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A mandatory licensing system for the flex sector

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Act on the Licensing of the Provision of Workers (Wtta)

The Act on the Authorization of the Provision of Workers (Wtta): a new mandatory authorization system for temporary staffing agencies, payroll companies, and secondment agencies. Under this Act, businesses that provide workers must obtain official authorization from the Ministry of Social Affairs and Employment.

On April 15, the House of Representatives approved the Act by a large majority. On November 11, the Senate also approved it, thereby definitively enacting the Act.

The Act on the Authorization of the Provision of Workers (Wtta) will take effect on January 1, 2027. This date was previously confirmed by the Minister of Social Affairs and Employment in a letter to the House of Representatives and has remained unchanged following the law’s final enactment.

What is the Wtta?

The Act on the Authorization of the Provision of Workers (Wtta) is a new mandatory system that imposes strict requirements on staffing agencies, payroll companies, and secondment firms. An official license from the Ministry of Social Affairs and Employment is required to provide temporary workers, with the aim of improving the conditions for migrant workers and creating a level playing field.

If a staffing agency has not obtained authorization by the time the law takes effect, it will be prohibited from placing workers. If the staffing agency violates this prohibition, it risks a fine. Clients who use workers from unlicensed agencies may also be fined.

Why the Wtta?

In 2021, the committee led by Emile Roemer published a report on the working conditions of migrant workers in the Netherlands. The report’s conclusions were quite critical of the role of some staffing agencies and the overall treatment of migrant workers. It was determined that there were abuses in the temporary employment sector and, in some cases, degrading conditions, such as poor housing, unsafe working conditions, and exploitation. Tackling unscrupulous temporary employment agencies was seen as a crucial step toward improving the situation of migrant workers in the Netherlands.

The Wtta is coming, how do I prepare?

The Act on the Admission and Provision of Workers (Wtta) will take effect on January 1, 2027. The current SNA quality mark will form the basis for the Wtta standards framework. Additional requirements will be imposed on top of that. How do you prepare for this as a company that provides workers? And what steps can you take right now?

The Act on the Authorization of the Provision of Workers (Wtta) sets requirements for staffing agencies, payroll companies, and secondment firms. They must obtain official authorization from the Ministry of Social Affairs and Employment to be permitted to provide workers. The Dutch Labor Inspectorate is responsible for enforcing this regulation. If a labor provider has not yet obtained authorization before the Wtta takes effect, the temporary staffing of workers will be prohibited. If the staffing agency violates this prohibition, it risks a fine. Clients who hire workers from unauthorized agencies may also be fined.

Het voorblad van de WTTA digital brochure verstrekt door Normec VRO

Read the brochure about

  • How did the Wtta come about?
  • What are the requirements for authorization?
  • The transitional arrangement
  • Wtta Standards Framework
  • How can I prepare in time?
  • Wtta baseline assessment
  • Tips

Timeline

  • November 1, 2026 – Start date for applying for transitional provisions

Staffing agencies wishing to make use of the transitional provisions must register with the Ministry of Social Affairs and Employment. Registration is open from November 1, 2026, through January 1, 2027. This allows you to continue staffing out personnel while your license application is being processed.

  • January 1, 2027 – Official effective date and start date for license applications

The Act on Authorization for the Temporary Assignment of Workers (Wtta) officially enters into force. Starting on this date, staffing agencies can begin applying for authorization.

  • No later than July 1, 2027 – Deadline for submitting authorization applications

All staffing agencies must have submitted their authorization applications to the ministry by this date. Timely action is essential to remain compliant.

  • January 1, 2028 – Start date for enforcement

The Dutch Labor Inspectorate will begin enforcement. Staffing agencies without authorization risk a fine. This fine also applies to client companies that work with unregistered staffing agencies.

Who is subject to the Wtta?

The mandatory licensing requirement applies to all companies, both within and outside the Netherlands, that fall under the Act on the Allocation of Workers by Intermediaries (Waadi). This means that, in addition to temporary staffing agencies, sub-lenders, payroll companies, and secondment agencies must also comply with this law and are part of the Wtta target group. It is the responsibility of the user companies to verify whether the lender is registered in the public licensing registry. In some cases, you are exempt from the mandatory licensing requirement.

Licensing Requirements for the Wtta

Temporary staffing agencies, payroll service providers, and secondment agencies must meet the requirements of the licensing system. This consists of four parts:

  • The Standards Framework
  • Demonstrable compliance with the standards framework
  • The VOG RP
  • A security deposit

Learn more about the requirements, what exceptions exist, and how to prepare for mandatory accreditation in our brochure “Ready for the Wtta.”

News

Latest developments regarding the Wtta

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16 Jun 2025

Temporary workers and Wtta

When you deploy temporary workers through another party, such as an employment agency, you are acting as a hirer. The Wtta, Waadi, the SNA label - Hirers are surrounded by abbreviations. It is therefore important to understand what these regulations mean for your organization. One of the most recent developments is the Wet toelating terbeschikkingstelling van arbeidskrachten (Wtta).

24 Apr 2025

WTTA takes effect from 2027

On April 15, 2025, the House of Representatives approved the Law on the Admission of Workers (WTTA). Now the intended time frame is also clear: on January 1, 2027, the new admission system will enter into force. This was announced by Minister Van Hijum of Social Affairs and Employment in a letter to the House of Representatives.

