Temporary Workers and Their Rights: What You Should Know

In the Netherlands, thousands of people work as temporary agency workers. But what exactly are the rights and obligations of temporary workers? In this article, we explain which rules apply and what both temporary workers and employment agencies need to know about their employment relationship.

What is a temporary agency worker?

A temporary agency worker is an employee who temporarily works for a client company (the hirer) through an employment agency. There is a triangular relationship between the temporary worker, the employment agency, and the hirer. The employment agency is the formal employer of the temporary worker, while the temporary worker performs the work at the client company.

Rights of temporary agency workers

Temporary workers are entitled to the same employment conditions as employees directly employed by the client company, according to the Placement of Personnel by Intermediaries Act (WAADI). This means they are entitled to equal pay for equal work, allowances, vacation days, and leave, as established in the collective labor agreement of the hirer. From day one, the so-called 'hirer's remuneration' applies, meaning temporary workers must receive the same salary as regular employees in comparable positions. In addition, temporary workers are entitled to:

• Vacation days and holiday allowance: Temporary workers accrue vacation days and are entitled to 8% holiday allowance on their gross salary.
• Continued salary payment during illness: Since 2023, temporary workers cannot be dismissed immediately when ill. The employment agency is obligated to continue paying salary for a maximum of two years, depending on the contract duration.
• Pension accrual: Temporary workers accrue pension after 8 worked weeks, and from January 1, 2024, this applies directly from the first working day for temporary workers aged 18 or older.

What are your exact rights?

Your rights as a temporary worker depend on:

• Whether you work for a 'bound' or 'unbound' employment agency (i.e., whether the agency is bound by a collective labor agreement).
• Whether there is a temporary employment clause in your contract.

It is important to carefully review your contract: a temporary employment clause means your contract can automatically end when the work stops at the client company. If you work for an agency bound by a collective labor agreement, additional rights often apply.

Different phases within temporary employment

The phase system for temporary workers in the Netherlands is divided into three phases: phase A, B, and C. Each phase offers different rights and obligations:

1. Phase A: In this phase, lasting a maximum of 52 weeks, the temporary worker usually works on the basis of an agreement with a temporary employment clause. This means the contract automatically ends when the client company has no more work. Do you have a contract in phase A without a temporary employment clause? Then the clause does not apply and the agency cannot simply dismiss you. In this phase, you can work for one or more companies, and it is possible to receive an unlimited number of contracts.No work? The employment agency must notify you in writing whether you will be paid if there is temporarily no work. This may be stated in the contract or confirmed by email. If the agency does not pay when there is no work, they must record this in writing at the start of employment. Otherwise, you may still be entitled to salary when there is no work.
2. Phase B: After phase A, the temporary worker moves to phase B, receiving a fixed-term contract. The temporary employment clause no longer applies, and the worker has more security regarding work and income. Even when there is temporarily no work, you are entitled to salary as long as your contract runs. The agency must continue to pay 100% of your salary. In some cases, the agency will try to find suitable alternative work for you. You are then obligated to accept this offered work.
3. Phase C: Phase C begins after three years of working in phase B or after six contracts. Here the temporary worker receives a permanent contract, comparable to a regular employment contract. If work falls away, the agency must continue paying you 100% in this phase. Sometimes the agency will look for suitable alternative work for you. You are obligated to accept this offered work, provided it is reasonable and suitable.

The role of the employment agency

The employment agency is responsible for correctly complying with employment conditions. This includes paying salary, ensuring a safe workplace, and meeting the rules regarding working conditions. The agency must also comply with the rules of the WAADI Act and the collective labor agreement for temporary workers. Additionally, the agency must:

• Be registered with the Chamber of Commerce.
• Clearly inform the temporary worker about working conditions before placement.
• Comply with the professional qualifications required for the relevant position.

Liability for accidents or damage

Although the hirer is responsible for workplace safety, the employment agency can in certain cases also be held liable for damage suffered or caused by the temporary worker during work. Therefore, it is important that both the agency and the hirer make clear agreements and record them in a contract.

