Netherlands introduces new labor leasing regulations and compliance checklists

The Netherlands is implementing new labor regulations through the Wtta (Wet ter voorkoming van arbeidsdelingen en ontduiking van de arbeidstijdenwet), which imposes stricter requirements on companies that lease personnel to other businesses. The law aims to prevent abuses in the labor market.

A key factor in determining whether the Wtta applies is whether a worker operates under the direct leadership and supervision of the client. If the client controls how the work is performed, the arrangement may be classified as labor leasing, potentially requiring the company to apply for authorization. This can affect various business structures, including ZZP (self-employed professionals) and directors of their own private limited companies (DGA), depending on the practical nature of their working agreements.

To support compliance, the Dutch Labor Inspection (Arbeidsinspectie) has released a renewed checklist for employers hiring external staff. Developed in collaboration with the Tax Administration, UWV, and SVB, the checklist includes fifteen questions designed to help employers verify that hired workers are legally permitted to work in the Netherlands and that labor conditions are being met. The initiative emphasizes that employers share responsibility with leasing agencies for ensuring fair, healthy, and safe working conditions.