BACHELOR THESIS FINANCE AND ORGANIZATION ON PAYROLLING
Implications for payrolling of the new Work and Security Act Bastiaan C. Molenaar
University of Amsterdam Faculty of Economics and Business
Name: Bastiaan Molenaar
Student number: 10441476
Specialization: Finance and Organization Institution: University of Amsterdam Supervisor: Sabina Albrecht
Statement of Originality
This document is written by Student Bastiaan C. Molenaar who declares to take full responsibility for the contents of this document.
I declare that the text and the work presented in this document is original and that no sources other than those mentioned in the text and its references have been used in creating it.
The Faculty of Economics and Business is responsible solely for the supervision of completion of the work, not for the contents.
Table of contents
Introduction ... 3
Chapter 1: Payrolling ... 4
1.1 The concept of payrolling ... 4
1.2 Motives for payrolling ... 4
1.3 Collective labour agreements payrolling ... 5
1.4 Dutch labour law; focused on payrolling ... 6
1.5 Partial conclusion ... 6
Chapter 2: Position of the employee ... 6
2.1 Dismissal position of the employee ... 7
2.2 Vision of the Foundation of Labour ... 8
Chapter 3: The Work and Security Act ... 9
3.1 The genesis of the Work and Security Act ... 9
3.2 Changes for the payroll industry ... 10
Chapter 4: The research ... 12
4.1 Implications of the Work and Security Act ... 12
4.2 Hypotheses ... 13 4.3 Research Method ... 15 Conclusions ... 17 Appendix ... 18 Appendix 1 ... 19 Translation list ... 23 Reference list ... 24 Literature list ... 24 Jurisprudence list ... 25 Other sources ... 25
Introduction
During one of my first part-time jobs, I was curious why there was a different name than my company’s name on the payroll check. It turned out that my employer was using payroll-services for his employees. This was the first time I came into contact with the phenomenon of payrolling. Since then, I wanted to know a bit more about it, but I never really delved into it. When looking for a subject for my thesis a couple of years later, I quickly turned towards payrolling.
The concept of payrolling does not have any legal basis at the moment. Though, things are about to change within the payroll-branch with the introduction of a new law, the Work and Security Act. The event of an introduction of a new law gives rise to many questions. Because of the importance of the implications of the new Work and Security Act, I want to use this event as a subject for my thesis.
For the thesis I consider it necessary to create a framework or reference on the law-like information to get an understanding of payrolling in the jurisdiction. The key elements of payrolling concerning the legal aspects will be briefly discussed. The objective is to give the reader an overview of the complexity of payrolling in the legislation. Towards the end of the thesis, an economic application will be given concerning the adaption of payroll companies on the event of the introduction of a new law. More specific, I want to investigate how Dutch payroll companies will prepare themselves for potential higher costs caused by the new Work and Security Act.
Setup
General information on payrolling will be given in the first part of chapter one. This contains an explanation of the concept of payrolling and the motives to use payrolling. How to appoint payrolling according to the legislation will be discussed thereafter. More detailed information on how to appoint payrolling can also be found in appendix 1.
The position of the employee will be discussed in chapter two. The current dismissal procedure of a payroll employee is special and will be analysed in more depth. Some
viewpoints of the Foundation of Labour will be given on this and the pros and cons will be discussed of the current dismissal procedure.
The new Work and Security Act will be examined in the third chapter. First will the origin of the Work and Security Act be discussed and what changes it will bring. What the implications of the changes are will be discussed in the chapter thereafter.
The fourth chapter will start with clarifying the implications of the new law. The research will be introduced thereafter. The research will start with analysing the possibilities payroll companies have to prepare themselves. The chapter continus by examining the options and to add expectations to each option. Then the research method and the results follow.
The last chapter consists of a brief summary and a conclusion. A translation list is added to this thesis. The thesis is based on Dutch legislation with Dutch vocabulary. Because there are multiple possibilities to translate something, there can be some ambiguity with the translation. To reduce possible turmoil of the translation, it has been tried to be consistent with the use of words and terms. The more important words can then be found in the translation list.
Chapter 1: Payrolling 1.1 The concept of payrolling
Payrolling is a service that was introduced in the Netherlands about 23 years ago. Since then, the usage of payroll services has grown tremendously.1
The role of the formal employer will be fulfilled by a third party instead of the executive of the employee’s company with payrolling.2 With payrolling there is a triangular relationship with three parties. The employer that the employee has to face on the workplace is the actual employer. The actual employer has decisive influence over the employee and the actual
employer recruits the employee in general. Though, the payroll employer formally employs the employee. The agreement between the payroll employer and the actual employer is called the payroll agreement.
A definition of payrolling that is frequently used in the literature is the description of the payroll agreement of the Association of Payroll Companies (VPO). The VPO is an industry association for payroll companies. Their definition is used as a starting point in this thesis and is as follows:
The employment agreement where an employee is made available by the payroll company, within the framework of the conduct of a profession or business to a third party, in order to perform work issued by the third party to the payroll company under the supervision and direction of the third party.3
Complex situations can exist with payrolling. The three parties in the triangular relationship are: the payroll company, the hirer and the employee. This denomination of the three parties will be used consistently throughout the thesis. The hirer is, as what is described above, the actual employer. The word ‘hirer’ comes from the fact that the hirer hires the employee from the payroll company.
1.2 Motives for payrolling
The Economic Institute for Medium and Small enterprises (hereinafter: EIM) have in
commission by the Association of Payroll Companies investigated whatever the motives are for employers to use payroll services.4 The motives of the employers will be briefly explained below.
The EIM-report showed that the main motives for using payroll services arise from the demand of flexibility. This demand consists of increasing the flexibility of the workforce, greater opportunities for probation and the chain of fixed-term contracts and keeping the
recruitment process in own hands while not wanting to offer a contract.5 The second important reason is that the legal obligations that come with the employer practice are transferred from
1 Stichting van de Arbeid (2013, April 4th). De visie van de Stichting van de Arbeid op payrolling, mede in het licht van de gevolgen voor werknemers als het gaat om ontslag, p. 2.
2 Ministerie van Sociale Zaken en Werkgelegenheid (2015, Januari). Informatie voor werkgevers; Einde van mijn arbeidsovereenkomst als payrollwerknemer, p. 1.
3 Vereniging Payroll Ondernemingen (VPO) (2015, April). VPO-Arbeidsvoorwaardenregeling voor
Werknemers van Payroll Ondernemingen. Article 1.7.
