Senators have finally approved a new law that will require staffing agencies to hold a government licence in an effort to improve protection for workers, particularly from abroad, and ensure fair competition between employment agencies.

The law, which has been delayed several times, will come into effect on 1 January 2027 and from that date, only licenced agencies will be allowed to supply staff. Companies that continue to operate without a permit, or hire workers from unlicensed agencies, will face fines once enforcement begins in 2028.

Social affairs minister Mariëlle Paul said the law represents “a major step forward” in protecting vulnerable workers. According to some estimates, there are currently 14,000 staffing agencies operating in the Netherlands.

To qualify for a licence, companies will need to submit a certificate of good conduct (VOG), pay a €100,000 security deposit and show that they comply with existing labour laws, including the legal minimum wage.

A new body will be set up to manage the licencing system.

The licencing system was one of the key recommendations made in 2020 by the Roemer Commission, which investigated the widespread exploitation of foreign workers in low skilled jobs such as slaughterhouses, distribution centres and in agriculture.

However another key recommendation – banning employers from charging workers for lodgings – has been dropped by Paul, even though it was set to become law from next year.

“I don’t want to suggest that nothing has been done,” commission leader Emile Roemer told the Volkskrant earlier this month after that news broke.

“But you cannot blame me for concluding that after five years, things are moving very slowly. And we are talking about major injustices which are happening every day.”