Supreme Court ruling and 2026 NBBU-CLA changes bring agency worker compensation in line with direct hires
A September 2024 Dutch Supreme Court ruling has fundamentally transformed how agency workers must be compensated in the Netherlands. Combined with upcoming changes to the NBBU Collective Labour Agreement (CLA) taking effect in 2026, these developments create the most significant shift toward pay parity between agency workers, payroll workers, and direct hires in Dutch employment law.
The changes affect every business using agency workers in the Netherlands. From 2026 forward, hiring an agency worker will be virtually identical in cost and pay structure to hiring a payroll worker or a direct hire in the same role. Organizations need to prepare now with transparent pay data, proactive client communication, and adjusted budget projections.
September 2024 Ruling Redefines Equal Treatment
The Dutch Supreme Court’s decision centers on a case where an agency worker claimed equal treatment regarding bonuses and compensation that direct hires at the client company received. The Court ruled definitively that all elements of remuneration applicable at the user undertaking must be granted to agency workers under article 8 Waadi—rather than just the limited list of employment conditions currently (and until the end of 2025) prescribed under the NBBU-CLA.
This ruling aligns Dutch practice with European Directive 2008/104/EC, which aims to ensure agency workers enjoy equal treatment in basic working and employment conditions as if they were directly employed by the client company. The Court emphasized that “pay” must be interpreted broadly to include all forms of compensation, providing effective protection for workers in precarious employment situations.
For staffing agencies and their clients, this means moving beyond the previous system where only specific, limited employment conditions needed to match. Now, comprehensive compensation parity is required.
2026 NBBU-CLA Changes Explained
Responding to the Supreme Court ruling, the NBBU-CLA has been adapted with new rules taking effect January 1, 2026. The updated agreement introduces an important distinction: agency workers will be entitled to “equivalent” essential employment conditions rather than strictly “equal” treatment.
This equivalency approach allows flexibility in how compensation is structured. You can compensate payment of one essential employment condition with another, as long as the total value of essential terms equals what direct hires receive in the same or similar positions.
Essential vs. Non-Essential Conditions
Essential employment conditions include virtually all compensation elements—salary, bonuses, allowances, and benefits. The key exception is pension, which remains non-essential and must be paid equally without offsetting.
Here’s how the compensation system works:
- Essential conditions can only be offset by other essential conditions
- Non-essential conditions (pension) can be compensated by essential or other non-essential conditions
- You cannot use non-essential benefits to reduce essential conditions
Example: If a direct hire receives a 10% vacation allowance but your agency worker receives 8.33%, you must compensate the remaining percentage elsewhere within essential conditions, such as gross salary.
Transitional Protections
Workers employed before January 1, 2026, who continue at the same client location receive protection if new rules would result in lower compensation. They retain previous vacation allowance levels (8.33%) and vacation days for six months. Similar protections apply for workers on incapacity leave or those who lost agency work before 2026.
What This Means for Your Operations
The transformation brings significant operational changes requiring immediate attention:
Cost Structure Reality
Agency worker costs will closely match direct hire costs for equivalent roles. This impacts the traditional cost advantage of temporary staffing based on reduced benefits or compensation. Budget accordingly and communicate these changes proactively to clients.
Administrative Complexity
You’ll need comprehensive understanding of each client’s full compensation packages—not just base salary. This includes bonuses, allowances, benefits, and any other remuneration elements. The administrative burden increases substantially as you track and match multiple compensation components.
Additional Changes to Consider
- Pension premiums are increasing to 23.4% of pensionable salary (15.9% employer, 7.5% employee).
- The reservation for training, holiday allowance of 8,33%, and sustainable employability of 1.02% will be withdrawn.
- When the Act for More Security Flex Workers passes, Phase 3, under the NBBU-cla, will shorten to two years, though you can still offer up to six temporary contracts within that period. The maximum duration of the interruption period between employment contracts will be extended from 6 to 60 months.
Immediate Action Steps
- Audit current compensation structures against client company packages
- Review and adjust client agreements and cost projections
- Develop systems for transparent pay data collection and tracking
- Prepare clients for the new cost reality of agency workers
How People2.0 Helps Navigate These Changes
The shift to equivalent compensation creates complex compliance challenges that require expert guidance. People2.0’s Netherlands team specializes in managing these regulatory complexities, allowing you to focus on your core business.
Our support includes navigating the greater administrative burden of new regulations, managing transitional provisions for existing placements, handling increased compliance tracking and reporting requirements, and providing expertise on equivalent compensation calculations.
We understand the nuances of Dutch employment law and can help ensure your agency worker arrangements meet the new equivalent treatment standards while optimizing your cost structure within the regulatory framework.
Preparing for the New Reality
These changes represent more than regulatory updates—they signal a fundamental shift toward true pay parity between agency workers and direct hires in the Netherlands. Success requires careful preparation, transparent communication with clients, and expert guidance through the implementation process.
The organizations that adapt proactively will maintain their competitive advantage while ensuring full compliance with the new equal treatment requirements. Those that wait until 2026 may face significant operational disruptions and compliance risks.
Ready to navigate these changes successfully? Contact our specialists to discuss how these equal pay requirements affect your specific business situation and explore comprehensive compliance solutions tailored to your needs.
This article is provided for informational purposes only and does not constitute legal advice. Dutch employment law is complex and subject to change. The information presented reflects our understanding of current regulations but should not be relied upon as a substitute for professional legal counsel. Organizations should consult with qualified Dutch employment law attorneys or compliance specialists before making decisions based on this content. People2.0 makes no representations or warranties regarding the accuracy, completeness, or currency of this information.
