On Wednesday, March 12, 2025, an extensive debate took place in the House of Representatives regarding the Act on the Licensing of Labor Supply Agencies (Wtta).
The debate highlighted the complexity of implementing a licensing system for employment agencies. Although there is support for the law’s objectives, concerns remain regarding its feasibility, administrative burdens, and legal certainty. Companies subject to the Waadi should be aware of these developments and their potential impact on their business operations.
Support for the Wtta, but Concerns About Implementation
The House of Representatives broadly supports the Act on the Licensing of Labor Supply (Wtta), but has reservations regarding its implementation. During the debate with Minister Van Hijum (SZW), concerns were raised about enforcement, legal certainty, and rising costs.
A key point of discussion is the possibility of a sector-wide ban on temporary staffing in cases of systemic abuses. Some parties advocate for such a measure, while the minister considers this premature and wants to await further investigation first. The legal protection of bona fide staffing agencies is also a topic of debate. The VVD argues that the lack of suspensive effect in appeal proceedings could lead to problems, while the minister warns that this could encourage abuse.
Rising costs and limited inspection capacity spark debate
In addition, there is criticism of the rising costs of the licensing system. The application fees, initially estimated at €490, have since risen to a maximum of €2,800. Inspection capacity is also proving to be a bottleneck. The minister acknowledges that not all businesses can be inspected immediately and expects it will take another two years before the inspections are fully operational. In the meantime, businesses may continue to operate under certain conditions, such as holding an SNA certificate.
Doubts About the Law’s Effectiveness
Some members of parliament doubt whether this law actually contributes to combating malpractice in the temporary employment sector. Alternative proposals, such as a greater role for the Labor Inspectorate and the expansion of G-accounts, are being put forward as potentially more effective solutions. The minister, however, remains convinced of the strength of the system, which combines public regulation and sector accountability.
The debate will continue on March 27.
Source: Flexnieuws