Imagine this scenario: You have been working for the same company for three years. You know the job inside out, you get along with your colleagues, and you are an integral part of the team. Yet, while your colleague at the next desk has a permanent contract, a pension plan, and protection against dismissal, you are still unsure if you will have a job next Monday. Why? Because you are an uitzendkracht (temporary agency worker).
For many of the nearly 800,000 temporary workers in the Netherlands, this uncertainty is a daily reality. The relationship between the temporary employment agency (uitzendbureau), the hiring company (inlener), and the worker is complex. The central question for anyone in this position is: “What rights do I actually build up as a temporary worker?”
The answer lies in the “Fasensysteem” (Phase System). This legal framework dictates that the longer you work, the more rights you accrue—transforming from complete flexibility to full security. Crucially, significant changes were implemented in 2023, shortening the duration of the early phases and allowing workers to build up rights faster than before.
In this comprehensive guide, Law & More breaks down the complex legal landscape of the Phase System. Whether you are an expat working in the Brainport region, a Dutch national navigating the flex-market, or an employer, this article provides the clarity you need.
The Legal Question
To understand your position, we must answer the following core question:
How does the phase system at temporary employment agencies function, what rights does a temporary worker accrue in each phase, and what are the specific legal consequences regarding dismissal and acquired rights when transitioning between phases?
The Legal Framework: Legislation and CAOs
The rights of a temporary worker are not arbitrary; they are grounded in a rigid framework of Dutch civil law, Collective Labour Agreements (CAOs), and European directives.
A. The Statutory Basis
The foundation is found in the Dutch Civil Code (Burgerlijk Wetboek or BW). Article 7:690 BW defines the temporary agency work agreement. However, the specific rules regarding the phases are laid out in Article 7:691 BW. This article introduces the concept of the uitzendbeding (agency clause) and dictates the terms under which an agency can offer flexible contracts.
Furthermore, Articles 8 and 8a of the Waadi (Act on Allocation of Labour by Intermediaries) implement the principle of equal treatment, derived from Article 5 of the EU Directive 2008/104/EG. This ensures that, regarding essential working conditions (like pay and working hours), temporary workers are treated equally to direct employees.
B. The Collective Labour Agreements (CAOs)
While the law sets the baseline, the specifics are often determined by the applicable CAO. In the Netherlands, two main CAOs govern the industry:
- ABU (Federation of Private Employment Agencies)
- NBBU (Dutch Federation of Mediation and Temporary Employment Agencies)
Historically, these CAOs allowed for very long periods of uncertainty (up to 5.5 years). However, under the 2023 changes, the path to a permanent contract has been shortened significantly to improve the position of workers.
C. The Uitzendbeding (Agency Clause)
This is the most critical concept for new temporary workers. The uitzendbeding is a clause in the contract stating that the employment agreement ends immediately and automatically if the hiring company (the client) ends the assignment.
- When does it apply? Only in the first phase (Phase A or 1-2).
- When does it expire? Under statutory law, after 26 weeks. However, CAOs extend this to a maximum of 52 weeks (previously 78).
- Legal limit: As clarified in ECLI:NL:PHR:2022:610 and ECLI:NL:GHAMS:2022:3699, this clause is strictly limited to the first phase. It cannot be invoked once a worker has progressed to Phase B.
D. Successive Employership (Opvolgend Werkgeverschap)
A common misconception is that if you switch agencies but stay at the same desk doing the same job, your “counter” resets to zero. This is incorrect. Under Article 7:691 paragraph 5 BW, your employment history counts if the new employer is considered a “successive employer.”
Since 1 July 2015, the so-called “bandencriterium” (connection criterion) has been abolished (ECLI:NL:HR:2017:2905). This means it no longer matters if there is a commercial connection between the old and new agency; if you perform the same or similar work, your built-up rights (and phase) travel with you.
The Phase System Explained
The system is divided into three distinct phases. Depending on your agency’s CAO, these are labelled A-B-C (ABU) or 1/2-3-4 (NBBU).
PHASE A (ABU) / PHASE 1-2 (NBBU) — The Flexible Phase
- Duration: Maximum 52 weeks (Since 2023; previously 78 weeks).
