Netherlands: Temporary employment agencies - KPMG Global
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Netherlands: Classification of temporary employment agencies in “occupational sector” ends

Netherlands: Temporary employment agencies

Due to an amendment of the law, as of 25 May 2017, it is no longer possible for temporary employment agencies to be classified in the sector fund in which more than 50% of their workforce is available for contract. This “occupational sector” payroll, however, does still apply to temporary employment agencies that were classified in an occupational sector before 25 May 2017 or that had applied for such a classification. Temporary employment agencies and comparable employers that do not fall under this standard will now be classified in the relatively expensive “temporary employment” sector.


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In the Netherlands, every employer pays contributions to a sector fund. These funds were set up to finance unemployment benefits. Employers are classified in a sector fund on the basis of their business activities. The sector contributions payable in the various sectors vary widely. 

The contribution for the “temporary employment” sector is one of the highest. According to settled case law, classification in the temporary employment sector is determined on the basis of the type of contract. This must involve an employer that makes an employee available to a third party to work under the management and supervision of that third party. Until recently, “occupational sector” relief was available for the temporary employment sector—this allowed employers to be classified in the (often much less expensive) sector in which more than 50% of their workforce was available for contract. This ended as of 25 May 2017.


Read a June 2017 report prepared by the KPMG member firm in the Netherlands

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