4 Onderzoek EIM, Payrollservices in Nederland; Bekendheid, markt en potentie, November 2010, p. 5. 5 Onderzoek EIM, Payrollservices in Nederland; Bekendheid, markt en potentie, November 2010, p. 19.
the hirer to the payroll company.6 This often means from the perspective of the hirer simplified and improved payroll and personnel processes. Furthermore, a better understanding of labour costs, sourcing expertise and better automation and IT-processes relate to this second reason. Finally there is a third important reason that is mentioned in the EIM-report and that is the hedging of financial risks. Risks are costs associated with the tide-over allowances,
resignation costs and sick pay for example.7 The risk is spread more with payroll companies, making it more manageable.
1.3 Collective labour agreements payrolling
Payrolling fell under the collective labour agreements for temporary workers before September 2006. This was known as the ABU collective agreement of the General Federation of
Temporary Employment Agencies (ABU). The ABU had a major role in the creation of the first collective labour agreement for payrolling. The first collective agreement for the payroll industry was applied on the 1st of September 2006 with a maturity date until the 1st of January 2008.
The objective of the collective labour agreement was to create general terms of employment to align the different company terms to foreclose competition on employment terms.8 Two more collective labour agreements followed after the first, but the third was denounced by the labour unions late 2011. Since the 1st of January 2012, the payroll industry does not have its own collective labour agreement anymore. The labour unions showed with the unilateral withdrawal to have no faith in the creation of a succeeding collective labour
agreement for payrolling. The labour unions argued that payroll employees find themselves often in worse employment conditions than regular permanent employees and they see the emerging payroll industry as a threat that will undermine the position of labour unions as representing advocate.9
The disappearance of the collective labour agreement for payrolling means for employees who work on the basis of a payroll agreement that they are either covered by a general binding ABU collective labour agreement for temporary employees or that they are covered by a different collective labour agreement that is declared applicable.10 Members of the Association of Payroll Companies are obliged to use the ABU collective labour agreement, even whilst it is not declared as generally binding. The Association of Payroll Companies has added additional terms to the ABU collective labour agreement that should be implemented fully by all their members.11
There are also payroll companies that have their own collective labour agreement that is declared applicable besides the more generalized collective labour agreements.12 These payroll companies have often set up several subsidiaries, each with their own collective labour
6 Onderzoek EIM, Payrollservices in Nederland; Bekendheid, markt en potentie, November 2010, p. 19. 7 Onderzoek EIM, Payrollservices in Nederland; Bekendheid, markt en potentie, November 2010, p. 19. 8 Bos, A.M., & de Graaf, E.V. (2006). Payrolling; het outsourcen van werkgeverschap. P. 2.
9 Zwemmer, J.P.H. (2014). Uitzenden, payrolling, schijnzelfstandigen en de Wet Werk en
Zekerheid, p. 3.
10 Geugjes, H.C. (2013). Van draaideur naar harmonicadeur, p. 3.
11 Vereniging Payroll Ondernemingen (VPO) (2015, April). VPO-Arbeidsvoorwaardenregeling voor Werknemers van Payroll Ondernemingen, p. 4.
agreement. The payroll companies try to better serve the interest of employees working in different sectors by doing so.
1.4 Dutch labour law; focused on payrolling
The concept of payrolling is relatively new and the indication of payrolling in the labour law remains unclear. The fact that this concept is not enshrined in the law makes the situation of the employee and the employer(s) in many cases somewhat ambiguous. In an attempt to appoint payrolling it can be checked whether payrolling should be regarded as something else that is described in the law.
The core of the Dutch labour law can be found in Title 10 of Book 7 of the Civil Code (BW). Relevant articles for the thesis are article 7:610 BW and article 7:690 BW.
Article 7:610 BW can be regarded as the gateway to the settlement of a labour agreement as specified in Title 10 Book 7 of the Civil Code.13 The definition of the ‘employment agreement’ is described in this article.
The temporary employment agreement in article 7:690 BW is referred to as a contract between the employment agency and the temporary worker. Variants that are familiar to the temporary employment agreement and which have a triangular relation are the management agreement, secondment and payrolling.
A detailed assessment whether payrolling can be regarded as one of the agreements stated in the articles above can be found in appendix 1. To keep the focus on the research how payroll companies will prepare themselves on the potential higher costs, a brief conclusion will be sufficient for the framework and understanding.
1.5 Partial conclusion
Payrolling consists out of a triangular relationship with three parties that is qualified by some as a temporary employment agreement as in article 7:690 BW. This is not justified in my opinion, because the allocation function, which is mentioned as a requirement in the explanatory
memorandum, does not apply for the payroll industry.
I think it can best be argumented that there is an employment contract between the hirer and the employee. The elements of article 7:610 BW paragraph 1 are present in this
relationship and it is also in conjunction with the intentions of the parties. It can best be concluded that there is an employment contract between the hirer and the employee therefore. There doesn’t exist a formal contract between them though, so this statement cannot be generalized.
Chapter 2: Position of the employee
This chapter will discuss the position of the payroll employee, because it is not clear what positions the parties find themselves in. When discussing the position of the employee, the position of the payroll company and the hirer should become clear as well. The payroll employee will be compared with the ‘regular’ employee. The resignation of the payroll employee is special and this will be discussed in more detail in this chapter. The dismissal
13 Zwemmer, J.P.H. (2014). Uitzenden, payrolling, schijnzelfstandigen en de Wet Werk en
procedures will change with the introduction of the Work and Security Act. This chapter is relevant to explain the changes later on. The changes itself will be discussed in Chapter 3.
If it is clear between which parties a labour agreement exists, it is also clear what collective agreement applies and also which dismissal procedure to follow. It will be
immediately clear what rights and duties to apply. As previously notified, payroll companies may use different collective labour agreements and thus there are various possibilities.
A major consequence for the payroll employee that is present anyway arises at the time of dismissal. The payroll employee has a relatively bad position at the time of dismissal and the public media has notified this.14
2.1 Dismissal position of the employee
The Dutch dismissal system currently is a dual system; the employer has two ways to legally dismiss the employee. This can be done through the subdistrict court judge or through the Employee Insurance Agency (UWV). The procedure through the subdistrict court can be said to be more expensive, because this procedure often results in a redundancy allowance for the employee. The UWV on the other hand never results in the payment of allowances and the UWV is therefore a more advantageous route for the employer. The employee can object with the dismissal through the UWV for a different outcome.
The employer needs to provide documents if the termination of the employment contract is based on economic reasons. The employer needs to give motives for the dismissal. The employer also has to take the ‘afspiegelingsbeginsel’15 into account and he needs to show there are no other resettlement opportunities for the affected employee.16 The UWV has included a separate chapter in its policies regarding payrolling. The UWV has, also in
consultation with the Ministry of Social Affairs and Employment, created special procedures for the dismissal decision of contractual relations concerning the payroll structure.17 The fact that the formal legal employer enters an employment contract with the employee, whilst this employer has no effective control, makes the relation unique.18 The special procedures can be found in chapter 16 of the Redundancy Policy of the UWV.
