Netherlands introduces new labor leasing regulations under Wtta

The Netherlands is implementing the Wet toelating terbeschikkingstelling van arbeidskrachten (Wtta), a new law regulating the lending of labor. Under this legislation, entities that lend personnel—including employment agencies, payroll companies, and contractors—must obtain authorization from the Dutch Labor Market Authority (NAU).

Key provisions include a requirement for equal or equivalent pay for lent workers compared to the host company's employees. This will be assessed during the authorization process and monitored periodically. Failure to comply may result in the suspension or revocation of licenses. Additionally, the law introduces stricter requirements for time registration, necessitating verifiable records of start and end times, unpaid breaks, and work locations.

From January 1, 2028, companies may only hire lent personnel from authorized providers. The Dutch Labor Inspectorate will enforce these rules, with potential fines reaching €110,000 in 2026. A transition period for lenders to register with the NAU is scheduled between November 1 and December 31, 2026.