With the entry into force of the Act on the Admission for the Posting of Workers (Wtta), the Act on the Allocation of Workers by Intermediaries (Waadi) is being amended substantially. The purpose of the Wtta is to provide better protection for posted workers and to create a more equal level playing field for labour supply agencies. The Wtta introduces a new admission system for the posting of workers and replaces the current registration requirement. This substantially changes the legal framework for the posting of workers. The changes are expected to take effect on January 1, 2027.
In this article, we explain what the most important changes entail and what this means for companies that post employees and for hiring companies.
From registration requirement to admission
The current registration requirement under Article 7a of the Waadi will disappear. Instead, an admission system will be introduced: only companies having such admission will be permitted to post workers. The aim is to make the labour supply and demand market more transparent and to strengthen supervision and enforcement of applicable employment rules.
General rule: prohibition on posting of workers without admission
As a rule, it will be prohibited to post workers without authorisation. Foreign companies who post workers in the Netherlands are also subject to this requirement. Admission is only possible for legal entities or businesses as registered in the Commercial Register and is non-transferable. The admission is valid for four years. After that, a new admission must be applied for.
Admission requirements
In order to be admitted, a company must meet the following requirements:
- be registered in the Register of the Dutch Chamber of Commerce;
- submit a valid certificate of good conduct (VOG) (for both the (legal) entity and the partners, managers, and members of such entity);
- provide a deposit for € 100,000 (or € 50,000 for provisional admission). This deposit may be called upon to cover, among other things, wage obligations, administrative fines, and taxes and social contributions owed. For companies that are already posting workers, the Wtta contains transitional provisions. If certain strict, exhaustively defined conditions are fulfilled, they do not have to provide a deposit;
- comply with the established framework of standards. This framework consists of a comprehensive set of requirements regarding compliance with labour law, social security legislation, and tax legislation; and
- demonstrate compliance with that framework of standards by means of an inspection report from a designated inspection body. The inspections are carried out by private-law inspection bodies accredited by the Dutch Accreditation Council. The inspection report is an essential part of the admission procedure and the maintenance of the admission.
These requirements represent a significantly stricter regime compared to the current one, under which registration with the Chamber of Commerce is sufficient.
Exemptions and provisional admission
The Wtta allows for exemptions from the admission requirement in cases where the posting of workers constitutes only a very limited part of the business activities of a company. Temporary employment agencies within the meaning of Article 7:690 of the Dutch Civil Code are excluded from exemption.
In addition, start-up companies may apply for a provisional admission because they are not yet able to meet all the requirements for an admission.
New obligations for hiring companies
The Wtta amends the Waadi not only for companies that post workers but also for hiring companies. Companies may only hire workers from admitted companies (or companies that are exempted from the admission requirements). In addition, the Wtta introduces several extra administrative obligations for hiring companies and an obligation to cooperate with the inspection bodies. The obligation to cooperate is intended to enable effective supervision of compliance with the admission requirement and the equal pay rules of the Waadi.
Enforcement and sanctions expanded
The amendments to the Waadi are accompanied by strengthened enforcement measures. If an admitted company no longer meets the admission requirements, the admission may be suspended or revoked. In addition, the Dutch Labour Inspectorate may impose a fine on the posting company and on the hiring company if they nevertheless continue to post or hire workers. A penalty payment (dwangsom) may also be imposed to compel the posting company to comply with the admission requirements or to terminate the posting of workers.
Transitional Provisions
Finally, the Wtta contains several transitional provisions. For example, companies that apply for (provisional) admission, or exemption from the admission requirements within six months of the Wtta’s entry into force may, under certain conditions, continue to post workers until a decision is given by the authorities on the application for admission or exemption. This is intended to ensure the transition to the new system is manageable in practice.
Contact us
Should you have any questions, please do not hesitate to reach out to our colleague mentioned below or contact your trusted Loyens & Loeff adviser.