Temp Agency Workers Rights Guide

Temporary agency workers and their rights: What do you need to know?

Thousands of people in the Netherlands work as agency workers. But what exactly are their rights and obligations? This article explains which rules apply and what both agency workers and agencies need to know about their working relationship.

What is an agency worker?

An agency worker is an employee who works temporarily at a client (the hirer) through an employment agency. This creates a triangular relationship between the agency worker, the agency and the hirer. The agency is the formal employer of the agency worker, while the work itself is performed at the client.

Agency workers’ rights

Agency workers are entitled to the same terms of employment as staff employed directly by the client, under the Placement of Personnel by Intermediaries Act (WAADI). That means equal pay for equal work, supplements, holiday days and leave as set out in the hirer’s collective agreement. From day one the so-called hirer’s pay applies, meaning agency workers must receive the same pay as regular staff in comparable roles.

Agency workers are also entitled to:

Holiday days and holiday allowance: agency workers accrue holiday days and are entitled to holiday allowance of 8% of their gross pay.
Continued pay during illness: since 2023 agency workers cannot be dismissed immediately when they fall ill. The agency must continue paying for up to two years, depending on the length of the contract.
Pension accrual: agency workers accrue pension after 8 weeks worked, and since 1 January 2024 this applies from the first working day for agency workers aged 18 and over.

What exactly are your rights?

Your rights as an agency worker depend on:

whether you work for an agency bound by a collective agreement or one that is not;
whether there is an agency clause in your contract.

It is important to look closely at your contract: an agency clause means it can end automatically when the work at the client stops. If you work for an agency bound by a collective agreement, extra or additional rights often apply.

The different phases in agency work

The phase system for agency workers in the Netherlands is divided into three phases: A, B and C. Each phase brings different rights and obligations:

Phase A: in this phase, which lasts a maximum of 52 weeks, the agency worker usually works under an agreement containing an agency clause. That means the contract ends automatically when the client no longer has work. Do you have a contract in phase A without an agency clause? The agency clause then does not apply and the agency cannot simply dismiss you. In this phase you can work for one or more companies, and there is no maximum number of contracts.No work?
The agency must state in writing whether you continue to be paid when there is temporarily no work. That can be in the contract or confirmed by e-mail. If the agency does not pay when there is no work, it must record that in writing at the very start of the employment. If it does not, you may still be entitled to pay when there is no work.
Phase B: after phase A the agency worker moves to phase B, receiving a fixed-term contract. The agency clause no longer applies and there is more certainty about work and income. Even where there is temporarily no work for you, you are entitled to pay for as long as your contract runs; the agency must then continue paying 100% of your wage. In some cases the agency will try to find suitable other work for you, which you are then obliged to accept.
Phase C: phase C begins after three years in phase B or after six contracts. The agency worker then receives a contract for an indefinite period, comparable to permanent employment. If the work falls away, the agency must continue paying 100% in this phase. Sometimes it will look for suitable other work for you, which you are then obliged to accept provided it is reasonable and suitable.

The agency’s role

The agency is responsible for correctly observing the terms of employment. That covers paying wages, ensuring a safe workplace and complying with the rules on working conditions. The agency must also comply with the WAADI and with the collective agreement for agency workers.

The agency must also:

be registered with the Chamber of Commerce;
make the working conditions clear before placing an agency worker;
observe the qualifications required for the role in question.

Liability for accidents or damage

Although the hirer is responsible for safety on the shop floor, the agency can in certain cases also be held liable for loss the agency worker suffers or causes at work. It is therefore important that agency and hirer make clear arrangements and record them in an agreement.

The transition payment for agency workers

As an agency worker you are also entitled to a transition payment once your contract is ended or not renewed on the agency’s initiative. That applies whatever phase you are in, provided you do not resign yourself and are at least 18. The transition payment is a statutory payment intended to cover the cost of moving on or retraining.

