Basic Concepts

Uitzenden – Hiring employees to work at one of the clients

Collective Labour Agreement for temporary workers – contains agreements about the legal
position, remuneration, pension and training of employees

ABU (Algemene Bond Uitzendondernemingen) – The largest trade association for temporary
employment agencies in the Netherlands. Members of the ABU must:
- be registered in the Trade Register
- affiliated with the Labor Standards Foundation (SNA)

WAADI (Law Allocation of Labor Forces Through Intermediaries)

A company should state in the trade register when they lend temporary workers. The law is to reduce
exploitation and provides that:
- temp workers get the same wage as permanent workers
- no consideration is required of the temp worker
- temp workers cannot be posted where there is a strike
- company can only lend workers if they’re registered in the trade register
- agencies cannot impose restrictions
- information is provided provided safety, working conditions, requirements
- copy of ID must be kept for 5 yaers after leaving employment

G-account (blocked account)

Every agency must have a G-account where they only only pay payroll taxes and VAT to the tax
authorities.

The Phase System (ABU CLA)

The worker starts off in phase A, after 52 weeks, moves onto phase B.
At phase B, there are fixed-term contracts with a max of 6 contracts (in 3 years).
After the 6 contracts or 3 years, there is phase C, which is an indefinite contract.
Wet Werk & Zekerheid (WWZ)

This is a law that covers:

- probationary period – there can be none in 6 months or less contracts
- non-compete clause – there can be none
- notice period – 1 month for 6 months or more contracts
- equal pay
- dismissal – 1 month notice period on both sides
- on-call worker – always paid for at least 3 hours (even if worked less)

Wet Arbeidsmarkt In Balans (WAB)

This is a law that covers
- Right to a permanent contract – after 3 temporary contracts or 3 years, employees have a right to
permanent contact
- Transition Compensation – entitled to compensation if: dismissed or contract not renewed
- Payrollers – not allowed to work temp
- Dismissal – there are less strict conditions to for dismissal of perma-employees. Dismissal on
cumulative grounds is introduced
- WW contribution – employeed pay less WW contribution for perma-workers
- On-call workers – defined as no fixed working hours

MUB (Met Uitzend Beding)

Fixed hours
Fixed term contract
No Special leave
10 day notice
unlimited contracts

ZUB (Zonder Uitzend Beding)

fixed hours
fixed term contract
1 month notice period
entitled to special leave
When do we choose each?

On Call: - 6 months or less

- high risks
- uncertainty about no. of hours

MUB: The preference is always on-call

temp2perm when no risks
temp positions more than 6 months
There mustn’t be too many hours in a MUB contract

ZUB: chosen exceptionally when it is the only possibility

Calculations
COST PRICE – The costs page personnel has for the temp worker
PLACEMENT

RESERVATIONS
workers entitled to: 25 vacation days
Holiday allowance: 8.33% of hourly wage
special leave: 0,6% hourly wage

For illness worker must report sick and it is the end of the contract in phase A with agency clause

Pension – there is a pension scheme that provides for the accrual of pension for temporary workers
ages 21 and over.

Types of Leave – Maternity leave (16 weeks), Paternity leave (5 days), Additional birth leave (5 weeks)
TEMPORARY VERSUS PERMANENT