The WTTA: Stricter rules for employment agencies

The government wants tighter controls on employment agencies and other “lenders” of staff such as secondment agencies and payroll companies. Too often they do not comply with the rules or things go wrong. So, from 1 January 2027, the new law WTTA will apply.

What is the WTTA?

WTTA stands for Wet toelating terbeschikkingstelling van arbeidskrachten (Provision of Personnel Accreditation Act). This act applies to temping agencies and other businesses that hire out workers. These businesses will have to follow strict rules, or they will not be allowed to hire out workers.

There are 2 situations in which the WTTA does not apply: secondment of colleagues within the same business or a group of companies.

When does the WTTA take effect?

The law applies from 1 January 2027. From that date, you may only hire out workers if your business is approved by the Nederlandse Autoriteit Uitleenmarkt (NAU, in Dutch). You must register before 1 January 2027. The NAU hires inspectors to check whether you comply with the rules for hiring out workers. If you do, you will be given access to the market. You will receive a certificate. Your business will also be listed in a public register, so customers can see that you are allowed to hire out workers.

What are the requirements for registration?

There are strict requirements to be included in the NAU register. Businesses must submit a Certificate of conduct for legal entities (VOG RP). This is a document that proves that your business has properly followed the rules in the past. If you have a sole proprietorship (eenmanszaak), you must submit a certificate of conduct for yourself as an individual (VOG NP). 

You must also prove that you follow existing laws and regulations. For instance, you must show that you pay the legal minimum wage to your employees. Under the WTTA, workers you hire out are entitled to earnings comparable to that of the hirer's permanent employees. This includes wages, allowances, bonuses, and fringe benefits. This is called 'Equal pay for equal work'.

Finally, as an employment agency, you must pay a deposit of €100,000. After 4 years of following the rules, you get this amount back. Can you prove that your business has already followed the rules for 4 years? Then you might not have to pay a deposit. For example, if the business has been registered with KVK for 4 years and you can show with a statement of payment behaviour (in Dutch) from the Netherlands Tax Administration that you have always paid the correct amount of tax on time.

When will the rules be enforced?

From 1 January 2028, the Netherlands Labour Authority will start enforcing the WTTA. The authority will check whether businesses that hire out personnel are actually listed in the NAU register. If your business is not in the register, you will be fined.

Because of the WTTA, businesses that hire temporary employees are only allowed to work with agencies that are listed in the NAU register.

Why is the WTTA needed?

For years, there have been major problems in the temporary employment sector. It happens too often that both employment agencies and the businesses that hire workers from them do not follow the rules. The problems particularly affect migrants who come to the Netherlands to work temporarily. They are often underpaid, work too many hours, or are forced to live in sub-standard accommodation. The government wants to prevent these poor conditions.