Its level is determined by your monthly salary and the number of years you have worked. You accrue it from your very first working day, so it makes no difference whether you have a short assignment or have worked through the same agency for years.

Note: if you decide to leave yourself, you have no entitlement. Where you have a fixed-term contract that expires by operation of law and the agency does not renew it, you are entitled to the payment.

That way you are not left empty-handed as an agency worker when your employment ends.

Pay when there is no work: how does phase A work?

In phase A most agency workers work under an agency clause. That means the contract ends automatically when the client no longer has work. The agency is then not obliged to continue paying once the work stops.

The agency clause is sometimes excluded, however. If your agreement contains none, you are usually entitled to continued pay even where there is temporarily no work. The agency must state clearly and in writing whether the clause applies. That is usually in your contract or an annex, but may also be recorded by e-mail.

Are you told there is no work, and does your contract contain no agency clause? You are then often entitled to pay even though no work is offered. So check your contract carefully and, if in doubt, contact a trade union such as FNV or CNV for advice.

Note: phases 1 and 2 of the ABU collective agreement, and phase A of the NBBU agreement, work largely the same way.

Dismissal in phase A: with or without an agency clause

Do you have a contract in phase A (or phases 1 and 2) and wonder how dismissal works? The answer depends on whether your contract contains an agency clause.

With an agency clause

Where your contract contains an agency clause, your agreement can end relatively easily. It stops as soon as the company where you work (the hirer) says your assignment is finished. You are then only entitled to pay for the hours actually worked. That allows the agency to let you go with immediate effect when there is no more work — without a notice period or further procedure.

Do you have a contract in phase A (or phases 1 and 2) in which the agency clause does not apply? Stricter rules on dismissal then apply. The agency cannot simply dismiss you on the spot when the work at the client stops.

Without an agency clause

In that situation:

the agency must follow the ordinary dismissal rules, as with permanent employment;
you are entitled to a notice period, depending on the length of your contract;
the agency – if it wants to end the contract – must often ask the UWV for permission or go to subdistrict court .

Note: if your contract is for a fixed period, it does simply expire at the end of that period. Are you nevertheless dismissed early without a valid reason? You may then be entitled to compensation or to pay over the remainder of the contract term.

Maternity leave for agency workers

Are you pregnant while working as an agency worker? You are entitled to maternity leave, just like other employees. During your leave you normally receive a pregnancy and maternity benefit through the UWV. If you fall ill as a result of your pregnancy, your pay simply continues. It makes no difference whether you are in permanent employment or work through an agency — the statutory protection applies to everyone.

So if you are expecting a child, discuss your situation with your agency in good time. They can tell you about the official scheme and make sure your rights to leave and benefit are properly arranged.

Protection against dismissal in phase C (or phase 4)

Once you have reached phase C (under the NBBU or ABU agreement) or phase 4, you have a contract for an indefinite period with the agency. From that point your protection against dismissal is virtually the same as that of staff on permanent contracts with other employers. That means the agency cannot simply dismiss you.

Dismissal during phase C or 4 is only possible under strict conditions:

Summary dismissal: This is only permitted for a serious reason, such as theft or gross misconduct.
With permission from the UWV or the subdistrict court: If the agency wants to give notice because of economic grounds or long-term incapacity, the UWV’s approval is always required. For personal reasons (a damaged working relationship, for instance) the subdistrict court must give permission.
Termination by mutual consent: You and the agency can make arrangements together about ending the contract, recorded in a termination agreement.

You are also entitled to the statutory notice period and in many cases to a transition payment. So stay alert: on dismissal it is wise to seek advice from a trade union, the Juridisch Loket, or FNV or CNV. That way you know what you are entitled to and are not left empty-handed.

Entering directly at phase B or C: what happens?

