Gibson Watts Global: PEO & EOR Services

Contact Us

Netherlands Introduces Mandatory Authorisation for Labour Leasing Companies: What Employers Need to Know

Key Chapters:

As of 2025, significant legislative changes are underway in the Netherlands that will reshape the labour-leasing (temporary staffing / agency work) landscape. These developments have major compliance, financial, and operational implications – especially for organisations using labour suppliers, staffing agencies, or EOR arrangements. Gibson Watts Global helps companies navigate exactly these kinds of changes, making sure all pieces of the puzzle (legal, payroll, contracts, risk) are handled properly.

What’s Changing: Key Provisions of the New Law

  • The Dutch House of Representatives adopted a bill on authorisation for companies that assign or lease workers (“Wet toelating ter beschikkingstelling van arbeidskrachten” or WTTA).
  • Under this law, companies that supply workers to third parties on a structural basis must obtain mandatory authorisation from the Minister of Social Affairs and Employment.
  • Organisations that hire workers (recipients, or inleners) will only be permitted to engage workers from suppliers who are authorised.
  • The law also gives power to ban or restrict temporary agency work in certain sectors, and to exempt some sectors from the authorisation requirement under specified conditions.

Admission Criteria: What Labour Suppliers Will Need

To receive authorisation under the WTTA, labour suppliers must satisfy several new requirements:

  1. Certificate of Good Conduct (VOG) for legal entities.
  2. Financial Guarantee:
    1. €100,000 for most suppliers.
    2. €50,000 for startups (smaller labour suppliers).
  3. Demonstrate full compliance with applicable laws: labour/employment law, tax law, and social security regulations.

Implementation Timeline & Enforcement

  • The law was passed by the House of Representatives on 15 April 2025.
  • If approved by the Senate (no substantive amendments possible), the law is expected to come into effect 1 January 2027.
  • Enforcement is scheduled to begin in January 2028, when the Dutch Labour Authority will begin active oversight of compliance under the authorisation scheme.

Why This Matters: Impacts for Employers, Labour Suppliers, and EORs

These new rules have broad implications. Whether you’re a labour supplier, a company that procures temporary or agency workers, or an organisation using EOR services, the changes will affect how you operate in the Dutch labour market:

  • Greater Due Diligence Required: Companies must ensure any supplier or EOR partner in the Netherlands is or will be authorised. Working with unauthorised suppliers could lead to legal risk, fines, or inability to legally engage workers.
  • Financial Burdens: The guarantee requirement (€100,000 or €50,000) and compliance costs (inspections, documentation) may impose upfront costs on labour suppliers. Smaller EORs or suppliers will need to plan carefully.
  • Contract & Procurement Review: Contracts with suppliers need reviewing to ensure they require authorisation, and possibly include clauses for compliance tracking.
  • Operational Adjustments: Staffing in certain sectors may need structural changes; some sectors might be exempt, others might see bans or restrictions on temporary agency labour.
  • Transparency & Accountability: A public register of authorised suppliers will likely be established. This will mean more visibility into who is compliant – and who is not.

How EOR Services Can Help You Comply

For organisations using EORs to employ or engage temporary/agency workers in the Netherlands, there are steps you should take now to stay ahead of these changes:

  • Audit your current supply chains and verify whether your labour suppliers or EOR partners are preparing for or have the necessary authorisation.
  • Engage with EOR providers who understand the WTTA, its requirements, and timelines. A good EOR will handle much of the compliance burden: obtaining credentials, managing payroll, ensuring tax and employment law requirements are met.
  • Update your risk assessments and contracts: Include clauses to ensure suppliers maintain authorisation status; plan for the financial guarantee; ensure procedures exist for working only with authorised entities.
  • Budget and plan for transition costs: Inspections, compliance, financial guarantees, possible delays in supplier eligibility – all should be included in financial planning.

Challenges & Risks to Watch Out For

  • Suppliers or agencies that are unfamiliar with Dutch law may unintentionally fall short of requirements, resulting in delays or legal exposure.
  • The capacity of authorities to process authorisation applications could introduce bottlenecks – suppliers should plan early.
  • Some sectors may face bans or restrictions; companies need to monitor if their sector is affected.
  • Fines or sanctions from the Labour Authority for non-compliance once enforcement begins.

What Companies Should Do Now

To prepare for the coming law, Gibson Watts Global recommends that businesses operating in or planning to work in the Netherlands:

  1. Map your labour suppliers/EOR partners and assess whether they will be authorised under WTTA.
  2. Begin collecting necessary documentation: VOGs, tax and social security compliance records, and review financial capability.
  3. Engage early with EOR partners: ensure your EOR in the Netherlands is preparing to meet authorisation requirements.
  4. Review existing and future contracts and procurement policies: insert clauses requiring supplier authorisation and accountability.
  5. Budget for the changes: guarantee amounts, administrative compliance, potential transition delays.

Conclusion

The Netherlands’ new mandatory authorisation law for labour leasing companies (WTTA) marks a major shift. It aims to clean up the industry, protect workers, especially temporary and migrant staff, and ensure fair competition. For organisations using labour suppliers or EOR arrangements, the time to prepare is now.

At Gibson Watts Global, we offer full EOR services designed to help businesses comply with changing regulations. From verifying authorised suppliers to ensuring payroll, contracts, and employment practices meet the new legal standards – we can guide you through this transition.

If you work with labour suppliers in the Netherlands – or if your business is considering using staffing or agency labour in the Dutch market – contact Gibson Watts Global today. Let us help you stay compliant, reduce risk, and maintain operational agility.

Facilitating your requirements, wherever you are.
Talk to us about your PEO & EOR requirements

Get Started Today
Scroll to Top