Transition payment for temporary workers

As a temporary worker, you are also entitled to a transition payment as soon as your contract is terminated or not renewed at the initiative of the employment agency. This applies regardless of which phase you are in, provided you do not resign yourself and are at least 18 years old. The transition payment is a statutory compensation that you can use to cover any transition or retraining costs. The amount of the transition payment is determined based on your monthly salary and the number of years you have worked. You accrue this payment directly from your first working day. So it does not matter whether you have a temporary assignment or have been working through the same agency for years. Note: if you decide to quit yourself, you are not entitled to a transition payment. Even if you have a temporary contract that expires by operation of law and is not renewed by the agency, you are still entitled to this payment. This way, as a temporary worker, you are not left empty-handed even when your employment ends.

Salary when there is no work: how does it work in phase A?

In phase A, most temporary workers work with a temporary employment clause. This means the contract automatically ends when the client company has no more work. In that case, the agency is not obligated to continue paying salary once the work stops. Sometimes, however, the temporary employment clause is excluded from the contract. If there is no temporary employment clause in your agreement, you are generally entitled to continued salary payment, even when there is temporarily no work. The agency must clearly state in writing whether the clause does or does not apply. This is usually in your employment contract or an appendix, but may also be confirmed by email. Are you told there is no work and there is no temporary employment clause in your contract? Then you often have the right to salary, even if you are not offered work. Therefore, carefully check your contract and contact FNV or CNV for advice if in doubt. Note: for phases 1 and 2 of the ABU collective agreement, or phase A of the NBBU collective agreement, this works largely the same.

Dismissal in phase A: with or without temporary employment clause

Do you have a contract in phase A (or phases 1 and 2) and are you wondering how dismissal works exactly? The answer depends on the presence of a temporary employment clause in your contract. With temporary employment clause If there is a temporary employment clause in your contract, your temporary employment agreement can end relatively easily. Your contract stops as soon as the company where you work (the 'hirer') indicates that your assignment is finished. You are then only entitled to salary for the hours actually worked. This allows the agency to let you go immediately when there is no more work—without notice period or further procedure. Do you have a contract in phase A (or phases 1 and 2) where the temporary employment clause does not apply? Then stricter dismissal rules apply. The agency cannot simply dismiss you on the spot when work stops at the client company. Without temporary employment clause In such a situation:

• The agency must follow normal dismissal rules, just like with a permanent employment contract.
• You are entitled to a notice period, depending on the duration of your contract.
• If the agency wants to terminate the contract, it must often request permission from UWV or go to the subdistrict court.

Note: If your contract has a fixed duration, it simply expires after the agreed period. Are you dismissed prematurely without valid reason? Then you may be entitled to compensation or continued salary payment for the remaining contract period.

Maternity leave for temporary workers

Are you pregnant as a temporary worker? Then you are entitled to maternity leave, just like other employees. During your leave, you generally receive a pregnancy and maternity benefit through UWV. Even if you become ill as a result of your pregnancy, your salary continues to be paid. It does not matter whether you are in permanent employment or work through an employment agency—the legal protection applies to everyone. So: if you are expecting a baby, discuss your situation with your employment agency in good time. They can inform you about the official arrangements and ensure that your rights to leave and benefits are properly arranged.

Dismissal protection in phase C (or phase 4)

Have you reached phase C (according to the NBBU/ABU collective agreement) or phase 4 as a temporary worker? Then you now have a permanent contract with the employment agency. From this point, your dismissal protection is virtually equal to that of employees with a permanent contract at other employers. This means: the agency cannot simply dismiss you. Dismissal during phase C or 4 is only possible under strict conditions:

• Summary dismissal: This is only permitted for a serious reason, for example in case of theft or gross misconduct.
• With permission from UWV or the subdistrict court: If the agency wants to terminate due to business economic reasons or long-term incapacity for work, approval from UWV is always required. For personal reasons (such as a disrupted working relationship), the subdistrict court must give permission.
• Dismissal by mutual consent: You and the agency can make joint agreements about terminating the contract, recorded in a termination agreement.