Sometimes an agency worker starts directly in phase B or C, without first working in phase A — because you have done agency work through another agency before, for instance, or because the nature of the role calls for it. If you start directly in phase B you have more certainty at once: you receive a fixed-term contract without an agency clause, so it does not simply end when the client no longer has work. If you start straight in phase C you even have an immediate right to a contract for an indefinite period. The usual route through phase A is then skipped and you benefit sooner from greater job security.

Note that your contract may contain specific arrangements about this entry point. It is therefore wise to read it carefully before signing. Do you have questions about your situation, or doubts about which rules apply? You can always seek advice from unions such as FNV or CNV, or consult your collective agreement.

Ending the contract early in phase B or C

Agency workers in phase B or C usually have a fixed-term or indefinite contract without an agency clause. Early termination by the agency is then not simply possible. Notice before the agreed end date is only allowed where the contract contains a clear provision for it, such as an early-termination option. Without such a provision the contract in principle runs to the agreed end date.

The agency must also have a statutory ground to end your contract early — in cases of seriously culpable conduct conduct, for instance. A notice period remains compulsory in most cases. So always go through your contract and terms of employment carefully, so that you know exactly where you stand.

Rights with an unaffiliated agency

Do you work for an agency that is not a member of trade bodies such as ABU or NBBU? You still have certain rights as an agency worker, though some arrangements may differ. The WAADI still applies, giving you a right to the statutory minimum wage, holiday days and holiday allowance, among other things. Nor may you, as an agency worker at an unaffiliated agency, simply be worse off than colleagues employed directly by the client — that basic protection remains in force.

The biggest difference often lies in additional arrangements, such as extra benefits under a collective agreement or particular leave schemes. Those are not always a given at an unaffiliated agency. It is therefore wise to read the contract carefully and to ask which conditions apply. If in doubt you can always seek advice from a legal adviser or a trade union, so that you know where you stand.

Tacit renewal of your contract in phase B

Phase B (phase 3 under some collective agreements) usually involves a fixed-term contract with an agreed end date. But what if that date passes and you simply carry on working, without anything new being expressly agreed? A tacit renewal then arises: your existing contract is in effect continued automatically, on the same terms as before.

Note: that renewal is not unlimited. In phase B you can have a maximum of six contracts within three years. Do you carry on working after that period without further arrangements? You may then be entitled to a contract for an indefinite period.

In short: keep a close eye on when your contract expires and discuss any renewal with your agency in good time, so that you know where you stand.

Contracts with an end date in phases B and C

A contract in phase B or C often contains a clear end date, so you know in advance how long it runs. On that date the employment stops automatically, unless before the end you and the agency decide together to renew it.

What happens if you carry on working after the end date without anything being agreed? Good news: your contract is then tacitly renewed and your original terms simply continue. You are not suddenly out of the door without work or security.

Note: does the agency want to end your contract early, before the end date? That is only allowed where the contract clearly provides for it and the agency can show a good reason. Protecting your rights comes first here.

Am I entitled to a notification payment in phase B or C?

Do you work in phase B or C on a fixed-term contract of six months or longer? The agency then has a duty to notify. That means you must be told in writing, at least one month before your contract ends, whether it will be renewed or terminated. If that notification comes late, you are entitled to a notification payment of up to one month’s salary.

Note: that duty applies only to contracts with a clear end date. If you have a contract without a fixed end date (a phase A contract with an agency clause, for instance), no notification payment applies.

Working for an unaffiliated agency: what does that mean for your rights?

Are you working through an agency that is not a member of ABU or NBBU? It is worth knowing that not all the rules of those collective agreements automatically apply to you. Even so, you still have statutory rights that offer protection:

Terms of employment: at an unaffiliated agency too you are entitled to the minimum wage, holiday allowance and holiday days. You fall under general legislation such as the Dutch Civil Code and the WAADI.
Hirer’s pay: as at other agencies, you are often entitled to the same pay as the client’s permanent staff. That is laid down in the WAADI.
Continued pay during illness: you cannot simply be dismissed when ill. The statutory rules on continued pay and protection during illness apply.
Pension accrual: even where no collective agreement applies, you can be entitled to pension accrual under the statutory rules.

