From the age of 18, temporary workers can now participate in a pension scheme under the Future Pensions Act, providing them with greater financial security. Meanwhile, the demand for temporary staff continues to rise—particularly in sectors such as IT, technology, and logistics—driven by ongoing digitalization and the growth of e-commerce.
However, the new laws may increase operational costs, which could make it more difficult for smaller employment agencies to stay competitive. This could lead to further market consolidation. Despite these challenges, Uitzendbureau Flexibel BV remains committed to adapting with a “can-do” mentality, always focused on reliability and quality.
Changes in 2024
In 2024, several legislative changes came into effect that significantly influence the temporary employment sector.
From January 1, the minimum age to start accruing pension rights has been lowered to 18 years, benefiting both temporary and permanent employees. The eight-week waiting period for pension accrual was already abolished on July 1, 2023, marking a major improvement.
The statutory minimum wage increased by 3.75%, reaching €13.27 per hour for employees aged 21 and older. This provides more stability and fairer pay for temporary workers.
Starting July 1, 2024, companies with 100 or more employees must also report work-related mobility data to help reduce CO₂ emissions.
Another major change is the shortening of Phase A in the temporary employment chain—from 78 weeks to 52 weeks, with no exceptions allowed in collective agreements. This strengthens the position of temporary workers, as a permanent contract must follow thereafter.
Together, these changes reinforce the rights and job security of temporary employees, with greater emphasis on stability and sustainability.
PKS – Price-Quality System
The Price-Quality System (PKS) is an important initiative aimed at improving the living and working conditions of labor migrants. It introduces transparency and measurable quality standards for housing and costs.
With PKS, not only housing costs but also the quality of accommodation can be compared. This encourages employers and agencies to take greater responsibility for the living conditions of labor migrants—ultimately contributing to a fairer and more ethical work environment.
The WTTA – Temporary Employment Licensing Act
The Temporary Employment Licensing Act (WTTA) is designed to ensure the quality and reliability of employment agencies. By imposing strict licensing requirements, agencies must meet specific criteria to operate legally, thereby strengthening the protection of temporary workers’ rights.
Collective Labor Agreement for Temporary Workers
Since July 1, 2023, changes to the Collective Labor Agreement (CLA) for Temporary Workers have been implemented to promote good employment practices and clarity.
Temporary workers are no longer required to be available beyond their agreed working hours. Their stated availability now determines scheduling, ensuring fairer and more predictable work arrangements.
A Fair Labor Market
The introduction of the Temporary Employment Licensing Act (WTTA) marks an important step toward a fairer labor market. This licensing system ensures that only reliable agencies are granted access to the market.
Stricter regulations require employment agencies to pay the correct wages and associated taxes, combating abuse and driving out fraudulent operators. The inclusion of a standards framework with the SNA quality mark further raises the bar for market entry.
This system enhances oversight, compliance, and overall trust within the temporary employment sector.
Labor Migrants
The Dutch government is closely following the recommendations of the Roemer Commission, which highlighted serious abuses faced by labor migrants and stressed the need for decent working and living conditions.
It is essential that labor migrants receive fair pay and proper housing.
Employment agencies play a crucial role in supporting labor migrants in the Netherlands. They must comply with strict regulations to safeguard their rights. However, illegal practices among disreputable agencies continue to pose risks, underscoring the importance of strict enforcement.
Freelancer (ZZP) Enforcement in 2025
From January 1, 2025, enforcement of the DBA Act (Deregulation of the Assessment of Employment Relationships) will become stricter.
This does not mean the legislation will be abolished; rather, the goal is to combat false self-employment more effectively.
Companies will need to prepare for closer scrutiny of their collaborations with freelancers (ZZP’ers). Employers must ensure that their contracts and working arrangements comply with existing regulations to avoid unnecessary costs and legal risks.
The law remains in force, but the focus shifts to stricter enforcement to protect both freelancers’ rights and employers’ interests.
WTTA – Implementation in 2026
The Temporary Employment Licensing Act (WTTA) will take effect on January 1, 2026, providing a powerful tool against fraudulent labor intermediaries.
Under this legislation, agencies must obtain prior government approval before operating, ensuring that only compliant organizations remain active in the market.
Non-compliant agencies will face sanctions, helping to prevent the exploitation and underpayment of labor migrants.
The Role of Innovation and Digitalization
Digitalization plays a key role in today’s temporary employment sector.
Agencies such as Flexibel BV use advanced software and digital tools to drive innovation and analysis.
These technologies enable faster and more efficient operations, leading to higher satisfaction for both employers and employees.
A Sector in Transformation
The temporary employment sector is undergoing significant transformation due to new legislation designed to strengthen workers’ rights.
While these changes may lead to higher operational costs for agencies, they also present opportunities to enhance quality, reliability, and professionalism, especially as the demand for good employment practices grows.
The persistent shortage of skilled workers forces agencies to invest more in training and development—an essential step in an aging labor market with fewer young workers entering the workforce.
Recent legislative changes—such as the abolition of the 24-week requirement for asylum seekers and the Equal Opportunities Recruitment and Selection Supervision Act—improve labor market access for diverse groups and help reduce discrimination.
This will promote greater diversity, positively shaping the future of the labor market.
Flexibility and a “can-do” attitude remain crucial for both employers and employees in this evolving environment.