Normec VRO

Factoring can indeed offer a solution for financing the security deposit under the Labor Supply Act (WTTA). Here is how it works:

What is factoring? Factoring is a form of financing whereby a company sells its outstanding invoices to a factoring company (factor). In exchange, the company immediately receives a percentage of the invoice value, often between 70% and 90%, from the factor. The factor then assumes the risk of non-payment and takes care of collecting the invoices.

How can factoring help with the security deposit? The WTTA requires temporary employment agencies and other employment intermediaries to pay a security deposit as collateral for their financial reliability. However, it can be challenging for some companies to come up with this security deposit in one go. This is where factoring can help:

1. Freeing up working capital: By converting invoices into immediately available liquidity through factoring, a company can quickly access cash. This liquidity can then be used to pay the security deposit without the company having to draw on its reserves or other sources of financing.

2. Avoiding additional debt: Because factoring is not a traditional loan, it does not increase the company's debt burden. This can be beneficial for companies that want to keep their balance sheet healthy.

3. Flexibility and speed: Factoring can often be set up quickly, which is useful if the deposit needs to be available at short notice.

Important to consider: Factoring is not without costs, however. Factoring companies typically charge a percentage of the invoice value as a fee. It is important to weigh these costs against the benefits of immediate liquidity. In addition, it is essential to choose a reliable factoring partner, as this can have a significant impact on cash flow and customer relationships.

If you are considering factoring to finance the deposit, it may be wise to discuss this with a financial advisor or factoring company to understand what this means for your specific situation.

No, under the WTTA, the SNF quality mark is also mandatory even if no deductions are made or if deductions exceed the WML. In short, if a company provides or arranges housing for migrant workers, SNF registration is required.

Yes, under the WTTA framework, which was submitted for public consultation in March 2024, it is required that all workers employed or previously employed by the company have a signed and documented written employment contract that has been provided to the worker.

If an inspection reveals that employment contracts have not been signed, this may result in non-conformity. If a non-conformity is not resolved, it could affect your authorization.

The Wtta applies to all companies, both within and outside the Netherlands, that fall under the Labour Allocation by Intermediaries Act (Waadi). This means that, in addition to temporary employment agencies, temporary staffing agencies, payroll companies, and secondment agencies must also comply with this law. It is the responsibility of the hiring company to check whether the temporary employment agency is registered in the public admission register.

In the following cases, you are exempt from the mandatory admission:

• Companies that lend personnel within their own group (intra-group secondment)

• Companies that supply collegial personnel as a form of assistance, whereby only wage costs are passed on

• Companies whose turnover from supplied personnel is less than 10% of their total turnover and does not exceed €5 million in 12 months can apply for an exemption from the minister

No, not necessarily. However, there must be activities that can be assessed based on the PayChecked in Transport standard. If you do not have employees covered by the Collective Labor Agreement for Professional Goods Transport (CAO Beroepsgoederenvervoer), please contact us first.