The payroll company should request the dismissal at the UWV in a payroll structure according to the UWV. Justified economic motives should be the present in case of a payroll structure as well. The mere fact that the actual employer terminates the hire agreement of the employee with the payroll company is the economic reason for the UWV.19 The payroll company only has to show the UWV that the commission has ended.20
14 Stoker, E. (2011, April 19th). De vogelvrije payrollwerknemer. De Volkskrant.
15 The ‘afspiegelingsbeginsel’ is a binding selection method to be applied by every employer for every kind of business economic dismissal.
16 The complete UWV dismissal procedure can be found at www.werk.nl.
17 Policies UWV Chapter 16 ‘Payrolling’. UWV Beleidsregels Ontslagtaak UWV; Hoofdstuk 16. 18 Stichting van de Arbeid (2013, April 4th). De visie van de Stichting van de Arbeid op payrolling,
mede in het licht van de gevolgen voor werknemers als het gaat om ontslag, p. 15. 19 Zwemmer, J.P.H. (2013). Payrolling: wie is de werkgever en welke verplichtingen hebben het
payrollbedrijf en de opdrachtgever jegens werknemer?, p. 5.
20 Zwemmer, J.P.H. (2013). Payrolling: wie is de werkgever en welke verplichtingen hebben het
The payroll employee has barely any dismissal protection this way and the hirer can dismiss his employee with ease. It makes little sense for the payroll employee to object through the manifestly unreasonable procedure, because the verdict will never be in favour of the payroll employee according to Zwemmer.21 The payroll employee basically loses all his dismissal protection rights the moment he enters into an employment agreement with the payroll company. It does not seem right that the position of the payroll employee is that bad compared to other employees in the labour market. There is a dichotomy between employees because of these radical differences in the legal positions.
2.2 Vision of the Foundation of Labour
The previously mentioned dichotomy did not remain unnoticed in the media. Questions have been asked in the Dutch parliament to minister Kamp of Social Affairs and Employment after troubling media. In minister Kamp’s response he requested council from the Labour
Foundation on the concept of payrolling, especially on the dismissal position and the
consequences of the payroll employee.22 The council of the Labour Foundation finally came in May 2012. The vieuwpoints of both employers and employees is given on the phenomenon of payrolling in this council and also the applicability of the dismissal procedure of payroll employees is being reviewed.
Employers find the flexibility aspect provided by payrolling to be important for a well functioning labour market. High risks are often a hurdle for employers to take on their own employees. With risk is meant the costs associated with dysfunctioning, furlough, disability and illness. Payrolling is the outcome for employers to keep those risks manageable and to let the staff size fluctuate with the dynamic economy.23 Employers can be short about the possible revision of the dismissal procedure: there is no need for revision of the respective policy rules.
The employees believe on the other hand that payrolling is only being used to
circumvent (good) employer practices according to the council. Payrolling generally leads to profound uncertainty about the legal position of the employee and to unjustifiable
discrimination between the payroll and the ‘regular’ employees.24 The unclear and unequal position comes forth especially during dismissal. The current termination of the payroll
agreement and the subsequent termination of the employment contract is a procedure that fully relieves both employers from their duties.
Together the employers and the employees recomment at the end of the council that the special dismissal procedure of the UWV for payrolling companies should be abandoned. The view to abandon or change the dismissal procedure of payrolling is frequently heard. This recommendation is passed through in the new Work and Security Act. Chapter 16 of the special procedure of the UWV on payrolling will therefore expire.
Later on in the Social Agreement of April 11 2013 is also the following proposed:
21 Zwemmer, J.P.H. (2012). Ontslag payrollwerknemer nooit kennelijk onredelijk?, p. 4.
22 Stichting van de Arbeid (2012, May 11th). De visie van de Stichting van de Arbeid op payrolling, mede in het licht van de gevolgen voor werknemers als het gaat om ontslag, p. 1.
23 Stichting van de Arbeid (2012, May 11th). De visie van de Stichting van de Arbeid op payrolling, mede in het licht van de gevolgen voor werknemers als het gaat om ontslag, p. 18.
24 Stichting van de Arbeid (2012, May 11th). De visie van de Stichting van de Arbeid op payrolling, mede in het licht van de gevolgen voor werknemers als het gaat om ontslag, p. 22.
A written agreement should be obliged in payrolling situations, whereby the agreement should contain the essentials of the contract. Failure to provide a written contract is to result into an employemt agreement of the employee with the hirer, rather than the payroll company. This should be stated in the civil code.25
The Social Agreement also planned to prevent the improper use of triangular relationships like payrolling. The special dismissal procedure for payrolling will expire and more transparency is expected for the employee.26 This then became the basis of the new Work and Security Act.
Chapter 3: The Work and Security Act 3.1 The genesis of the Work and Security Act
The 2013 Social Agreement was an agreement between the social partners and the parliament. This agreement provides a mix of measures to stimulate economic recovery in the short term and to adapt the labour market to the needs of current time. It was presented by the Minister of Social Affairs. The Social Agreement set out a series of agreements that reflected the vision for the labour market. An important principle in the agreement is to enhance the flexibility of the labour market in a justified way.27 Payrolling is also seen as a new form of flexibility. The Social Agreement points out that the outsourcing of the employer practice, as occurs with payrolling, increasingly leads to questions that require urgent solutions.28 It needs to be prevented that the employer solely uses constructions like payrolling for evasion or avoidance of employment agreements. The policy points in the Social Agreement eventually resulted in the introduction of the new Work and Security Act.29
Employers and employees showed they were willing to invest in labour capital in individual companies and in the labour market. Clear public preconditions by law are required to achieve this and to address the problems arising with payrolling.30 The Work and Security Act realizes these conditions by making adjustments in the flex law, the dismissal law and the unemployment act (WW). The Work and Security Act will be phasially introduced from the 1st of January 2015. The first changes relate to fixed-term labour agreements, temporary labour agreements and call agreements. On the 1st of July 2015 and on 1st of January 2016 new phases will be implemented. These changes will affect the renewal of fixed-term labour agreements, the dismissal procedures and the WW. The purpose of the Work and Security Act is to adapt the labour law to the changing labour relations in society. The aim is to recreate the balance between flexibility and security on the labour market. The dichotomy between employees with
25 Quotation from Zwemmer, J.P.H. (2014). Uitzenden, payrolling, schijnzelfstandigen en de Wet
Werk en Zekerheid, p. 4
26 Asscher, L.F. (2013, November 28th). Nader rapport inzake wetsvoorstel Wet werk en zekerheid, p. 6.
27 Ministerie van Sociale Zaken en Werkgelegenheid (2015, Januari). Informatie voor werkgevers;
Einde van mijn arbeidsovereenkomst als payrollwerknemer, p. 1.
