Temporary agency workers and staffing agencies: rules, phase system and responsibilities

27 December 2025

Arslan Advocaten

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Temporary agency workers and staffing agencies: rules, phase system and responsibilities

Temporary agency work revolves around a triangular relationship between agency worker, employment agency (lender) and client (hirer). The phase system (A–C) determines which rights and protections the agency worker has. From day one, in principle, equal pay as at the hirer, and the agency clause may not be invoked in the event of sickness. Both the hirer and the employment agency have a duty of care. Flexible deployment is possible, but requires careful compliance with laws and regulations.

A. From agreement to hiring-in
B. Position and obligations of the hirer
C. Position and obligations of the lender (temp agency)
D. Position and rights of the temporary agency worker
Phase system: phase A, B and C (overview)
Frequently asked questions
Help from Arslan Advocaten

A. From agreement to hiring-in

The hirer enters into an agreement with the temporary employment agency for the making available of labor. The agency’s general terms and conditions usually apply to this. The temporary employment agency must, among other things:

be registered in the Trade Register;
comply with the WAADI (including, among other things, no making available in case of strike/company occupation; clear information about the workplace, duties, working conditions and required qualifications);
the position and workplace details provided by the hirer in writing with the temporary agency worker share.

Core characteristic: freedom of the parties at the outset.

The hirer does not have to give an assignment or accept a specific temporary agency worker to accept.
The temporary employment agency is not obliged to carry out an assignment.
In phase A with temporary agency clause the agency worker can refuse assignments; in later phases that freedom decreases.

B. Position and duties of the hirer

Duty of care and liability

The hirer must exercise the same care towards the agency worker as for its own staff (safety, occupational health and safety, instructions, supervision). In many contracts the temporary employment agency (partly) excludes its own liability and requests an indemnity of the hirer; however, the agency may be liable in exceptional cases in the event of a serious breach.

Assignments and termination

Duration and termination options follow from the hiring agreement.
For assignments of indefinite duration, a reasonable notice period is customary; for fixed-term, in principle no early termination, unless expressly agreed.
Termination on unjustified grounds (e.g., discrimination) can lead to liability for damages.

Pay and timesheets

As a rule, from day one the hirer’s pay: wages and fixed allowances in accordance with the position at the hirer.
Time recording via timesheets forms the basis for invoicing to the hirer and wage payment to the temporary agency worker.

Payroll arrangement (brief explanation)

In payroll, the agency mainly takes over the administration and wage payment over; recruitment and day-to-day supervision lie with the hirer. Advantages: fewer administrative burdens and the risk of sickness is borne by the agency. Contractual and legal diligence remains required.

C. Position and duties of the lender (temp agency)

The temp agency is the formal employer: it pays wages, withholds and remits contributions, and handles recruitment, selection and often training.
In case of illness continued wage payment applies in accordance with the collective agreement/law; the the agency clause lapses in the event of illness and cannot then lead to the end of the contract. The agency ensures safe deployment, appropriate placement and correct provision of information.

D. Position and rights of the temporary agency worker

Registration and information

Upon registration, the temporary agency worker agrees for which work, what pay and which hours he is available. The employment history (also via other agencies) is relevant for the phase counting and may affect salary classification and rights.

Employment contract and duration

The temporary agency worker has an employment contract with the temporary work agency (Art. 7:690 Dutch Civil Code), while the work actually at the hirer is performed. The contract form and protections depend on the phase.

Phase system: from flexible to permanent

Phase A — accrual of 52 worked weeks

Usually with agency clause: the agreement ends when the assignment stops. Without an agency clause is also possible.
Interruption < 26 weeks: counting continues; ≥ 26 weeks: phase counts again.
Notice/notification to the temporary agency worker is required as the duration progresses; in case of late notification, wages over the period may be owed (or offer suitable work).
Illness: the temporary agency clause can not be invoked; continued wage payment in accordance with the collective agreement/law.

Practical: in phase A the temporary agency worker can often still refuse work; as protections increase, the acceptance obligation for suitable work increases.

Phase B — fixed-term employment contract

No temporary agency clause anymore.
More security: continued payment of wages for the contracted hours, also when there is temporarily no work or in case of illness (in accordance with the collective labour agreement/law).
Duration: maximum three years and six contracts (with a short interruption, the count continues).
Early termination can only be done if that in writing and explicitly is agreed; the agency in principle has a dismissal route (UWV/subdistrict court judge) required.

Phase C — employment contract for an indefinite term

No agency clause.
Regular dismissal rules applicable (UWV or subdistrict court judge; redeployment and reflection rules play a role).
Continued wage payment in case of no work and in case of illness according to collective agreement/law; temporary agency worker must suitable work accept.

Overview by phase (summarized)

Phase A

52 worked weeks (continues counting during interruption < 26 weeks).
Often with agency clause; not applicable in case of illness.
Notice/advance notice depends on duration; if late: wages or suitable work.

Phase B

Contracts for a fixed term, no agency clause.
Maximum 3 years / 6 contracts (unless a longer interruption).
Wages paid for contracted hours; limited midterm termination.

Phase C

Indefinite term, regular termination route.
Continued wage payment and duty to accept suitable work.

Frequently Asked Questions

May the hirer terminate early?
Only if this is agreed in the hiring agreement. For fixed-term assignments, generally not, except with explicit clauses.

Does the agency worker receive pay when there is no work?

Phase A with agency clause: when the assignment ends, the obligation to continue paying wages (except in case of illness).
Phase A without agency clause / B / C: continue to pay wages in accordance with contract/collective agreement; suitable work must be accepted.

How does pay work?
The hirer’s pay applies from day one: wages and fixed allowances according to the job at the hirer.

What if the agency worker becomes ill?
The agency clause can not before the end of the contract be used. Continued payment of wages according to collective agreement/law; note waiting-day and percentage rules.

Can a temporary agency worker switch to the hirer?
Yes. Sometimes contracts include a transfer or mediation fee; the legal validity of this depends on the wording and circumstances.

Help from Arslan Advocaten

Do you have questions about the phasing system, hirer’s remuneration, notice or termination, or a dispute about continued payment of wages or duty of care? The employment law attorneys of Arslan Advocaten advise and litigate for temporary workers, temp agencies and hirers. We take a practical approach and ensure that you contractually and legally in order are.