Permanent employee vs. agency worker – What will really change in the Netherlands in 2026?

Permanent employee and temporary worker - The same factory, the same production line, maybe the same warehouse… the same noise and the same smell of morning coffee from the vending machine.

The difference usually began only in the paperwork. In the place people rarely looked at – until something stopped adding up.

For years, an agency contract in the Netherlands functioned as a quiet shortcut. Not always worse, but almost always cheaper. Noticeably for the company. And for the worker – over time – more and more so. It was a system that worked… until someone decided it was time to say enough.

From January 1, 2026, the Netherlands decided to dismantle this mechanism. With a shift in emphasis that at first glance looks harmless, but in practice forces everyone to start calculating everything again.

The new rules do not say that an agency worker must have exactly the same conditions. They say the worker must receive comparable value in employment conditions. And that sentence – although it sounds calm and technical – cuts off entire branches on which the model of cheap temporary labor has been hanging for years.

Agency work in the Netherlands in 2026 – new rules and comparable employment conditions

Today, the value of work is made up of much more than just the hourly rate.
It is the time you give away. The money you receive for working while others sleep. The vacation days that technically exist but are often too few – or written in small print because in practice there is no real moment to use them. The bonuses and benefits that look harmless in a contract but make a significant difference in the final payslip.

And that is exactly why this topic triggers so many emotions. Some see fairness in it. Others see a threat. And some try to dismiss it altogether. The problem is that emotions usually stop where numbers begin.

So let’s get to the point. Until now, comparisons focused mainly on the hourly wage. Everything else was treated as “extras.” From 2026, the entire package starts to matter.

Imagine a warehouse operating in shifts. Two people perform exactly the same tasks. One is employed directly by the company. The other works through an employment agency in Phase A. The difference is not the work itself – it is the structure of the contract.

A permanent employee starts a night shift knowing that every hour worked between 22:00 and 6:00 includes a 40 percent night allowance. This is not a discretionary bonus. It is a fixed part of the employment package. With an hourly rate of €17, it means €23.80 per hour during the night.

A temporary worker performing the same job has often operated under a different structure. A base rate of €15, with a 25 percent night allowance. During the same hours the pay becomes €18.75 per hour. On an eight-hour shift the difference exceeds €40. Over fifteen night shifts in a month, that becomes more than €600 in pay difference.

And differences like these will no longer be neutral from 2026. They will have to be balanced.

Vacation and pay for temporary workers in the Netherlands from 2026 – the principle of comparable value

Until now, such differences were accepted. They were explained by the form of employment, Phase A status, flexibility, or simply a “different package.” From January 1, 2026, those explanations will lose their meaning. The principle of comparable value, derived from ABU-CAO and NBBU-CAO, means that a temporary worker performing the same job as a permanent employee must receive a package of comparable value – regardless of whether they are in Phase A, B, or C. If the difference does not appear in the night allowance, it must be reflected in the base rate or another form of financial compensation.

The same mechanism applies to vacation, an area that for years was even easier to overlook. A permanent employee may receive 25 days of vacation per year. A temporary worker, for comparison, may receive 20. Five days does not sound dramatic until it is translated into numbers.

A full-time job in the Netherlands is about 2,080 hours per year. One working day equals 8 hours. Five days therefore equal 40 hours. At a rate of €16 per hour, that amounts to €640 per year.

This is not a symbolic issue. It is a concrete value that must be taken into account from 2026. If the number of vacation days is lower, the difference must be reflected in another element of compensation. Otherwise, the employment package is no longer comparable, and responsibility falls on both the employment agency and the client company.

Will agency work become the same as a permanent job?

No. And it is worth saying this clearly. The changes that have been introduced will not turn agency work into permanent employment in a different wrapper. The structure of pay may remain different. The names of allowances may vary. The way benefits are calculated may also differ. But in the end, someone will have to sit down with a calculator and check one thing: whether two people doing the same job receive a comparable value from it. And that is the real change.

This does not mean that the fundamental differences disappear.

Permanent employment – especially in the form of an indefinite contract – provides a level of stability that is hard to argue with. Dismissing a permanent employee in the Netherlands is not simple. It requires solid grounds, a lengthy procedure, and real violations of duties. That is a level of security that temporary work, by definition, does not provide.

At the same time, agency work has its own characteristics and real advantages. Flexibility works both ways. Unpaid leave – although not formally a benefit – is often much easier to arrange than in a permanent job, especially for people who regularly travel back to their home country. For foreign workers this is one of the biggest advantages of working through an agency. Changing positions, workplaces, or even industries is also faster and easier. For many people, this is not a drawback but a conscious choice.

Greater transparency and control over employment agencies

Until now, the system was convenient. The client company assumed that employment conditions were “handled by the agency.” The agency, in turn, often relied on general information – sometimes incomplete, sometimes copied from a previous client. The system worked because few questions were asked. And when they were, they concerned individual elements, never the whole picture.

From 2026, this approach ends, because the principle of comparable value forces clarity.

If a temporary worker must receive a package comparable to that of a permanent employee, someone must know exactly what that permanent package looks like. Not “more or less.” Not “according to common practice.” Specific details. The number of vacation days. The level of allowances. The way working hours are calculated. Things that previously existed in many companies only as habits must now be defined and documented.

