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Netherlands – Temporary workers get pay parity from day one

31 March 2015

As of 30 March 2015; temporary workers in the Netherlands, whose rates of pay were previously determined by collective agreements, will get the same rates of pay as equivalent permanent workers; according to ABU, the Dutch Federation of Employment Agencies.

The deal is a result of an agreement between ABU and several Dutch trade unions; including the country’s largest union FNV, the Christian Trade Union CNV, employment union De Unie, and LBV, the National Employee Interest Association.

The wages of temporary workers are tightly controlled by provisions in the Collective Agreement for Temporary Workers. Article 8 of the Placement of Personnel by Intermediaries Act (Wet Allocatie Arbeidkrachten Door Intermediars, WAADI) stipulates that temporary workers are entitled to the same wage and other allowances as employees of the user business in equal or equivalent positions in the company to which the workers are supplied; unless an applicable collective agreement provides other arrangements.

The ABU agreement provides nine job grades corresponding to the sub-categories of job roles ranked according to the increasing level of work complexity, higher degree of skills, and qualifications required; the salaries rise accordingly. Grade 1 corresponds to basic and repetitive tasks for which little experience is required, while Grade 9 is for manager roles.

As a result of the agreement, temporary workers will receive pay parity from day one, instead of after their 26th week of continuous work. They will also be eligible to receive the same working conditions as regular employees from their first day of work.

The agreement applies to the entire staffing industry as it has also been declared generally binding by the Minister of Social Affairs and Employment.

Jürrien Koops, Director of ABU, commented: “The social partners have taken a new step in creating a good balance between flexibility and security.”