28 Stichting van de Arbeid (2013, April 4th). Perspectief voor een sociaal én ondernemend land: uit de crisis, met goed werk, op weg naar 2020, p. 26 and further.
29 Asscher, L.F. (2013, November 13th). Wetsvoorstel Wet werk en zekerheid inclusief Memorie van Toelichting, p. 2.
30 Asscher, L.F. (2013, November 13th). Wetsvoorstel Wet werk en zekerheid inclusief Memorie van Toelichting, p. 47 and further.
fixed-term contracts and employees with temporary contracts should be reduced. The premise of the contemporary labour market needs to be ‘labour security’ instead of ‘job security’.31 3.2 Changes for the payroll industry
The legislative proposal of the Work and Security act states that the parliament and social partners want to prevent improper use of triangular relationships like payrolling.32 The proposal indicates that the triangular relationships will be made transparent in all cases, so there will be no misunderstanding on the position of the employee. The dismissal procedure for payrolling will be adjusted to equalize the protection of the payroll employee with the ‘regular’
employee.33 A separate section in the proposal is devoted to the payroll structure within the flexible contracts. Prolonged use of flexible relations will be made less attractive by changes in the law, thereby improving the position of employees working on the basis of flexible contracts in general. The Work and Security Act is introduced in different phases. Some of the changes of the law that have a connection to payrolling are briefly summarized below:
‘Notice period’ Applies 1st of January 2015:
The notice period applies for the employer for temporary employment agreements of six months or longer. It means the employer is obligated to inform the employee by letter one month in advance on the termination of the employment agreement.
‘Probation stipulation’ Applies 1st of January 2015:
The probation regulations change in the sense that the probation stipulation is no longer allowed on employment agreements of six months or less.
‘No work, no pay’ Applies 1st of January 2015:
Currently the maximum period to issue a contract on the principle of ‘no work, no pay’ is up to six months. There can be deviated from this time period on the basis of the collective labour agreement. The Work and Security Act restricts this deviation. All such agreements can take up to a maximum of six months henceforth.
‘Competition clause’ Applies 1st of January 2015:
The competition clause is only possible for the temporary employment agreement if there is a well-justified argumentation and if there is a heavy reling company interest. In other cases it is not allowed to have it in the agreement anymore.
‘Temporary
employment clause’
Applies 1st of January 2015:
The temporary employment clause is a powerfull and clear way to prevent the obligation to pay wages when the employer is no longer working. The employer and employee can both terminate the collaboration at any time. The time period on this clause will not change and remain 26 weeks. There is no deviation from this possible anymore on the basis of the collective labour agreements.
31 Asscher, L.F. (2013, November 28th). Nader rapport inzake wetsvoorstel Wet werk en zekerheid, p. 1. 32 Asscher, L.F. (2013, November 13th). Wetsvoorstel Wet werk en zekerheid inclusief Memorie van Toelichting, p. 50.
33 Asscher, L.F. ((2013, November 13th). Wetsvoorstel Wet werk en zekerheid inclusief Memorie van Toelichting, p. 50.
‘Chain of agreements’ Applies 1st of July 2015:
It is only possible to connect three temporary employment agreements with a maximum of 24 months (from 36 months). The chain of agreements will be broken only after a gap of 6 months (from 3 months). If there is a gap, it can start over again.
‘Dismissal procedure’ Applies 1st of July 2015:
Which dismissal procedure to follow is set in advance. Economic related dismissals and long-term disability dismissals will go through the UWV. Dismissals based on other reasons will go through the subdistrict court. ‘Transition allowance’ See the second paragraph of section 4.1
‘Unemployment Act’ Applies 1st of January 2016:
All labour will suit after 6 months (from 12 months).
The unemployed can keep 30% of their gross wage without taxation.
The maximum time to enjoy unemployment benefits will be reduced from 38 to 24 months.
The first ten years of employment gives right to one month of unemployment benefits per employed year. Thereafter gives right to half a month per employed year.
*The changes above can be found on the Rijksoverheid’s website.34
The changes related to the flexible employment contracts should lead to a faster transition of the employee with a flexible contract to a fixed contract.35 The Advisory Department of the State Council (hereinafter: the Advisory Department) gave council on the Work and Security Act on Novermber 5th 2013.36 The Advisory Department questioned whether the changes will truly lead to an improved position of flexible employees. The Department argues that the position of the flexible employees can also deteriorate, because of the following reasons: The Department first points out that employers are able to choose not to refill the flexible work places, which would implicate a negative result on employability. Secondly, employers could divert to structures in which no contract is required, like payrolling or self-employed workers. Thirdly, as a result of a more stringent chain of flexible contracts, employers can shift into shorter chains, which would have a negative impact on investments in sustainable employability.37
The parliament endorsed the Department’s findings. With regard to the point that employers will divert to structures such as payrolling or self-employed workers was the reason of the proposal to take measures to reduce the improper use of the payroll structures.38
34 - Rijksoverheid (n.d.). Aanpassingen Wet werk en zekerheid. http://www.rijksoverheid.nl/
onderwerpen/wet-werk-en-zekerheid/aanpassingen-wet-werk-en-zekerheid
- Ministerie van Sociale Zaken en Werkgelegenheid (2015, Januari). Informatie voor werkgevers;
Werkgevers en oproepcontracten, pp. 1-3.
35 Asscher, L.F. (2013, November 13th). Wetsvoorstel Wet werk en zekerheid inclusief Memorie van Toelichting, p. 48.
36 Raad van State (2013, November 15th). Advies Raad van State inzake de Wet werk en zekerheid en nader rapport, Kamerstukken II 2013/14, 33 818, nr. 4.
37 Raad van State (2013, November 15th). Advies Raad van State inzake de Wet werk en zekerheid en nader rapport, Kamerstukken II 2013/14, 33 818, nr. 4, pp. 47-48.
38 Raad van State (2013, November 15th). Advies Raad van State inzake de Wet werk en zekerheid en nader rapport, Kamerstukken II 2013/14, 33 818, nr. 4, p. 48.
The improper use of payrolling is also reduced by changing the dismissal procedures according to the legislative proposal. The current dismissal procedures for payrolling will be adjusted, whereby the starting point is that the dismissal protection of the payroll employee will be equivalent to the employees working directly with the hiring employer.39 This means that Chapter 16 of the payrolling dismissal procedures of the UWV will be renounced. The Council for the Judiciary questions what will remain of payrolling.40 The circumvention of the dismissal procedure is often a major reason of the hirer to use payrolling. The Council for the Judiciary suggests that the ‘benefit’ of using payrolling will disappear with the introduction of the Work and Security Act.
