30 April 2018

Court rules: collective bargaining agreement for temporary agency workers – applicable to payrolling companies

The Amsterdam Court ruled that payroll companies are bound by the collective bargaining agreement for temporary agency workers, as soon as it is declared universally applicable. The Court´s ruling is in line with the Supreme Court´s ruling of November 2016 on Care4Care/StiPP, where the Supreme Court qualified payrolling as a form of temporary agency work.

Two payroll companies tried to avoid applying the collective bargaining agreement for temporary agency workers, in order to apply their own employment conditions. Generally, these conditions are less favourable – and therefore less expensive for employers – than those in the collective bargaining agreement. But according to the Court, payrolling is essentially the same as temporary agency work, since payroll companies assign employees to other companies on a permanent basis. This means that the collective bargaining agreement for temporary agency workers also applies in case of payrolling.