Temporary agency work revolves around a triangular relationship between the temporary agency worker, the employment agency (supplier) and the client (hirer). The phase system (A-C) determines what rights and securities the temporary agency worker has. From day one, equal pay as at the hirer applies in principle, and the agency clause cannot be invoked during illness. Both the hirer and the employment agency have a duty of care. Flexible deployment is possible, but requires careful compliance with laws and regulations.
Table of contents
A. From agreement to hiring
B. Position and obligations of the hirer
C. Position and obligations of the supplier (employment agency)
D. Position and rights of the temporary agency worker
Phase system: phase A, B and C (overview)
Frequently asked questions
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A. From agreement to hiring
The hirer enters into an agreement with the employment agency for the provision of labour. The general terms and conditions of the agency usually apply. The employment agency must, among other things:
be registered in the Trade Register;
comply with the WAADI (including no provision of labour during strikes/occupation; clear information about the workplace, activities, working conditions and required qualifications);
share the job and workplace details provided by the hirer in writing with the temporary agency worker.
Key characteristic: freedom of parties at the front end.
The hirer does not have to give an assignment or accept a specific temporary agency worker.
The employment agency is not obliged to carry out an assignment.
In phase A with agency clause, the temporary agency worker can refuse assignments; in later phases, this freedom decreases.
When does the CLA for temporary agency workers apply?
A collective labour agreement (CLA) usually applies to temporary agency workers — typically the CLA for Temporary Agency Workers (ABU or NBBU). This CLA applies in the following situations:- The employment agency is affiliated with ABU or NBBU: In that case, the corresponding CLA automatically applies to the temporary agency worker.
- Generally binding provisions: Even if the agency is not affiliated with a trade organisation, the CLA still applies if it has been declared generally binding.
- Individual agreements: Sometimes the employment contract explicitly states that the temporary agency CLA applies; in that case, it is also leading.
Costs of hiring temporary agency workers
When deploying temporary agency workers, the hirer incurs more costs than just the gross wage. The employment agency charges a surcharge on top of the temporary agency worker's gross wage — the so-called margin. This margin covers various services and obligations of the employment agency, such as:- Recruitment and selection of suitable candidates;
- Administrative organisation and payroll processing;
- Handling of social premiums and payroll tax;
- Guidance of the temporary agency worker and any sick leave notifications.
Secondment by professional and internal lenders: important differences
Not every form of lending out personnel automatically falls under the special rules for temporary agency workers and the phase system. The distinction lies mainly in who "the lender" is, and for what purpose. Professional lenders- These are organisations that have made lending out employees their core business (think of Randstad, Adecco).
- The CLA for temporary agency workers applies in full here, including the 52-week rule and the phase system (A-C).
- These parties fulfil an allocation function in the external labour market, i.e. matching labour "from outside" with clients.
- Sometimes an organisation lends out employees within its own group, for example from parent to subsidiary, or vice versa.
- In those situations, there is no "professional lending" according to the law, but internal deployment. There is then no allocation function for the external labour market.
- The temporary agency CLA does not apply here, and the familiar rules regarding the phase system do not apply. The 52-week rule may be disregarded.
- Intra-group secondment cannot fall under phase A: an employment contract for a fixed or indefinite period is created directly, often with immediately more rights and less flexibility regarding dismissal. An exception applies for the first 26 weeks: the obligation to continue paying wages may be excluded.
B. Position and obligations of the hirer
Duty of care and liability
The hirer must exercise the same care for the temporary agency worker as for their own staff (safety, health and safety, instructions, supervision). In many contracts, the employment agency (partly) excludes its own liability and requests an indemnification from the hirer; however, the agency can be liable in exceptional cases of serious failure.
Liability in practice The temporary agency worker can hold the hirer directly liable as if the hirer were their own employer. This means that the hirer, just as with their own employees, must ensure a safe working environment and appropriate instructions. If this duty of care is breached and damage occurs, the hirer can be held liable for injury or damage to the temporary agency worker, but also for damage suffered by third parties through the actions of the temporary agency worker. In practice, the employment agency often requires an indemnification from the hirer: if the temporary agency worker suffers or causes damage, the hirer usually bears the costs. Only when the temporary agency worker acts intentionally or with conscious recklessness can the hirer try to recover the damage from them; in the case of ordinary mistakes or inattention, the hirer remains liable. Exceptions to the rule Although the employment agency usually fully excludes its liability, there are exceptions. In special situations — for example when the employment agency seriously fails in its obligations, such as continuing to deploy a temporary agency worker who has been repeatedly arrested for theft — it may be unreasonable for the agency to exclude all liability.Assignments and termination
Duration and termination options follow from the hiring agreement.
For assignments of indefinite duration, a reasonable notice period is customary; for fixed-term assignments, no interim termination applies in principle, unless expressly agreed.
Termination for unjustified reasons (e.g. discrimination) can lead to liability for damages.
Remuneration and time sheets
From day one, the hirer's remuneration generally applies: wages and fixed allowances in accordance with the position at the hirer.
Hours registration via time sheets forms the basis for invoicing to the hirer and wage payment to the temporary agency worker.
Payroll construction (brief explanation)
With payroll, the agency mainly takes over the administration and wage payment; recruitment and daily management lie with the hirer. Advantages: fewer administrative burdens and sickness risk at the agency. Contractual and legal diligence remains required.