Chapter 4: The research
An important change in the new Work and Security Act is that payroll employees will have equal dismissal protection in comparison with other workers.41 In the absence of a clear statement in the current law, it can turn out that, after the introduction of the new law, the payroll company is the one to bear the costs that come with the dismissal of a payroll employee.
The research of the thesis is on how payroll companies will prepare themselves for the upcoming change in the law. These changes can be broadly interpreted and the research will therefore focus on how payroll companies are preparing themselves for the potential higher costs for the payroll company that come with the implementation of the Work and Security Act. To find out how, it needs to be set out what opportunities the payroll companies have to absorb the higher costs.
This chapter begins by outlining the implications and expectations arising from the implementation of the Work and Security Act. Then the hypotheses of the options the payroll companies have will be discussed for different situations. The research and how the research on this was conducted follow thereafter. The results are discussed in the end.
4.1 Implications of the Work and Security Act
The dismissal procedure will be easier, faster, fairer and less costly for employers.42 From the first of July 2015 there will be one standard dismissal procedure. Economic related dismissals and long-term disability dismissals will go through the UWV. Dismissals based on other reasons will go through the subdistrict court. The employer can no longer decide which procedure to follow for the dismissal of the employee. Besided that it is becomes increasingly more important for employers to keep track of a good personnel file, because judges will look more thoroughly to the dismissal file. The dismissal procedure through court will be based on the basis of strict criteria. There will be less room to deviate from the transition allowance after
39 Asscher, L.F. (2013, November 13th). Wetsvoorstel Wet werk en zekerheid inclusief Memorie van Toelichting, p. 50.
40 Raad voor de Rechtspraak (2013, May 27th). Advies wetsvoorstel tot wijziging ontslagrecht en WW,
p. 9.
41 Ministerie van Sociale Zaken en Werkgelegenheid (2015, Januari). Informatie voor werknemers; Einde van mijn arbeidsovereenkomst als payrollwerknemer, p. 1.
42 Rijksoverheid (n.d.). Aanpassingen Wet werk en zekerheid. http://www.rijksoverheid.nl/
the implementation of the new law, which makes the judge more easily decide not to terminate the employment agreement if the file structure is not in order.
All employees have the right, under certain conditions, on a transition allowance from the 1st of July 2015.43 The transition allowance is an allowance paid by the employer to the employee when the employee is being dismissed.44 The conditions are that the employee at least must have been in service of the employer for two years and that the agreement is terminated on the initiative of the employer. The transition allowance is on the one hand intended as a compensation for the dismissal. On the other hand it is intended to facilitate the transition of the employee to find another job.
The transition allowance only depends on the length of service and not on age (apart from a temporary arrangement until 2020) in the new system.45 The amount of transition allowance is calculated over the amount of period periods of employment, taking into account the statutory build up and maximum amount.46 During the first ten years of an employment agreement, the employee is entitled to 1/6th of the monthly wage per whole period of 6 months. For the period after the first ten years, the montly allowance is 1/4th per whole period of 6 months. The maximum transition allowance is gross €75.000.
The transition allowance for some employees can be a lot more than the €75.000 in the current system. This could theoretically lead to the situation where the employer waits to dismiss the employee until after the first of July 2015. The costs of dismissal will be
substantially lower and could this lead to a wave of dismissals? Theoretically this is possible, but no relevant literature is found on this.
The payroll company can turn out to be the one to pay the transition allowance, because there is no clear jurisdiction on the payrolling structure. It can have far-reaching consequences for the payroll company, such as bankruptcy, if the potential higher costs are anticipated wrong. It is therefore important that the payroll companies assess and prepare themselves well for the potential threat.
4.2 Hypotheses
It must be clear how the payroll companies earn their income before the hypotheses can be discussed. The exact amounts dependents of course on the agreements made with the payroll companies and the hirers.
The payroll company receives a percentage of the gross wage of the employee in most cases. The hight of the percentage depends mostly on what risks are covered by the payroll company and depends on the kind of labour the employee has to perform. The risks include for example the costs associated with tide-over allowances, dismissal costs and disease costs.
There are payroll companies that also apply a factor of the gross income of the employee. The hirer pays the factor times the gross wage of the employer to the payroll company. The factor is greater than one and is basically the same as receiving a percentage of the gross income.
43 Rijksoverheid (n.d.). Aanpassingen Wet werk en zekerheid. http://www.rijksoverheid.nl/
onderwerpen/wet-werk-en-zekerheid/aanpassingen-wet-werk-en-zekerheid
44 Ministerie van Sociale Zaken en Werkgelegenheid (2015, May). De transitievergoeding, p. 1. 45 Ministerie van Sociale Zaken en Werkgelegenheid (2015, May). De transitievergoeding, p. 2. 46 Ministerie van Sociale Zaken en Werkgelegenheid (2015, May). De transitievergoeding, p. 4.
Finally, payroll companies can obtain income by offering administration services. They can charge a fee for offering overviews. For example a fixed amount per issued paycheck. The potential danger is that the payroll company needs to pay the transition allowance. This can be a significant amount. The payroll companies have a number of options to prepare
themselves for this, to absorb the potential higher costs. The options are listed below: 1. The payroll company increases its margin.
2. The payroll company does not change its margin, but the payroll company will calculate individual cases through to the hirer.
The payroll company can set up a new contract with the hirer, where they agree upon the fact that the hirer is to pay the transition allowance if it occurs. The payroll company can be the one to pay the transition allowance if no new contract is being set up. Besides setting up a new contract, the payroll company can also set up new general terms and conditions that indicate the same. The hirer(s) still has to agree on the new terms.
3. A combination of option 1 and 2.
4. The payroll company does not change its margin nor does it set up new contracts. 5. The payroll company ends the relationship with the hirer within two years.
The obligation to pay a transition allowance is avoided if the employment with the employee is ended within two years.
Option 1 is actually the preventive raise of income of the payroll company to offset the
potential higher costs. I expect this option to be applicable for payroll companies who expect to pay relatively few transition allowances. These payroll companies will not be able to cover the costs of multiple transition allowances otherwise. Of course their margin could be increased tremendously, but in reality it could reduce their competitive position if they increase their margin by too much.
Option 2 actually sends back a part of the risks associated with the employer practice to the hirer. The costs of a transition allowance would be paid by the hirer anyway compared to an employer who is directly employed at the hirer. As described previously, this reduces the advantage of employers to use payroll services.47 The ease of getting rid of employees is reduced with the implementation of the new law and the function of the payroll company now approaches solely the provision of the payroll. Of course other risks are still spread over a larger piece, making payrolling to still have some advantages. Therefore I expect this option will be applicable for payroll companies that have clients who enjoy the payroll provision of the payroll company. I think this option will be the most frequent choosen, because this option offsets the change that comes with the implementation of the new jurisdiction nearly
completely.
