Stricter rules for employment agencies to protect migrant workers against exploitation

The Netherlands is tightening the rules for employment agencies to prevent the exploitation of migrant workers. To ensure that the new rules are properly adhered to, the Labor Inspectorate will be expanded with 90 full-time jobs.

Minister Karien van Gennip of Social Affairs and Employment said that in a bill sent to parliament on Tuesday. The Minister noted that employment agencies currently circumvent rules, leading to “distressing situations” for migrant workers.

“Too often, migrant workers in the Netherlands are treated as second-class citizens. They sleep in poor conditions and work in dangerous places with insecure contracts. Rogue employment agencies abuse their vulnerable position and make money from it. That is unworthy of the Netherlands,” said Van Gennip.

Under the new rules, the agencies must, among other things, submit a Certificate of Good Conduct (VOG) and pay a deposit of 100,000 euros. They must also demonstrate that they pay the correct wages and pay their taxes properly. Parties that use the services of employment agencies may only do business with companies that adhere to those rules.

Violations of the new rules will result in fines or even suspensions if the situation does not improve. There are currently over 15,000 employment agencies in the Netherlands. The Ministry expects the new rules will apply from 1 January 2026.

Trade organization ABU for temporary employment companies is optimistic about the proposal but says it will continue to monitor its further development critically. “The admissions system should lead to a better position for temporary workers, more quality, and a more level playing field in the industry. I applaud that,” said director Jurrien Koops. The ABU will pay close attention to the affordability and feasibility of the final law, among other things.

CNV is also enthusiastic about the law to tackle rogue employment agencies. “Temporary employment agencies are a major cause of abuses in the labor market,” said chairman Piet Fortain, referring to issues like underpayments and industrial accidents. “The sector has previously had the opportunity to put its affairs in order. That did not happen, so this legislation is desperately needed. We expect this law to prevent hundreds of accidents and distressing situations.”