You are also entitled to the statutory notice period and in many cases a transition payment. So always stay alert: it is wise to seek advice from a trade union, the Legal Aid Counter, or FNV or CNV when facing dismissal. This way you know for sure what you are entitled to and you are not left empty-handed.

Direct entry into phase B or C: what happens?

Sometimes a temporary worker starts directly in phase B or C, without first having worked in phase A. This can happen, for example, if you have previously done temporary work through another agency or if the nature of the position requires it. If you start directly in phase B, you immediately get more security: you receive a fixed-term contract without a temporary employment clause, so the contract does not simply end when the client company has no more work. If you start directly in phase C, you even have the immediate right to a permanent contract. The usual transition through phase A is then skipped and you benefit more quickly from the advantages that come with more job security. Note: there may be specific agreements in your contract about this entry. It is therefore wise to read this carefully before signing. Do you have questions about your situation or are you unsure about which rules apply? You can always seek advice from trade unions such as FNV or CNV, or consult your collective labor agreement.

Early termination of the contract in phase B or C

For temporary workers in phase B or phase C, there is usually a fixed-term or permanent contract without a temporary employment clause. Early termination by the agency is then not simply possible. Termination before the agreed end date is only permitted if a clear provision is included in the contract, such as an interim termination option. If no such provision is included, the contract in principle continues until the agreed end date. Additionally, the agency must have a legal reason to terminate your contract early, for example in case of seriously culpable conduct. A notice period remains mandatory in most cases. Therefore, always carefully review your contract and employment conditions, so you know exactly where you stand.

Rights at an unbound employment agency

Do you work for an employment agency that is not affiliated with industry organizations such as ABU or NBBU? Even then, you have certain rights as a temporary worker, but some arrangements may differ. The Placement of Personnel by Intermediaries Act (WAADI) still applies, which means you are entitled to the statutory minimum wage, vacation days, and holiday allowance. Additionally, as a temporary worker at an unbound agency, you may not simply be worse off than colleagues directly employed by the client company—this basic protection remains in force. The biggest difference is often in supplementary arrangements, such as additional benefits from a collective agreement or certain leave arrangements. These are not always automatically arranged at an unbound agency. It is therefore wise to carefully read the employment contract and ask which conditions exactly apply. If in doubt, you can always seek advice from a legal advisor or a trade union, so you know for sure where you stand.

Tacit renewal of your contract in phase B

In phase B (or phase 3 with some collective agreements), there is usually a fixed-term contract with an agreed end date. But what if that end date passes and you simply continue working, without anything new being explicitly agreed? Then a so-called 'tacit renewal' occurs. This means that your existing contract is effectively automatically continued, under the same conditions as before. Note: this renewal is not unlimited. In phase B, you may receive a maximum of six contracts within a period of three years. If you continue working after that period without further agreements? Then you may be entitled to a permanent contract. In short, keep a close eye on when your contract expires and discuss a possible extension with your employment agency in good time, so you know for sure where you stand.

Contracts with an end date in phase B and C

A contract in phase B or phase C often contains a clear end date. You therefore know in advance until when your contract runs. On this agreed date, your employment automatically ends, unless you and the agency decide to extend the contract before the end. What happens if you continue working after the end date, without anything being agreed? Good news: then your contract is tacitly renewed and your original employment conditions simply continue. So you are not suddenly out of work or security. Note: does the agency want to terminate your contract early—i.e., before the end date? Then this is only permitted if this is clearly stated in your contract and the agency can demonstrate a good reason. Protecting your rights takes priority here.

Am I entitled to a notification compensation in phase B or phase C?

Do you work as a temporary worker in phase B or C and do you have a temporary contract of six months or longer? Then the employment agency has a notification obligation. This means you must hear in writing at least one month before the end of your contract whether your contract will be extended or terminated. If this notification is late, you are entitled to a notification compensation of a maximum of one month's salary. Note: this obligation only applies to contracts with a clear end date. Do you have a contract without a fixed end date (for example, a contract with a temporary employment clause in phase A)? Then no notification compensation applies.