Option 3 is a combination of options 1 and 2. Some costs can remain for the payroll company depending on how the new contract is set up, whereby the costs are calculated through. These costs can then be absorbed by the higher margin. I think this option will be less frequent compared to option 2, because increasing the margin will often mean a less
47 Raad voor de Rechtspraak (2013, May 27th). Advies wetsvoorstel tot wijziging ontslagrecht en WW,
competitive position.
Option 4 is actually the option that shows that the payroll company does not expect any changes. To my opinion this would be unwise to expect and I think it can be argued that this option will apply to payroll companies who are not well prepared or who are not aware of the coming changes. I expect this option not to occur very often, because payroll companies will not say they are not well prepared and they won’t say they weren’t attentive enough.
Option 5 basically means the employee will always be a temporary employee, because the employee will be replaced every 2 years. If there is a period of 6 months of no employment agreement with the employee in between, the employee can be rehirered to start over though. This negative side effect is also mentioned in in the report of the Council of the Judiciary.48 I expect this option to apply for companies who use payroll services who have a high labour turnover.
4.3 Research Method
The research consists of a survey that was sent to Dutch companies that offer payroll services. Respondents are asked to choose one of the options listed above. The question to which respondents must answer is:
‘After the announcement of the Work and Security Act, the payroll organisation will in general change its pricing model according to option .’
The answer of the respondents consists of the choosen option with a possible explanation. The replies on the options are useful information to me, because I can determine how the payroll market will react to the potential increased costs. The response itself does not contain company specific information and therefore it is more likely to get a response. If their margin before and after would be asked, the payroll companies would basically give up their business model by answering. This, of course, is information that companies are not willing to share.
The responses and all participants will remain anonymous. The answers given by individual respondents will not be made available. The information will be used confidentially.
By letting companies choose out of a set of options, it is more likely that they will participate. The amount of time to participate is reduced as much as possible if they are to reply only their option. If it takes only a small amount of time, it will increase the likelihood to participate.
The result of the thesis is also useful information for every payroll company. To create an incentive to respond, the payroll companies are told that they will only be able to see the results if they participate.
I do not have any influence whether the participants will reply honestly or not. I can only hope for the best and emphasize that an honest response of every participant will give the most valuable result.
The survey was sended to the payroll companies multiple times to remind the non-responding payroll companies to reply. If no response was given after the e-mails, personal
48 Raad voor de Rechtspraak (2013, May 27th). Advies wetsvoorstel tot wijziging ontslagrecht en WW,
contact by phone was made in an attempt to increase the amount of respondents. The companies were given one-month to respond.
4.4 Results
The survey was send out to 99 Dutch companies that offer payroll services. 36 of those companies did not respond at all to the e-mails or were not willing to give an answer after contact by phone. 15 of the companies did respond and mentioned they did not want to participate to the research. The results are therefore based on 48 companies.
The results result of the 48 companies is summarized in the circle diagram below:
The first thing to notice from the results is that option 2 is indeed the most frequent choosen option. This is in line with the hypotheses. Apparently most companies will try to offset the changes by calculating through the potential higher costs.
The other options, options 1, 3 and 4, are fairly evenly divided. The possible reduced competitiveness after a increase in the margin, as what happens with option 1 and a bit with option 3, might not be so relevant after all. I think a good relationship with the clients of the payroll companies is maybe valued more than an increase in costs from the perspective of the hirer. Payrolling perhaps relies not that much on competitive prices, but more on the provided services. Most of the payroll companies mention on their website that they deem a good customer relationship to be very important.
The fact that 15 companies did not wish to participate and the other 36 non responding companies could also induce a completely different result. Some companies gave as a reason not to participate that with providing an option they would give up too company specific information. Therefore they did not wish to participate. Others said they didn’t evaluated to
change anything and they didn’t know if they would before the implementation of the law. It can be argued that this last group should be considered as companies that do not adjust anything (yet) and that they should be marked as companies who choose option 4. The
companies who comitted not to have thought about it, were only a few and would therefore not induce big differences.
The Advisory Department of the State Council mentioned three reasons that stated that the position of flexible employees could also deteriorate with the introduction of the new law.49
One reason was that, as a result of a more stringent chain of flexible contracts, employers can shift into shorter chains, which would have a negative impact on investments in sustainable employability. The parliament did not agree with the Department on this reason. In this
research of how payroll companies will adapt, there is also no strong support for the reason the Department gave. Option 5 is not frequently choosen and therefore there is no strong support found in this research that employers will not invest in sustainable employability.
Conclusions
The concept of payrolling consists of a triangular relationship that is not enshrined in the current jurisdiction. Payrolling also cannot be regarded as a temporary employment agreement, nor as a ‘regular’ employment agreement. The question how to adress payrolling in the
jurisdiction becomes less relevant with the next phase of the Work and Security Act in July 2015. This law states that payroll employees will have equal rights compared to employees who are directly employed at the hirer. The focus of this law is therefore more on the outcome of payrolling than on how to adress payrolling and to follow (legal) procedures thereafter.
Another big change of this law is that every employer who has an employment agreement of two years or longer has right to a transition allowance. Because employees will now have the same rights as ‘regular’ employees, it can turn out that the payroll company is the one to pay for this allowance. This law in fact implies potential higher costs for payroll
companies. The research of this thesis focuses on how the payroll companies will prepare themselves for these potential increased costs.
The payroll companies have five options to prepare themselves for the potenetial higher costs. The first option is to increase their margin. The second option is to calculate through the increased cost to the hirer if they occur. The third option is a combination of option one and two. The fourth option is not to make any changes. The fifth option is to end the employment of the employee within two years and therefore avoid to ever pay the transition allowance.
Which options payroll companiese will choose is investigated with a survey of 99 Dutch companies that offer payroll services. These companies have been asked which option applies to them. 63 companies responded and 48 companies were willing to share their choice. The result of the survey is summarized in graph 1. It turned out that the major part of the companies will calculate individual cases through.
Besides the fact that most payroll companies try to partly offset the new changes of the law, by adjusting according to option 2, it also becomes less easy to dismiss employees. From the perspective of the employer it becomes therefore less attractive to make use of payrolling.
49 Raad van State (2013, November 15th). Advies Raad van State inzake de Wet werk en zekerheid en nader rapport, Kamerstukken II 2013/14, 33 818, nr. 4, pp. 47-48.
The Council of the Judiciary even questions if there is any future for payrolling. Overall I think the future of the payrolling industry will deteriorate with the introduction of the new Work and Security Act.
