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Netherlands: House of Representatives has started debating the Bill on the Admission of Workers on Posting (Wtta)

The Bill aims to regulate temporary employment agencies more stringently, imposing licenses to operate on the market.

Agencies must provide a Declaration of Conduct (VOG), transfer a security deposit of EUR 100,000, and demonstrate adherence to appropriate wage distribution and tax obligations. 

The Labour Inspectorate will oversee the obligations of both the lending and hiring companies, and periodic checks will ensure ongoing compliance.

However, the Bill has encountered significant opposition from unions and industry bodies. They argue that the proposed administrative requirements and procedures will not effectively reduce malpractices in the sector. Furthermore, the advisory board (Regulatory Burden Assessment Board, ATR) has criticized the Bill, suggesting it would create at least EUR 143 million in additional annual regulatory costs for businesses, advocating for a more robust enforcement of existing rules.

The General Association of Temporary Employment Agencies (ABU) commented to agree, in principle, with the new licensing system intended to enhance the quality of the temporary employment sector. However, they stress that rules should be executable, proportionate, and enforceable, suggesting three measures to the Dutch Parliament, which is currently reviewing the Bill:

-           Mandate hiring companies to provide a 'subcontracting declaration' during financial audits, proving collaboration with licensed staffing agencies.

-           Implement an immediate penalty policy where businesses stripped of their license receive a prompt inspection.

-           Increase the number of inspectors and equip them with tools to effectively and permanently remove fraudulent businesses from the market, such as a statutory administrative prohibition.