The Dutch Labor Supply Licensing Act will introduce a mandatory licensing system for companies that supply temporary workers. This legislation will affect both staffing agencies and the companies that hire temporary workers. Once the law is in force, only licensed providers will be allowed to supply labor, and hiring from unlicensed agencies may result in substantial fines. The goal of the Act is to improve the position of temporary workers and create fair competition in the labor market.

For companies hiring temporary workers, the Act brings several practical obligations. In cases of subcontracting or chain hiring, the final hirer must check the license status of all parties involved – not just the direct contractor, but also any subcontractors. Hirers may also be subject to inspections regarding wage parity and must cooperate with authorities to avoid penalties. Temporary workers must receive employment conditions that are at least equal to those of the hirer’s own employees.

Although the law primarily targets labor suppliers, it is equally relevant for employers. They must verify that staffing agencies are licensed via the public register, prepare for inspections, and ensure full compliance to avoid legal and financial risks.

The Act was adopted by the Dutch House of Representatives on 15 April 2025. If approved by the Senate after summer 2025, the law will take effect on 1 January 2027. The licensing requirement will be enforceable from 1 January 2028, after which both suppliers and hirers who fail to meet registration and cooperation obligations may face fines.