Appendix Appendix 1
Payrolling as a temporary employment contract as in art. 7:690 BW?
Payrolling is a form of labour contract that cannot be directly traced back to a legal basis. Many payroll companies apply the ABU collective labour agreements that is mentioned in paragraph 1.4. This could mean that a payroll agreement can be qualified as a temporary employment contract. Although the VPO poses for this there is an on-going discussion in the literature about this qualification.50
Payrolling was regarded as a ‘special form’ of the temporary employment agreement of article 7:690 BW in the previously meant collective labour agreements for payrolling of 2009-2011.51 Article 7:690 BW is the legal article that refers to the temporary employment
agreement. The payroll agreement is also interpreted as a special form of temporary
employment agreement like in article 7:690 BW by the VPO employment regulations.52 The legal article is as follows:
A secondment contract is a contract of employment whereby, within the framework of the conduct of a profession or business of the employer, the employee is placed by the employer at the disposal of a third party in order to perform work under the supervision and direction of the latter by virtue of a contract for services granted by the latter to the employer.53
Payrolling seems to meet the requirements of the temporary employment agreement based on a grammatical reading of article 7:690 BW. The legislative history suggests though that a
grammatical reading is too limited to judge and that the legislative history should be taken into consideration. The explanatory memorandum of a law gives insight into the circumstances of the creation of the law and how legal offices and officials understood and interpreted some determinants of the law at its establishment. The explanatory memorandum is therefore an important source for the interpretation of a law whereby the intentions of the legislature per article needs to be involved in the assessment of a case.54
In the explanatory memorandum of the Flexibility and Security Act is the notion pointed out that article 7:690 only applies if the employer, who performs in the context of the pursuit of his profession or business, makes his employee available to a third party, whereby it is of vital importance that the employer should carry out an allocative function to the labour market. Allocative should be interpreted as bringing together the demand for and the supply of temporary workers.55 The requirement of the allocation function does not come forth in the
50 Zwemmer, J.P.H. (2014). Uitzenden, payrolling, schijnzelfstandigen en de Wet Werk en
Zekerheid, p. 5
51 Vereniging Payroll Ondernemingen (VPO) (2009). cao voor Medewerkers van Payroll Ondernemingen 2009-2010. Art. 1.7.
52 Vereniging Payroll Ondernemingen (VPO) (2015). VPO-Arbeidsvoorwaardenregeling voor Werknemers van Payroll Ondernemingen. Article 8.1.
53 Quotation of article 7:690 of the Civil Code of the Netherlands. Translated by Curry-Summer, I.,
Thomas, R. &Warendorf, H..
54 Fleuren, J.W.A. (2009). Wetshistorische interpretatie en ‘de bedoeling van de wetgever’, pp. 162-163. 55 Memorie van Toelichting, 25 263, nr. 3 Kamerstukken 1996/97, p.8.
formulation of article 7:690 BW, but the allocation function is linked to the article in the legislative proposal.
The explanatory memorandum of the Flexibility and Security Act mentioned that the legislature also intended to regard all triangular employment relationships as a temporary employment agreement if it satisfies the provisions of article 7:690 BW.56 This together gives room for a broad interpretation of article 7:690 BW, making it possible that payrolling is to be regarded as a temporary employment agreement.
In the literature there is the discussion whether the concept of payrolling should be considered as a temporary employment contract. J.P.H. Zwemmer argues that the allocation function is not a characteristic of the payroll industry and that payrolling therefore cannot be qualified as a temporary employment agreement.57 He mentions the fact that payrolling does not cover the intentions of temporary posting of jobs in the sense of ‘peak and illness’ as it applies in the temporary employment sector. The hirer uses payrolling mainly for the outsourcing of the employer practices instead of filling vacancies.
Y.A.E. van Houte shares the opposite notion. She argues that support for the notion that payrolling is a temporary employment agreement as in article 7:690 BW can be found in the legislative history. She calls on the intention that a broad scope was intended with this article.58 The requirement of the allocation function is solely meant for article 7:691 BW according to van Houte. She states that the allocation function is therefore no requirement for the application of article 7:690 BW.59
There is no clear opinion in the literature on the applicability of 7:690 BW with regards to the concept of payrolling. There is also no clear jurisdiction on it.
Payrolling as a ‘regular’ employment agreement as in art. 7:610 BW?
If the concept of payrolling does not appear to fall within the definition of the temporary employment agreement as in article 7:690 BW, then the question remains how the structure of payrolling should be determined. Could an employment agreement exist between:
1. The payroll company and the employee? 2. The hirer and the employee?
3. The payroll company and the hirer?
To examine if there is an employment agreement, the definition should be known: ‘’A contract of employment is a contract whereby one party – the employee – undertakes to perform work in the service of the other party – the employer – for remuneration during a given period.’’60
Three elements can be found within this law:
1. The labour element; labour performed by the employee.
2. The Authority element; authority of the employer over the employee. 3. The Reward element; wages for the employee for his work.
56 Memorie van Toelichting, 25 263, nr. 3 Kamerstukken 1996/97, p.10.
57 Zwemmer, J.P.H. (2009). Waarom de payrollonderneming geen (uitzend)werkgever is, p. 3. 58 Van Houte, Y.A.E. (2011). Uitzending en payrolling: overeenkomst en verschil, p. 3. 59 Zwemmer, J.P.H. (2012). Pluraliteit van werkgeverschap, Deventer: Kluwer, p. 138.
60 Quotation of article 7:610 of the Civil Code of the Netherlands. Translated by Curry-Summer, I.,
The elements stated above should exist between parties to determine whether there is an employment agreement within the concept of payrolling. Plurality of employers can be ruled out in advance, because article 7:690 lid 1 BW mentions a two-party agreement. There cannot be two employers who each fulfil an element therefore.
First it will be checked if there is an employment agreement between the payroll company and the employee. This agreement fulfils the first element partly, because the
employee permits personally, by signing a contract, to perform work for the payroll company.61 The second element can cause complications, because it can be argued that the employee does not perform the labour in service of the payroll company. The point is the authority an
employer should have over his employee and the payroll company often has no authority to give instructions with respect to the employee. The payroll company is not involved with the control of the employee, but with the (wage) administration of the employees in practice. Therefore there will be no compliance of the third element, so there is no existence of an employment agreement between the payroll company and the employee. Even for the third element it can be argued if this element is being met. The wage is in fact coming from the hirer and the payment is done via the payroll company. It therefore can be argued that the payroll company does not solely cover up the third element.
