Labour MPs to call on minister to take action on payrolling
Labour MPs are calling on the government to stop companies employing workers through payroll companies, saying the system is being used to get round formal pay and conditions agreements.
Mariëtte Hamer will call on social affairs minister Lodewijk Asscher to take steps to combat the growth of payrolling during this week’s debate on his ministry’s budget, the Telegraaf reports.
The use of payroll companies is part of the ‘Americanisation’ of the Dutch labour market, the MP is quoted as saying.
Payroll companies are middlemen who process wage administration and premium payments on behalf of companies. In most cases, workers are technically employed by the payroll firm rather than the company they work for.
They are often used by companies who employ people on flexible contracts for a few hours a week, such as the hospitality industry and construction.
Employers consider payroll firms to be an economic necessity and the result of increasing complexity in employment legislation. Unions say payrolling is used to transfer risks from employer to employee and the legal position of workers is a grey area.
According to sector association VPO, some 180,000 workers will be paid via a payroll company this year.