On Hire Labour Agreement Template for the Netherlands
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What is a On Hire Labour Agreement?
The On Hire Labour Agreement is a crucial document used in the Netherlands when establishing temporary employment relationships through staffing agencies. This agreement type is specifically designed to comply with Dutch employment law and regulations governing temporary work arrangements. It is used when a company needs to engage workers through a temporary employment agency, establishing clear terms regarding the assignment, responsibilities, and rights of all parties involved. The document includes detailed provisions about working conditions, remuneration, duration of assignment, and other essential terms as required by Dutch law. It's particularly important as it needs to address the complex three-way relationship between the temporary employment agency (legal employer), the worker, and the hiring company where the work is performed. The agreement ensures compliance with key legislation including the WAADI and the Dutch Civil Code while protecting the interests of all parties involved.
About the On Hire Labour Agreement
An On Hire Labour Agreement is essential when you need to establish temporary employment relationships through staffing agencies in the Netherlands. This specialized contract creates a legally compliant framework for the complex three-way relationship between temporary employment agencies, workers, and hiring companies, ensuring all parties understand their rights and obligations under Dutch law.
When do you need this document?
You need this agreement when your company requires temporary staff through a staffing agency, whether for seasonal peaks, project-based work, or covering employee absences. Manufacturing companies use these agreements during busy production periods, while retail businesses rely on them for holiday staffing. IT companies frequently use temporary workers for specific projects, and healthcare facilities use agency staff to cover shifts. The document is also crucial when transitioning from temporary to permanent employment, as Dutch law requires specific procedures for these conversions.
Key legal considerations
The agreement must clearly define the roles of all three parties: the temporary employment agency as the legal employer, the worker as the employee, and the hiring company as the workplace provider. Critical clauses include the phase system (flex phases) that determines increasing job security over time, equal treatment provisions ensuring temporary workers receive the same conditions as permanent staff, and chain provisions that limit consecutive temporary contracts. You must address working hours compliance with the Arbeidstijdenwet, minimum wage requirements, and holiday entitlements. The agreement should specify liability arrangements, particularly regarding workplace safety and insurance coverage, as responsibilities are shared between the agency and hiring company.
Legal requirements in Netherlands
Dutch law mandates compliance with the Wet Allocatie Arbeidskrachten door Intermediairs (WAADI), which requires temporary employment agencies to hold valid licenses and follow strict worker protection rules. The agreement must align with Dutch Civil Code Book 7, Title 10, covering employment contract fundamentals including notice periods and termination procedures. Phase provisions are legally required, granting workers increasing rights after specific periods: phase A (0-78 weeks), phase B (78-208 weeks), and phase C (after 208 weeks), each with different termination and employment security rules. The Wet Flexibiliteit en Zekerheid governs flexible employment relationships, limiting consecutive temporary contracts and requiring transition to permanent employment after specific conditions are met. Equal treatment legislation ensures temporary workers receive comparable wages and conditions to permanent employees performing similar work at the hiring company.
GOVERNING LAW
Applicable law
This On Hire Labour Agreement is drafted to comply with Netherlands law. Key legislation includes:
Wet Allocatie Arbeidskrachten door Intermediairs (WAADI): Regulates the allocation of workers through intermediaries, including temporary employment agencies, setting rules for agency work and protection of temporary workers
Wet Flexibiliteit en Zekerheid: Legislation governing flexible employment relationships, including provisions on temporary contracts and agency work
Arbeidstijdenwet (Working Hours Act): Regulates working hours, rest periods, and overtime, which applies to temporary workers as well as permanent employees
Wet Minimumloon en Minimumvakantiebijslag (WML): Establishes minimum wage requirements and holiday allowance, applicable to all workers including temporary employees
Arbeidsomstandighedenwet (Working Conditions Act): Sets requirements for workplace safety and health, applying to all workers regardless of contract type
Wet op de Ondernemingsraden (Works Councils Act): Relevant if the hiring company has a works council, as it may have rights regarding temporary employment policies
Wet Arbeid en Zorg (Work and Care Act): Regulates various types of leave, including maternity, parental, and emergency leave, which may apply to temporary workers
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