Working for an unbound employment agency: what does that mean for your rights?

Are you working through an employment agency that is not affiliated with ABU or NBBU? Then it is good to know that not all rules from the ABU or NBBU collective agreement automatically apply to you. However, as a temporary worker, you still have legal rights that offer protection:

• Employment conditions: Even at an unbound agency, you are entitled to the minimum wage, holiday allowance, and vacation days. You fall under general legislation, such as the Civil Code and the WAADI.
• Hirer's remuneration: It often applies that, just like at other agencies, you are entitled to the same remuneration as permanent employees of the client company. This is established in the WAADI.
• Continued salary payment during illness: You may not simply be dismissed when ill. The statutory rules regarding salary continuation and protection during illness apply.
• Pension accrual: Even when no collective agreement applies, you may be entitled to pension accrual according to statutory rules.

Note: the exact employment conditions may differ, as unbound agencies do not have to adhere to the collective agreement. Therefore, always carefully check your contract and ask for clarification if there is any uncertainty. This way you know for sure where you stand as a temporary worker.

What rights do I have when working for a bound employment agency?

If you work through an employment agency affiliated with an industry organization such as ABU or NBBU, you can count on additional guarantees and clear agreements. Your employment conditions are strictly regulated, and you gradually build up more rights, depending on the phase you work in. The most important rights at a bound employment agency at a glance:

• Continued payment during illness: If you become ill, your salary continues according to the applicable rules, even during pregnancy-related illness.
• Maternity leave: You are entitled to pregnancy and maternity leave, just like permanent employees.
• Right to a permanent contract: If you reach the longest phase (phase C), you are entitled to a permanent contract. This usually happens after four years of working through the same agency.
• Resigning from your job: You may in principle resign, unless your temporary contract specifically states that this is not possible until the end date.
• Transition payment: When your contract ends, you are entitled to a transition payment under certain conditions.

Your exact rights also depend on the phase ('A', 'B', or 'C') of your employment contract and whether there is a temporary employment clause.

Difference between bound and unbound employment agencies

Not all employment agencies are equal when it comes to employment conditions. In the Netherlands, we distinguish between bound and unbound employment agencies. But what does this mean for you as a temporary worker? Bound employment agencies These agencies are affiliated with industry organizations such as ABU or NBBU. Working through a bound agency has several clear advantages. You fall under a collective agreement that offers additional protection, for example:

• Continued payment during illness, also during your pregnancy;
• Right to maternity leave;
• Possibility of a permanent contract after four years of service;
• Right to a transition payment when your contract ends;
• Often more clarity about your termination options.

Note: the exact rights depend on the phase of your contract and whether there is a temporary employment clause. Unbound employment agencies If you choose an unbound (non-affiliated) employment agency, less strict rules apply. You may have different or less extensive rights, because you do not automatically fall under the collective agreement of the major industry organizations. As a result, agreements about illness, continued payment, or permanent contracts can differ per agency. Are you unsure whether your agency is bound? Ask or check the websites of ABU or NBBU for an overview. This way you know exactly where you stand.

Why legal help for temporary work?

Whether you are a temporary worker, employer, or employment agency, it is important to know your rights and obligations. The rules surrounding temporary work can be complex and in some situations legal advice may be necessary, for example in disputes about salary, dismissal, or working conditions. At Arslan Advocaten, we have years of experience in employment law and help both temporary workers and employment agencies and hirers in resolving legal issues. Our team is ready to advise and guide you, whether it concerns mediation or court proceedings.

Conclusion

Temporary workers in the Netherlands have clear rights, which are often equal to those of permanent employees. It is essential that temporary workers, employment agencies, and hirers are aware of the rules to prevent conflicts. Do you have questions about your rights as a temporary worker or as an employer? Contact Arslan Advocaten today for expert legal advice.