Temping or payrolling? New Dutch rules 2020

Temp agencies play a major role in matching demand and supply on the Dutch labour market. When not searching for new staff but outsourcing administrative and legal responsibilities, companies often make use of pay-rolling companies.   

Typically, the rules for temporary workers – or: temps (in Dutch: uitzendkrachten) – are much less protective (employment lite) than those for regular employees. What about the employment protection of pay-rolled workers? Until 2020, pay-rolled workers and  temporary workers were equally unprotected. This has changed as of January 2020. If (a) the agency has no role in matching supply and demand of labour, and (b) the pay-rolled employee is working exclusively for one client-company, the pay-rolled worker can, to a large extent, rely on the same protection and benefits as regular employees working in a similar role as the pay-rolled worker. Thus, the Dutch rules now distinguish temporary workers from pay-rolled workers, granting a lot more protection to pay-rolled workers.

Note that transition rules prevent that pay-rolled employees hired before January 1st 2020 are becoming permanent employees pursuant to the new Dutch rules for payrolling. For new contracts it is worth finding out if you are dealing with temping or pay-rolling.