BeNe Employment Newsflash #3

Netherlands

The Admission for Allocation of Workers Act: License required to post workers

Introduction

On 15 April 2025, the House of Representatives of the Netherlands adopted the Admission for Allocation of Workers Act. The act introduces a licensing system for employment agencies and other companies that post workers to hirer companies.

If the Senate accepts the act, companies that want to post workers to another company will first have to get a license from the Minister of Social Affairs and Employment. The law is scheduled to amend the Workers Allocation by Intermediaries Act (Waadi) and should enter into force on 1 January 2027. The license requirement will become mandatory from 1 January 2028.

This newsflash outlines the content of the admission system and its implications for companies that post workers and companies that hire workers from such companies.

 

Key criteria for the license

To obtain the license from the Minister of Social Affairs and Employment, a company that wants to post workers must:

• submit a Certificate of Conduct (Verklaring omtrent gedrag (VOG));
• pay a deposit of EUR100,000; and
• demonstrate compliance with existing employment laws.

The obligation to comply with employment laws includes confirming compliance with the Minimum Wage Act, that all taxes have been correctly paid, that the workers have the right to work in the Netherlands and that the workers receive the same wage as employees of the hirer company in similar positions.

The license must be obtained before the first worker is posted to another company and a hirer can't hire a worker from a company that has not obtained a license. The hirer will be able to check this in a public register. A license is valid for four years.

The license requirement applies to every company that posts a worker, against a fee, to another company to work under the management and supervision of that company. So this not only applies to regular staffing agencies but also to payrolling companies (Employer Of Records – EORs) and other companies that professionally post a group of workers to other companies.

Exceptions

Companies that supply workers only to a very limited extent can apply for an exemption from the admission requirement. The Minister will grant an exemption if:

• the posting company has paid wages for a period of at least 12 months;
• the total fees received for posted workers represent less than 10% of turnover; and
• the total fees for posted workers do not exceed EUR5 million.

Specific industries might also be exempted from the licensing system. This currently only applies to private security providers, but the Minister might also designate other industries.

Supervision and enforcement against companies that post or hire workers without a license

The Netherlands Labor Authority will, similar to the current situation, continue to supervise and enforce the applicable employment laws (eg Minimum Wage Act, Foreign Nationals Act, Working Conditions act). Going forward, it can also start enforcement actions against companies that post or hire workers without the required license.

Companies that post workers to other companies will also regularly confirm that they will comply with the applicable employment laws. These companies will have to confirm this by providing a report from a private institution that carries out an inspection at the company. If a company fails to meet the requirements, or if it has violated any of the employment laws, the license can be suspended or revoked, which means it can no longer post workers to other companies. A decision to deny, suspend or revoke admission can be contested via administrative law proceedings.

 

Belgium

Employee posting and labour leasing in Belgium: Key legal considerations

Like in the Netherlands, the practice of “posting” or “leasing” employees between companies – especially within corporate group entities – is also a hot topic in Belgium.

But it also brings legal risks, particularly given the strict Belgian rules around illegal labour leasing.

 

(Illegal) labour leasing

Illegal labour leasing occurs when an employer (employer A) places its employees at the disposal of another company (employer B), and employer B can exercise employer's authority over those employees – eg by supervising them or giving them direct instructions on how to carry out the work, the ability of disciplinary action, justification of leave etc. – without a legal basis.

This creates a triangular relationship where employer B acts as the actual employer, while the employee is formally employed by employer A, which is not allowed unless specific legal exceptions apply.

Legal exceptions to the prohibition

There are a few narrowly defined exceptions where labour leasing is permitted, ie with the prior authorization of the competent authority, or under specific legally defined circumstances, of which the most used are:

• Via interim agencies: Temporary staffing is allowed through licensed interim agencies, but only for specific, legally defined reasons (eg to handle a temporary increase of work).
• Temporary leasing with transfer of employer authority from employer A to B, subject to certain conditions:
• Employee leasing cannot be the company's core business (this is reserved for licensed interim agencies).
• Employees with fixed-term contracts cannot be leased to another company.

• It’s for a limited period in time.

• Conclusion of a written three-party agreement, to be signed before the leasing by all parties (employee, employer A and employer B; not needed in some sectors, though).
• Prior authorisation from the social inspectorate and the trade union delegation (or the employee representatives at sector level).

This authorisation requirement isn't needed and can be replaced by a notification to the social inspectorate within 24 hours, if the leasing occurs:

• within the same economic and financial group of companies; or
• in execution of short-term specialised assignments that require specific expertise of which the user (employer B) cannot be reasonably expected to have in-house 

Service level agreement with instruction clause

When none of the discussed exceptions apply, the user (employer B) is allowed to give certain limited instructions in the framework of a service level agreement to the leased employees (of employer A) but subject to strict conditions. The conditions include the fact that the instructions cannot be of nature that they're in fact considered as a form of execution of employer’s authority.

These instructions should then be confirmed in an instruction clause in (an addendum to) the service level agreement, which must also be shared with the works council of the user (if there is one).

Sanctions

Failure to comply with labour leasing rules can lead to serious consequences:

• The employee might be considered to have an employment contract for indefinite duration with Employer B (and Employer A).
• Both employers may be jointly liable for wages, social security contributions, and benefits.
• Criminal or administrative penalties may apply.