Note: the precise terms can differ, because unaffiliated agencies are not bound by the collective agreement. So always check your contract carefully and ask for an explanation where anything is unclear. That way you know where you stand as an agency worker.

What rights do you have when working for an affiliated agency?

If you work through an agency that is a member of a trade body such as ABU or NBBU, you can count on extra safeguards and clear arrangements. Your terms of employment are tightly regulated and you build up more rights step by step, depending on the phase you are in.

The main rights at an affiliated agency:

Continued pay during illness: if you fall ill, your pay continues under the applicable rules, including illness during pregnancy.
Maternity leave: you are entitled to pregnancy and maternity leave, just like permanent staff.
A right to a permanent contract: once you reach the longest phase (phase C) you are entitled to a permanent contract. That usually happens after four years working through the same agency.
Resigning: you may in principle resign, unless your fixed-term contract specifically states that this is not possible before the end date.
Transition payment: if your contract stops you are entitled, subject to conditions, to a transition payment.

Your exact rights also depend on the phase (A, B or C) of your contract and on whether there is an agency clause. The next section says more about that.

The difference between affiliated and unaffiliated agencies

Not all agencies are the same when it comes to terms of employment. In the Netherlands a distinction is drawn between affiliated and unaffiliated agencies. But what does that mean for you as an agency worker?

Affiliated agencies
These agencies are members of trade bodies such as ABU or NBBU. Working through an affiliated agency has some clear advantages: you fall under a collective agreement that offers extra protection, for instance:

continued pay during illness, including during pregnancy;
a right to maternity leave;
the prospect of a permanent contract after four years’ service;
a right to a transition payment when your contract ends;
often more clarity about your options for giving notice.

Note: the precise rights depend on the phase your contract is in and on whether there is an agency clause.

Unaffiliated agencies
If you choose an unaffiliated agency, less tightly drawn rules apply. You may have different or less extensive rights, because you do not automatically fall under the collective agreement of the main trade bodies. Arrangements about illness, continued pay or permanent contracts can therefore differ from agency to agency.

Unsure whether your agency is affiliated? Ask, or check the ABU or NBBU websites for an overview. That way you know exactly where you stand.

Why legal help with agency work?

Whether you are an agency worker, an employer or an agency, it is important to know your rights and obligations. The rules on agency work can be complex and in some situations legal advice is necessary — in disputes about pay, dismissal or working conditions, for instance.

At Arslan Advocaten we have years of experience in employment law and help agency workers, agencies and hirers alike to resolve legal issues. Our team is ready to advise and guide you, whether that means mediation or litigation.

Conclusion

Agency workers in the Netherlands have clear rights, often equal to those of permanent employees. It is essential that agency workers, agencies and hirers know the rules, so that disputes are avoided. Do you have questions about your rights as an agency worker or as an employer? Then contact Arslan Advocaten today for expert legal advice.

Frequently asked questions

What are the main employment rights of agency workers in the Netherlands?

Agency workers are entitled to equal pay for equal work, holiday days, holiday allowance, continued pay during illness and pension accrual. Those rights apply from day one and follow the hirer’s collective agreement.

What is an agency clause, and why is it important to check for it in your contract?

An agency clause means your contract can end automatically when the work at the client stops. It is important to know about it because it affects the security of your working relationship.

How are agency workers’ rights affected by the type of agency they work for?

If you work for an affiliated agency bound by a collective agreement, you often have extra or additional rights. At an unaffiliated agency the standard statutory terms apply.

What does the phase system (A, B, C) mean for agency workers’ rights?

The phase determines the duration and the terms of employment. In phase A, which lasts a maximum of 52 weeks, a contract with an agency clause usually applies, so the contract can end when the work stops. Each phase carries its own rights and obligations.