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Labour MPs to call on minister to take action on payrolling

Monday 10 December 2012

Labour MPs are calling on the government to stop companies employing workers through payroll companies, saying the system is being used to get round formal pay and conditions agreements.

Mariëtte Hamer will call on social affairs minister Lodewijk Asscher to take steps to combat the growth of payrolling during this week’s debate on his ministry’s budget, the Telegraaf reports.

The use of payroll companies is part of the ‘Americanisation’ of the Dutch labour market, the MP is quoted as saying.


Payroll companies are middlemen who process wage administration and premium payments on behalf of companies. In most cases, workers are technically employed by the payroll firm rather than the company they work for.

They are often used by companies who employ people on flexible contracts for a few hours a week, such as the hospitality industry and construction.

Employers consider payroll firms to be an economic necessity and the result of increasing complexity in employment legislation. Unions say payrolling is used to transfer risks from employer to employee and the legal position of workers is a grey area.

According to sector association VPO, some 180,000 workers will be paid via a payroll company this year.

Are you employed via a payrolling company? Share your experiences using the comment form below.

© DutchNews.nl


Readers' Comments

Theres something wrong when your employer exploits every legal loophole they can find so they can avoid giving you a decent wage or take any responsibility for your heatlh care etc

By jason buttle | 10 December 2012 9:58 AM

This also happens in construction as the article points out.
I have a zero hours contract so when I'm not working I have no income. Due to the weather I've been sitting at home from Wed last week.
It may be good for the employer but I have to pay my bills. As I have a contract I'm officialy employed & can't claim uitkeering.

By Donaugh | 10 December 2012 10:37 AM

one step closer to serfdom.

By Dr Ponzi | 10 December 2012 12:07 PM

Gov have to attract more firms and create more jobs. Once there are competition for labour, such things will cease. Alternatively, gov can give tax discount based on the number of staff a company directly employs - the bigger the number of staff, the bigger the discount.

By ufo | 10 December 2012 1:45 PM

I see this happening with eastern europeans. While I am an American legally living in Holland, I am under the same tax rate for employment as any Dutch person. However, Poland, for example, sets up Polish employment companies to contract with Dutch companies, paying Polish workers half the hourly wages and a much lower tax rate. I'd be willing to take a lower pay but am not given the opportunity.

By maria | 10 December 2012 3:24 PM

Finally someone has noticed the legal slavery that's been going on here for ages!!! I have always wondered, how is it legally possible for large companies like NN to hire flex workers from payroll companies so they don't have to give ANYTHING to them, and when they please they can fire them and hire another flex worker who is cheaper.
And it's not with eastern European its with their own dutchies and payroll companies like Randstad! They are all in it together.

By Eddie | 11 December 2012 1:18 PM

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