The new collective Labour agreement (CLA) for temporary agency workers took effect on 1 January 2026. From that date, agency workers are entitled to employment conditions equivalent to those of employees of the hirer in comparable positions. This goes significantly further than the previous hirer’s remuneration rules and aligns with the objectives of the draft
The Netherlands
OECD 2025 update
The OECD has published the 2025 update of the Model Tax Convention (MTC) and its accompanying Commentary. This update contains tightened guidelines on the concept of a permanent establishment, particularly in situations where employees work cross‑border and remotely.
When a company has a permanent establishment in another country, this can have consequences for corporate income…
Supreme Court: temporary agency work must truly be temporary
The Dutch Supreme Court has recently confirmed that temporary agency work must, by definition, have a temporary nature, as required by the European Temporary Agency Work Directive. This ruling is significant for organisations that deploy agency workers for long periods: a general need for flexibility is insufficient to justify prolonged use of agency workers.
The…
Draft bill: reporting obligation for labour providers in case of workplace accidents
The draft bill Act on Introducing a Reporting and Verification Duty for Labour Providers in Case of Workplace Accidents is currently under consideration in the Parliament. The proposal follows two reports on the living and working conditions of labour migrants, which included recommendations to strengthen the structural position of this group. One of the proposed…
New Labour Intermediation Admission Act combats rogue employment agencies
On 11 November 2025, the Dutch Senate approved the Labour Intermediation Admission Act (Wet toelating terbeschikkingstelling arbeidskrachten). This law aims to combat rogue employment agencies and improve the protection of workers – especially Labour migrants. The Act amends the Waadi and introduces a mandatory licensing system for all organisations that supply workers, including…
No pay transparency reporting in The Netherlands in 2026
On 26 March 2025, the government published a draft bill to implement the European Pay Transparency Directive (EU 2023/970). The Directive, which has been in force since 6 June 2023, must be transposed into national legislation by all member states. Its aim is to strengthen equal pay between men and women by providing greater insight…
Personnel Retention in Times of Crisis Act
On 26 September 2025, the Dutch government submitted the Personnel Retention in Times of Crisis Act (Wet personeelsbehoud bij crisis) to the Council of State for review. The Act is intended to help employers retain staff during unexpected crises – such as pandemics, wars or natural disasters – so that layoffs can be…
Full vacation accrual during dormant employment contracts
In a recent ruling, the Court of Gelderland held that long-term sick employees continue to accrue statutory vacation days throughout the entire period of illness, even after the two-year waiting period and regardless of whether they receive salary or perform work.[1] The court based its decision on European law, setting aside the Dutch Civil…
Cross-border employment: EU ruling clarifies ‘substantial part’
On 4 September 2025, the Court of Justice of the European Union issued a judgment clarifying how to determine whether an employee performs a “substantial part” of their work in their Member State of residence under Regulation (EC) No 883/2004 and its implementing regulation No 987/2009.[1]
According to Article 13(1) of Regulation 883/2004, an…
Updated labor office rules for dismissal due to economic reasons
As of 1 July 2025, the Dutch labor office (UWV) has updated its implementation rules for dismissals due to As of 1 July 2025, the Dutch labour office (UWV) has updated its implementation rules for dismissals due to business or economic reasons. These rules guide employers through the dismissal approval process, including the legal framework…