21 May 2026

Wtta delayed until Jan. 1, 2026

Outgoing Minister Karien van Gennip of Social Affairs and Employment has indicated in a letter dated 13-05-2024 and a follow-up letter dated 14-05-2024 to the Lower House of Parliament that the current timetable of the Law on the Admission for the Posting of Workers (Wtta) with an intended effective date of January 1, 2025 is no longer feasible. In any case, the entry into force cannot be sooner than January 1, 2026, with which there will be a ban on the posting of labor without authorization no earlier than January 1, 2027.

19 Feb 2026

WTTA in practice: what more than 100 additional Module WTTA inspections teach us

More than 100 additional WTTA inspections by Normec VRO show what temporary employment agencies are really up against. What emerges above all is that the biggest challenge rarely lies in one single standard requirement. The complexity of the WTTA standards framework lies in the concurrence of existing and tightened regulations.

22 Apr 2025

Wtta passed: why acting now is critical

On April 15, 2025, the House of Representatives passed the Law on the Admission of Temporary Workers (Wtta) with a large majority. This law introduces an obligation of admission for all companies that post workers. The goal: more control over the temporary employment sector, better protection of workers - especially migrant workers - and a fair playing field for all parties involved.

11 Mar 2026

Wtta and housing: SNF certification becomes legal requirement for admission

With the entry into force of the Workforce Admission Act (WTTA), the positioning of housing is fundamentally changing.

21 May 2026

House critical of Wtta: Support with reservations

On Wednesday, March 12, 2025, an extensive debate took place in the Lower House of Parliament on the Law on the Admission for the Posting of Workers (Wtta). The debate emphasized the complexity of introducing an admission system for labor intermediaries. While there is support for the objectives of the law, concerns remain about its enforceability, administrative burden and legal certainty. Companies subject to the Waadi should be aware of these developments and the potential impact on their operations.

Frequently asked questions about Wtta

The Wtta applies to all companies, both inside and outside the Netherlands, that fall under the Law on allocation of labor forces by intermediaries (Waadi). This means that in addition to temporary employment agencies, hirers, payroll companies and secondment agencies must also comply with this law. It is the responsibility of hirers to check whether the hirer is registered in the public admission register.

In the following cases, you are exempt from the mandatory admission:

- Companies that lend personnel within their own concern (intra-group posting);

- Companies that lend personnel collegially as a form of assistance, where only labor costs are passed on;

- Companies whose turnover from loaned personnel is less than 10% of total turnover and does not exceed 5 million euros in 12 months may apply for exemption from the Minister.

The law enters into force on January 1, 2027. The admission obligation and enforcement start on January 1, 2028. Companies must therefore arrange admission in 2027.

To be allowed to lend labor from January 1, 2028, your company must be admitted. The application must be submitted digitally to the Dutch Authority Uitleenmarkt (NAU) , no later than July 1, 2027. For the application, an inspection must have been carried out by a recognized inspection body. The admission must be reapplied for every four years thereafter.

Yes, there is a transitional arrangement. Application is possible between 01-01-2026 and 31-12-2026. In addition, during the first 6 months after coming into force, being 1-1-2027 until no later than 1-7-2027, an application for admission is required. Then you are eligible for the transitional law, where you easily enter the admission system.

The transitional system consists of three tracks. You can learn more at Wtta - Normec VRO.

No, the Wtta also applies to foreign companies that provide labor in the Netherlands. They too must apply for authorization and comply with the standards framework and obligations of the authorization system.

For companies that provide labor, the SNA hallmark will expire and the Wtta will become mandatory. The new standards framework is based on the SNA standards framework, but contains additional requirements, for example for employment contracts, payroll relations, accommodation of labor migrants and timekeeping. For some other activities the SNA seal of approval will remain.

Factoring can indeed provide a solution for financing the security deposit within the Workforce Investment Act (WTTA). Here's how it works:

What is factoring? Factoring is a form of financing in which a company sells its outstanding invoices to a factoring company (factor). In exchange, the company receives a percentage of the invoice value, often between 70% and 90%, directly from the factor. The factor then assumes the risk of non-payment and takes care of collecting the invoices.

How can factoring help with security deposits? The WTTA requires staffing agencies and other employment intermediaries to post a deposit as security for their financial reliability. For some companies, however, it can be a challenge to cough up this deposit all at once. This is where factoring can help:

- Freeing up working capital: By converting invoices into readily available liquidity through factoring, a company can quickly have cash on hand. This liquidity can then be used to pay the deposit without the company having to draw on its reserves or other sources of financing.

- Avoiding additional debt: Because factoring is not a traditional loan, it does not increase the company's debt load. This can be beneficial for companies looking to keep their balance sheet healthy.

- Flexibility and speed: Factoring can often be set up quickly, which is helpful if the deposit needs to be available at short notice.

Important to consider: Factoring is not without cost, however. Factoring companies typically charge a percentage of the invoice value as a fee. It is important to weigh these costs against the benefits of immediate liquidity. In addition, it is essential to choose a reliable factoring partner, as it can have a significant impact on cash flow and customer relationships.

If you are considering factoring for security deposit financing, it may be wise to discuss this with a financial advisor or factoring company to understand what this means specifically for your situation.