Geldermalsen Netherlands
A mandatory licensing system for the flexible employment sector
Labour Supply Licensing Act (Wtta)
The Labour Supply Licensing Act (Wtta) introduces a new mandatory licensing system for staffing agencies, payroll companies, and secondment firms. Under this law, businesses that supply workers must obtain official authorization from the Ministry of Social Affairs and Employment.
On April 15, the House of Representatives approved the law by a large majority. The proposal is now before the Senate, where deliberation may take place as early as this summer.
The Labour Supply Licensing Act (Wtta) is expected to enter into force on January 1, 2027. Minister Eddy van Hijum confirmed this in a letter to the House of Representatives.
How do I prepare in time?
Julisa Fereijra-Phelipa Business Unit Director | Normec VRO
“Those who act now will be fully prepared for the Wtta.”
What is the Wtta?
The Placement of Personnel by Intermediaries Act (Wtta) is a new mandatory system that imposes strict requirements on temporary employment agencies, payroll companies, and secondment agencies. An official license from the Ministry of Social Affairs and Employment will be required to supply workers, with the aim of improving the conditions of labor migrants.
If an agency does not obtain a license when the law takes effect, it risks a fine and will be prohibited from supplying workers. Clients who hire workers from unlicensed agencies may also be fined.
Why the Wtta?
In 2021, a commission led by Emile Roemer published a report on the working conditions of labor migrants in the Netherlands. The report was critical of the role of some employment agencies and the general treatment of migrant workers. It concluded that there were serious issues in the temporary staffing sector, including inhumane conditions such as poor housing, unsafe work environments, and exploitation. Tackling rogue employment agencies was seen as a crucial step toward improving the situation of labor migrants in the Netherlands.
Timeline
November 1, 2026 – Start date for transitional arrangement registration
Lenders who wish to make use of the transitional arrangement must register with the Ministry of Social Affairs and Employment. This is possible from November 1, 2026, until January 1, 2027. This allows you to continue lending staff while the license application is being processed.
January 1, 2027 – Official entry into force and start date for license applications
The Labour Supply Licensing Act (Wtta) officially enters into force. From this date, lenders can start applying for a license.
No later than July 1, 2027 – Deadline for license applications
By this date, all lenders must have submitted their license application to the Ministry. Timely action is essential to remain compliant.
January 1, 2028 – Start date of enforcement
The Netherlands Labour Authority will begin enforcement. Lenders without a license risk a fine. This fine also applies to hirers who work with unregistered employment agencies.
Who is the Wtta for?
The mandatory licensing applies to all companies — both inside and outside the Netherlands — that fall under the Allocation of Labor by Intermediaries Act (Waadi). This means that in addition to temporary employment agencies, subcontractors, payroll providers, and secondment agencies must also comply with the Wtta. Clients are responsible for checking whether their labor suppliers are listed in the public licensing register. In some cases, you may be exempt from the licensing requirement. These exceptions are explained in our Wtta brochure.
Wtta Licensing Requirements
The licensing system includes four main requirements:
The regulatory framework
Demonstrable compliance with the framework
A Certificate of Conduct (VOG RP)
A financial security deposit
You can read more about the requirements, exemptions, and how to prepare in our brochure "Ready for the Wtta."
News
Latest developments regarding the Wtta
19 Mar 2025
Recap of House of Representatives Debate on WTTA
10 Feb 2025
Sitting back after the WTTA delay? Not a smart move!
6 Nov 2024
New WTTA standards framework
13 May 2024
Commencement date of the Admission to the Provision of Labor Force Act (Wtta) postponed by one year
30 Oct 2024
Postponement of the introduction of the Admission to the Provision of Workers Act (Wtta)
FAQ
Frequently asked questions about the WTTA
For staffing agencies or companies involved in the provision of labour, the SNA quality mark will no longer apply. These organizations will fall under the mandatory WTTA, which introduces a new set of standards. This new framework is based on the existing SNA standard but includes several additional requirements in areas such as:
Employment contract requirements
Wage ratio regulations
Housing for migrant workers
Time registration
For companies whose main activity is contracting work (rather than labour provision), the current SNA quality mark will remain in effect.
The WTTA applies to all companies, both within and outside the Netherlands, that fall under the Dutch Allocation of Labour by Intermediaries Act (Waadi). This means that not only staffing agencies, but also subcontractors, payroll companies, and secondment agencies must comply with this law. It is the responsibility of client companies (hirers) to verify whether the labour provider is registered in the public licensing register.
You are exempt from the mandatory licensing requirement in the following cases:
Companies that supply staff within their own corporate group (intra-group labour provision);
Companies that lend staff on a collegial basis as a form of mutual aid, where only wage costs are charged;
Companies for which the turnover from supplied labour is less than 10% of total revenue and does not exceed 5 million euros within a 12-month period may apply for an exemption from the Minister.
Yes, there is a transitional arrangement. If you apply for admission no later than July 1, 2026, and hold a valid SNA certificate as of June 30, 2026, you will qualify for the transitional scheme, which allows for a smooth entry into the licensing system.
The transitional arrangement consists of three pathways.
Factoring can be a helpful solution for financing the deposit required under the Labour Provision Licensing Act (Wtta).
What is factoring? With factoring, you sell outstanding invoices to a factoring company. In return, you receive a portion of the invoice value upfront (usually 70–90%) without taking out a loan.
Benefits for the deposit:
Quick liquidity: Factoring unlocks working capital that can be used to pay the Wtta deposit.
No additional debt: Since factoring isn’t a loan, it doesn’t affect your balance sheet.
Flexible and fast: Useful when the deposit is needed on short notice.
Important to note: Factoring involves costs the factoring company takes a percentage of the invoice value. Make sure to choose a reliable partner and consider consulting a financial advisor to understand what factoring means for your specific situation.