Employment agencies, secondment agencies, and other lenders: the clock is ticking—prepare for the Wtta!⏱️

This time, it's not a light-hearted blog, but one you really should read! 

You've probably already seen it. The Senate has passed the bill ‘Wet toelating terbeschikkingstelling van arbeidskrachten’ (Wtta) (an extension of the Waadi). 

This law will have major consequences for temporary employment agencies, secondment companies, other lenders, and hirers, because a licensing requirement will apply. The new rules are set to take effect on January 1, 2027. 

What does this mean in concrete terms?

Companies that want to continue to supply workers must register with the Dutch Temporary Employment Market Authority (NAU) in good time. This registration is mandatory in order to obtain a permit (with some exceptions). The Labor Inspectorate is expected to start enforcing the rules from January 1, 2028. Anyone who continues to operate without a license (or valid exemption) risks a fine — not only the lender, but also the hirer who takes on staff. In short, check in good time whether you need to take action. If you are not a temporary employment agency (and are not covered by a collective labor agreement for temporary employment), but do sometimes hire out employees, for example as a secondment agency or payroll company, you still need to check whether you need to take action in the coming year. If you are covered by the Waadi, you are also covered by the Wtta. Contracting and contracting out of work (i.e., if the management and supervision of employees does not lie with the client) are not covered by this in any case. Please note: in practice, the distinction between lending and contracting is often a subject of debate. 

To obtain a license, the lender must, among other things:

• Be registered with the Chamber of Commerce;
• Submit a Certificate of Good Conduct (VOG), which checks whether the company and its directors have any criminal offenses to their name.
• Demonstrate that the organization complies with existing labor and wage legislation (e.g., payment of the minimum wage; the SNA quality mark is also important here);
• Paying a deposit of € 100.000,00 (or € 50.000,00 for small or start-up lenders), unless you are covered by transitional law; and
• Ensuring that workers are correctly registered in the Personal Records Database (BRP). 

Lenders have until July 1, 2027, to apply for a license. 

Transitional arrangement

Under transitional law, approximately 80% of existing companies are not required to pay a deposit. This applies to companies (and private individuals) that have been registered in the Commercial Register for more than four years. Please note: you must still meet the other conditions. Anyone wishing to make use of transitional law must report to the Ministry of Social Affairs and Employment between November 1, 2026, and January 1, 2027. The security deposit is intended to prevent so-called volatile entrepreneurship—situations in which unscrupulous lenders close their businesses as soon as supervision or debts threaten, only to continue under a new name.

Exceptions                                                                                 

The law also provides for exceptions for:

• non-profit collegial lending (such as the temporary lending of healthcare workers between healthcare institutions during peak periods in exchange for wage costs);
• intra-group arrangements, whereby employees are loaned within the same group;
• security and investigation companies requiring a license, BBL programs, and social development companies;
• companies that only provide workers “to a limited extent,” such as consultancy firms (they can apply for an exemption). 

Foreign lenders can also apply for an exemption under certain conditions. 

Purpose of the law
The Wtta aims to provide better protection for employees, particularly migrant workers. Stricter licensing and supervision will tackle abuse and exploitation in the temporary employment sector and create a level playing field between bona fide and rogue lenders.

Are you unsure whether your organization will need a license or whether it falls under an exception? Or would you like to know what steps you need to take and when?

Please contact one of our employment lawyers: Dennis Oud, Elke Hofman, or Tessa Sipkema.

Read the legislative proposal here.