C. Position and obligations of the supplier (employment agency)
The employment agency is the formal employer: it pays wages, withholds and remits premiums, and arranges recruitment, selection and often training.
In the event of illness, continued wage payment applies according to the CLA/law; the agency clause lapses during illness and cannot then lead to termination of the contract. The agency ensures safe deployment, suitable placement and correct provision of information.
D. Position and rights of the temporary agency worker
Registration and information
Upon registration, the temporary agency worker agrees for which work, which wage and which hours they are available. Employment history (including through other agencies) is relevant for phase counting and can influence salary classification and rights.
Changing employer, but not changing work
It can happen that a temporary agency worker does not actually change workplace, but does change employer — for example when they enter direct employment with the hirer, or continue working at the same location through a different employment agency. In these situations, the original employment agency loses its role as employer; wages and further employment conditions are now handled by the new employer. Please note: employment agencies often have rules regarding re-placement. Sometimes the temporary agency worker is obliged to report if they are going to do the same work through another party. The employment agency may in such a case claim compensation (think of recruitment costs or a kind of 'transfer fee') when the hirer takes over the temporary agency worker. However, such provisions are not always enforceable — especially if they constitute an obstacle to freely hiring or switching to the hirer. After a certain period (often 26 to 78 weeks in the industry — depending on agreements or CLA), such compensation usually lapses. In short: if the temporary agency worker stays with the hirer but switches employer, it is good to know which agreements apply, and whether any cost clauses hold up. This depends on the duration of the deployment and the agreements in the contract.Employment contract and duration
The temporary agency worker has an employment contract with the employment agency (art. 7:690 Dutch Civil Code), while the work is actually performed at the hirer. The contract form and securities depend on the phase.
The phase system and statutory regulations compared
The phase system from the CLA works differently from the statutory rules for temporary agency workers. Instead of one fixed term such as the 26 weeks from the law (art. 7:691 paragraph 1 Dutch Civil Code), the CLA has different phases: A, B and C. Each phase gives the temporary agency worker more accumulation of rights, such as more certainty about contract duration and income. The transition to the next phase — and thus expansion of rights — depends not only on the duration of work, but also on the number of weeks worked and whether they work through different employment agencies. In practical terms, this means that the phase system can bring both advantages and disadvantages for temporary agency workers compared to the basic protection from the law, depending on one's situation.Phase system: from flexible to permanent
Phase A — accumulation of 52 weeks worked
Usually with agency clause: the agreement ends when the assignment stops. Without agency clause is also possible.
Interruption < 26 weeks: counting continues; ≥ 26 weeks: phase starts over.
Notification/announcement to the temporary agency worker is required as the duration progresses; in the event of late notification, wages for the period may be owed (or suitable work must be offered).
Illness: the agency clause cannot be invoked; continued wage payment according to CLA/law.
In practice: in phase A, the temporary agency worker can often still refuse work; as securities increase, the obligation to accept suitable work increases.
Phase B — fixed-term employment contract
No more agency clause.
More security: continued wage payment for the contract hours, even when temporarily without work or during illness (according to CLA/law).
Duration: maximum three years and six contracts (with short interruptions the counting continues).
Interim termination is only possible if this is agreed in writing and expressly; the agency in principle needs a dismissal route (UWV/subdistrict court).
Phase C — permanent employment contract
No agency clause.
Regular dismissal rules apply (UWV or subdistrict court; redeployment and reflection rules play a role).
Continued wage payment when there is no work and during illness according to CLA/law; the temporary agency worker must accept suitable work.
Overview per phase (summarised)
Phase A
52 weeks worked (counting continues with interruption < 26 weeks).
Often with agency clause; not applicable during illness.
Notification/announcement depending on duration; if late: wages or suitable work.
Contracts for fixed term, no agency clause.
Maximum 3 years / 6 contracts (unless longer interruption).
Continued wage payment for contract hours; limited interim termination.
Phase C
Indefinite term, regular dismissal route.
Continued wage payment and obligation to accept suitable work.
Frequently asked questions
May the hirer stop midway?
Only if this is agreed in the hiring agreement. For fixed-term assignments usually not, except with explicit clauses.
Does the temporary agency worker receive wages when there is no work?
Phase A with agency clause: when the assignment ends, the obligation to continue paying wages usually ends (except during illness).
Phase A without agency clause / B / C: continued wage payment according to contract/CLA; suitable work must be accepted.
How does remuneration work?
The hirer's remuneration applies from day one: wages and fixed allowances according to the position at the hirer.
What if the temporary agency worker becomes ill?
The agency clause cannot be used for contract termination. Continued wage payment according to CLA/law; note the waiting day and percentage rules.
Can a temporary agency worker switch to the hirer?
Yes. Sometimes contracts include a transfer or mediation fee; the legal validity thereof depends on the wording and circumstances.
Help from Arslan Advocaten
Do you have questions about the phase system, hirer's remuneration, termination or ending, or a dispute about continued wage payment or duty of care? The employment law lawyers of Arslan Advocaten advise and litigate for temporary agency workers, employment agencies and hirers. We think along practically and ensure that you are contractually and legally in order.
Contact us via the website or call us — we will think along with you immediately.