Home Blog Sham Arrangements in the Temporary Employment Industry: A Moral Issue

Sham Arrangements in the Temporary Employment Industry: A Moral Issue

August 12, 2026

It is a popular news item once again: bogus structures in the temporary employment sector. An issue that has been going on for many years. Despite attempts by the Dutch government to curb the problem, this has not yet been sufficiently successful from a legal standpoint. It is therefore a moral issue concerning fair business practices and equal net pay for individuals in the same position, regardless of their nationality and background.

Sham constructions explained

Within the Dutch temporary employment sector, many things are well-organized. For example, there is the SNF for minimum housing standard, SNA for the limitation of liability risks, and the NBBU for supervision and advocacy regarding laws and regulations. Unfortunately, there are organizations within the Netherlands that deliberately and knowingly bypass the complete package of measures through sham constructions. A morally highly irresponsible way of doing business whereby migrant workers are offered a foreign employment contract (AOV) to work in the Netherlands. In doing so, a European country with the lowest minimum wage and employment benefits is generally chosen. For example: a person with Romanian nationality is contracted with an AOV based on Lithuanian law. Thereby deliberately undermining the objectives of the Appealing Bogus Arrangements Act discarded since 2014. The motto here is: everything goes in the race for the lowest price for temporary agency work.

Through sham structures in the temporary employment sector, migrant workers are confronted with unclear payment arrangements, a lack of social security, and the evasion of Dutch taxes. The gross salary is equal to the Dutch salary, but payment is made in accordance with the social labor law of the country under which the disability insurance (AOV) was concluded. There, no or a much lower social safety net applies, there are no or fewer vacation days / holiday allowance, etc. The migrant worker draws the short straw. Offending companies pass on part of the benefit to their clients. This creates an uneven playing field for Dutch temporary employment agencies that do operate in compliance with the Dutch Posting of Workers Act (WAS). Sometimes hiring companies are not aware that their partner is using sham structures. Too often, however, they turn a blind eye in favor of a lower hourly rate. To combat this, we are seeing movements arise in the temporary employment sector to hold hiring companies liable for the use of sham structures by their temporary employment partners.

Detecting sham employment constructions

Detecting bogus structures does not have to be complicated. When bogus structures are used, the employed personnel have a foreign contract and a corresponding payslip. Pay particular attention to things such as pension accrual and vacation days. By requesting a payslip from random temporary workers with a certain regularity, you as a company keep your finger on the pulse. Upon receiving the payslip via the temporary worker, one can also request a payslip from the temporary employment agency itself in order to find out whether they are playing with open cards.

Our vision for a fair temporary employment sector

At EU-People, we believe in transparency, respect, and fair treatment for everyone who works through us. Our vision is based on a clear, direct, and correct way of working in which the well-being of our temporary workers is central. We strongly oppose practices that negatively affect the sector and are committed to a labor market in which everyone, regardless of origin or position, is treated with dignity.

How it should be done – Our approach

Our approach sets us apart from others and establishes the standard for ethically responsible business within the temporary employment industry. We achieve this by:

Full Transparency: At EU-People, every employee is fully informed of their employment conditions, rights, and obligations before signing the disability insurance (AOV).

Fair Pay: We ensure that our temporary workers receive the same pay as permanent employees in the same position.

Direct Communication: We maintain direct lines of communication with our temporary workers so that we can identify concerns, complaints, or suggestions before any irritation arises.

Reliable Partners: We work with partners who share our values and are also committed to fair labor practices.

Why this matters

Fair labor practices are essential for building a healthy and sustainable economy and society. They ensure equality, reduce poverty, and promote a positive working environment. At EU-People, we view this as our corporate responsibility, but above all as our moral duty.

Conclusion

The road to a fairer temporary employment industry is long, but at EU-People we are determined to remain at the forefront of this movement. We invite all companies, workers, and partners to join us in the fight against sham arrangements and for a more transparent, fairer labor market.

Interested in ethically responsible business in the temporary employment sector? Contact us to learn more about our approach and how together we can be part of the solution.

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