Secondly there will be checked if there is an employment agreement between the hirer and the employee. The employee undertakes to perform work by agreeing on a contract with the payroll company. The hirer is the actual employer of the employee.62 Zwemmer suggests that the testing of the elements should be based on the actual relationships.63 The first element will be met therefore. The hirer has authority over the employee. The hirer gives the
instructions and determines the rules the employee has to obey. The second element will be met as well. The assessment of the third element is more difficult. The borrower undertakes to pay wages to the payroll company. The payroll company pays out the wages to the employee. The hirer basically pays the payroll company for the labour of the employee. The basis for meeting on this element lies in article 6:30 BW. This article states that a person other than the debtor can fulfil a commitment. This is in fact what the payroll company does. Therefore the third element will be met. Overall it will result in compliance with all elements and thus therefore there is an employment agreement between the hirer and the employee.
Finally it can be checked if there is an employment agreement between the payroll company and the hirer. This is not the case, because the relation between the two parties will fall under a different kind of contract, the obligatory agreement.64
Recent jurisprudence shows that judges ‘look through’ the concept of payrolling more often with the assessment of an employment contract.65 In the Groen/Schroevers judgement it is stated that the intentions of the parties should also be taken into consideration when assessing
61 According to J.P.H. Zwemmer, one should not look at the written agreement, but to the actual
agreement. See next paragraph.
62 Ministerie van Sociale Zaken en Werkgelegenheid (2015, Januari). Informatie voor
werkgevers; Einde van mijn arbeidsovereenkomst als payrollwerknemer, p. 1.
63 Zwemmer, J.P.H. (2012). Pluraliteit van werkgeverschap, Deventer: Kluwer, p. 139. 64 See article 6:213 of the Civil Code.
whether there is an employment contract.66 In the advisory of the Labour Foundation (Stichting van de Arbeid) of 2012 can be found that judges should court individual cases on the basis of how the employee is best protected despite the chosen construction.67 These findings indicate that even in the jurisdiction there is no clear line how to indicate the concept of payrolling.
66 HR November 14th 1997, JAR 1997/263 (Groen/Schroevers).
67 Stichting van de Arbeid (2012). De visie van de Stichting van de Arbeid op payrolling, mede in het licht van de gevolgen voor werknemers als het gaat om ontslag, p.8.
Translation list
English Dutch
Actual employer
Advisory department of the State Council Agreement
Chain agreements Civil Code (BW)
Collective labour agreement Competition clause
Council of the Judiciary Dismissal law
Dismissal position Dismissal procedure Employee
Employee Insurance Agency (UWV) Employer Employer practice Employment agreement Explanatory memorandum Flex law Foundation of Labour
General terms and conditions Hirer Labour law Legislative proposal Manifestly unreasonable No work, no pay Notice period Obligatory agreements Parliament Payroll agreement Probation stipulation Secondment Social Agreement Subdistrict court judge
Temporary employment agency Temporary employment agreement Temporary employment clause Tide-over allowance
Unemployment act Work and Security Act
Feitelijke Werkgever
Afdeling Advies van de Raad van State Overeenkomst
Ketenregeling
Burgerlijk Wetboek (BW) Collective arbeidsovereenkomst Concurrentiebeding
Raad van de Rechtspraak Ontslagrecht Ontslagpositie Ontslagregels Werknemer Uitvoeringsinstituut Werknemers Verzekeringen (UWV) Werkgever Werkgeverschap Arbeidsovereenkomst Memorie van Toelichting Flexrecht
Stichting van Arbeid Algemene voorwaarden Inlener Arbeidsrecht Wetsvoorstel Kennelijk onredelijk Nul-uren principe Aanzegverplichting Obligatoire overeenkomst Kabinet Payroll overeenkomst Proeftijdbeding Detachering Sociaal Akkoord Kantonrechter Uitzendbureau Uitzendovereenkomst Uitzendbeding Wachtgeld Werkloosheidswet Wet werk en zekerheid
Reference list Literature list
Asscher, L.F. Minister van Sociale Zaken en Werkgelegenheid (2013, November 28th). Nader rapport inzake het voorstel van de Wet werk en zekerheid. Retrieved from
Rijksoverheid website: http://www.rijksoverheid.nl/documenten-en-publicaties Asscher, L.F. Minister van Sociale Zaken en Werkgelegenheid (2013, November 13th).
Wetsvoorstel Wet werk en zekerheid inclusief Memorie van Toelichting. Retrieved from Rijksoverheid website:
http://www.rijksoverheid.nl/documenten-en-publicaties/kamerstukken/2013/11/29/wetsvoorstel-werk-en-zekerheid.html Bos, A.M., & de Graaff, E.V. (2006, December). Payrolling, het outsourcen van
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Curry-Summer, I., Thomas, R., Warendorf, H., (2013, Second edition). The Civil Code of the Netherlands. Alphen aan den Rijn, The Netherlands: Kluwer Law International.
Fleuren, J.W.A. (2009). Wetshistorische interpretative en ‘de bedoeling van de werkgever’. In Bovend'Eert, P.P.T., Broeksteeg, J.L.W., Bunschoten, D.E. [et al.] (ed.), De staat van wetgeving. Offered to Prof.mr. C.A.J.M. Kortmann, pp. 153-174.
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Ministerie van Sociale Zaken en Werkgelegenheid (2015, Januari). Informatie voor
werkgevers; Werkgevers en oproepcontracten. Retrieved form Rijksoverheid website: http://www.rijksoverheid.nl/documenten-en-publicaties/brochures/2015/03/01/wwz-oproepkrachten-wg.html
Ministerie van Sociale Zaken en Werkgelegenheid (2015, Januari). Informatie voor
werknemers; Einde van mijn arbeidsovereenkomst als payrollwerknemer. Retrieved from Rijksoverheid website:
http://www.rijksoverheid.nl/documenten-en-publicaties/brochures/2015/03/01/wwz-payrollwerknemer-wn.html
Ministerie van Sociale Zaken en Werkgelegenheid (2015, May). De transitievergoeding. Retrieved from Rijksoverheid website: http://www.rijksoverheid.nl/documenten-en-publicaties/brochures/2015/06/04/wwz-transitievergoeding.html
Raad voor de Rechtspraak (2013, November 27th). Advies wetsvoorstel tot wijziging ontslagrecht en WW. Retrieved from Raad van de Rechtspraak website:
https://www.rechtspraak.nl/Organisatie/Raad-Voor-De-Rechtspraak/Wetgevingsadvisering/Pages/Wetgevingsadvies-2013.aspx
Raad van State (2013, November 5th). Advies Raad van State inzake de Wet werk en zekerheid en nader rapport. Kamerstukken II 2013/14, 33 818, nr. 4. Retrieved from Raad van State website: https://www.raadvanstate.nl/adviezen/zoeken-in-adviezen/tekst-advies.html?id=11043
