Uitzendbeding
Temporary employment clause
A temporary agency clause is a provision in a temporary agency contract pursuant to which the employment contract terminates by operation of law when the hirer ends the assignment.
The temporary employment clause forms an integral part of the flexible employment relationship in the staffing industry and is governed by the Allocation of Workers by Intermediaries Act (Waadi) and the Dutch Civil Code. It enables the temporary employment agency to terminate the employment contract without notice or the consent of the UWV as soon as the client indicates that the worker is no longer required.
This clause is particularly relevant in phases A and B of the temporary employment regime, where it supports the high degree of flexibility between supply and demand. Without the temporary employment clause, the agency would be required to follow a standard dismissal procedure upon each termination of an assignment, which would undermine the essence of temporary agency work.
In practice, the clause is routinely included in the model agreements of temporary employment agencies and is the subject of discussion when determining whether a legally valid provision of workers exists or whether the arrangement constitutes a regular employment contract.
“Because the employment contract contained a temporary employment clause, the employment relationship automatically terminated when the client ended the secondment.”
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