This is the moment when many organizations will begin to discover their own gaps. In many cases, permanent employment conditions are not contained in a single, coherent document. Some rules are in the contract, others in internal regulations, others in an email from years ago, and some exist simply because “that’s how it has always been.” As long as no one had to compare them, it was not a problem. From 2026, it automatically becomes one.

Employment agencies will no longer be able to rely on a general job description. Every temporary worker assigned to a specific company will require reference to the actual conditions that apply there. Not in the industry. Not at another client. In that one organization, on that one production floor, on that one shift.

And that shifts the entire conversation. From the question “Are the conditions compliant with the CAO?” to a much more difficult one: “Are they comparable to what this company gives its own permanent employees?”

How Phases A, B, and C work in the Netherlands

Phase A

This is the initial stage of employment through an agency.

The contract is flexible.

During the first period, the so-called “uitzendbeding” clause applies. This means the contract can automatically end when the assignment with the client company finishes.

Protection against dismissal is limited.

This phase lasts a specific number of working weeks, depending on the applicable CAO (collective labor agreement).

Phase A provides a high level of flexibility for both the agency and the client company.

Phase B

Phase B begins after Phase A ends.

Contracts are concluded for a fixed period of time.

The automatic termination clause linked to the end of an assignment no longer applies.

Employee protection is stronger than in Phase A.

The number of possible fixed-term contracts is limited.

This phase acts as a transition between full flexibility and more stable employment.

Phase C

This is the most stable form of employment in the temporary work system.

The contract is concluded for an indefinite period with the agency.

Standard termination rules apply.

Employment protection becomes similar to regular permanent employment.

Phase C represents a long-term relationship with the agency, although the worker may still be assigned to different companies.

Who can help in practice in case of a dispute with an agency or employer?

There are several institutions that oversee compliance with rules in the temporary work sector and can provide support:

SNCU (Stichting Naleving CAO voor Uitzendkrachten) – an organization that monitors whether employment agencies comply with the provisions of ABU-CAO and NBBU-CAO. It accepts reports of irregularities, including anonymous complaints.

Nederlandse Arbeidsinspectie – the Dutch Labour Inspectorate, responsible for investigating serious violations of labor law, including exploitation, illegal employment, or underpayment.

Juridisch Loket – provides free initial legal advice for employees and helps assess the situation while indicating possible next steps.

Trade unions (e.g., FNV, CNV) – if a worker is a member, unions can handle the case on their behalf and represent them in disputes.

Pension i świadczenia przyszłościowe

Jest jeszcze jeden obszar, który przez lata pozostawał na marginesie rozmów o pracy tymczasowej – emerytura. Dla wielu osób, szczególnie młodszych pracowników, to temat odległy. Problem polega na tym, że skutki decyzji podejmowanych dziś widać dopiero po latach.

Praca przez agencję funkcjonowała długo w odrębnym systemie emerytalnym. Składki bywały niższe lub naliczane później, a prawa budowały się wolniej. Dla firm był to dodatkowy element obniżający całkowity koszt zatrudnienia, choć niewidoczny w miesięcznym wynagrodzeniu.

Zasada równowartości obejmuje jednak nie tylko bieżące wynagrodzenie i dodatki, ale również świadczenia przyszłościowe. Oznacza to, że pracownik tymczasowy nie powinien systemowo budować mniejszych praw emerytalnych wyłącznie z powodu formy zatrudnienia. Szczegóły nadal zależą od CAO i sektora, ale kierunek jest wyraźny.

W praktyce może to oznaczać wyższe składki lub wcześniejsze objęcie systemem emerytalnym. To koszt, którego nie da się „zrównoważyć” dodatkiem czy inną konstrukcją umowy. Składka jest odprowadzana albo nie – i wpływa bezpośrednio na przyszłe świadczenia.

Dla pracodawców to element trudniejszy do przeliczenia w krótkim horyzoncie. Dla pracowników – moment, w którym porównanie z etatem zaczyna dotyczyć nie tylko tego, ile trafia na konto dziś, ale także tego, co zostaje na przyszłość.

Is this the end of “cheaper agency workers”?

This leads to the final question now circulating online like a catchy headline: does this mean the end of cheaper agency workers? The answer is: it depends on what we mean by “cheaper.” In a way, yes. And in a way, no.

If the lower cost of temporary work for years meant paying less for the same job, offering weaker allowances, fewer vacation days, and weaker long-term protection – then yes, that model is coming to an end. Not because it has been formally banned, but because it no longer fits within the new logic of comparable employment conditions.

A temporary worker is no longer, by definition, the “cheaper version” of a permanent employee. If they perform the same job, the cost of that work starts to look similar. Where differences remain, they must be justified with numbers – not with explanations.

At the same time, this is not the end of temporary work itself. Agencies are not disappearing. Phases A, B, and C still exist. Flexibility still has value, especially in projects, seasonal work, and temporary replacements. What changes is the meaning of that flexibility – it is no longer profitable simply because someone is employed “differently.”

That is why the slogan about the end of cheap agency workers is both true and misleading. What is ending is the cheapness based on inequality. Temporary work itself is not ending as a labor market tool. What ends is the convenient illusion that a difference in contracts can quietly become a difference in the value of someone’s work.

For many companies, this becomes a moment of decision. Not whether to use agencies, but why and for what purpose. And that question is far more difficult than a simple calculation of costs.

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