- Key Characteristic: Maximum flexibility for the employer.
Your Rights (and lack thereof):
In this phase, the uitzendbeding is valid. If the client stops the assignment—even due to illness—your contract ends immediately. Generally, the rule “no work, no pay” applies, meaning you are not paid for hours you do not work unless explicitly agreed otherwise.
Dismissal Protection:
There is very limited protection against dismissal. As confirmed in ECLI:NL:HR:2023:426, the employment can end instantly upon the termination of the assignment. However, you do build up a right to a transition payment (transitievergoeding) if you are dismissed after 24 months, though practically, this applies if Phase A is followed by Phase B contracts (Article 7:673 BW; ECLI:NL:RBLIM:2017:5039).
PHASE B (ABU) / PHASE 3 (NBBU) — The Security Phase
- Duration: Maximum 3 years (previously 4 years).
- Contracts: Max 6 temporary contracts (ABU) or 6-8 (NBBU).
Key Characteristic: The uitzendbeding disappears. This is a fundamental shift in your legal status.
Your Rights:
- No Instant Dismissal: The agency cannot fire you just because the assignment stops. If there is no work, they must continue to pay your wages (loondoorbetaling).
- Dismissal Protection: To fire you, the agency must follow standard dismissal law (Article 7:672 BW). They need permission from the UWV (Employee Insurance Agency) or a dissolution by the court.
- Notice Period: A statutory notice period of at least one month applies.
Jurisprudence:
If an agency tries to use the uitzendbeding in this phase, the dismissal is invalid (ECLI:NL:CRVB:2016:3081). You can claim reinstatement of employment.
PHASE C (ABU) / PHASE 4 (NBBU) — Indefinite Employment
- When: Automatically after completing Phase B.
- Key Characteristic: Permanent employment (contract voor onbepaalde tijd).
Your Rights:
You are employed by the agency indefinitely. You enjoy full dismissal protection, identical to any permanent employee in the Netherlands. Even if the agency has no client for you, they must pay your salary. You are also entitled to equal working conditions as the client’s own staff (Article 8 Waadi; ECLI:NL:HR:2024:1303).
Jurisprudence:
Courts are strict in protecting Phase C workers. In ECLI:NL:GHSHE:2025:1737, the court ordered the reinstatement of employment after an unjustified dismissal in Phase C. Furthermore, ECLI:NL:PHR:2025:356 confirms that Phase C always constitutes an indefinite contract.
Visual Overview: The Rights Escalator
| Feature | Phase A (1-2) | Phase B (3) | Phase C (4) |
|---|---|---|---|
| Duration | Max 52 Weeks | Max 3 Years | Indefinite |
| Agency Clause | Yes (Fire at will) | No (Invalid) | No |
| Sick Pay / No Work | No (usually) | Yes (Mandatory) | Yes (Mandatory) |
| Dismissal Protection | Minimal | Standard (UWV/Court) | Full |
| Contract Type | Temporary | Fixed-term (max 6) | Indefinite |
| Notice Period | None (Immediate) | Min. 1 Month | Statutory |
Transitional Rules and Successive Employership
Understanding when you move from one phase to another is crucial to claiming your rights.
The “Add-up” Rule (De Optelregel)
According to Article 7:691 paragraph 4 BW, periods of employment separated by a gap of six months or less continue to count towards your phase accumulation. You do not start over in Phase A after a short break.
- Example: You work 30 weeks via Agency A. You take a 2-month break. You return to Agency A. You start at week 31, not week 1.
Successive Employership (Opvolgend Werkgeverschap)
This is where many agencies try to reset the clock, and where many workers lose out. Since 2015, if you switch agencies but continue doing “the same or similar work” (often at the same client), the new agency must count your previous weeks/years worked.
Case Law Example:
A worker is employed for 1 year via Agency A at a logistics firm. Agency A loses the contract, and Agency B takes over. The worker stays on the forklift. Agency B cannot put the worker in Phase A. They must respect the 1 year of history, likely placing the worker immediately into Phase B.
Courts are vigilant here. In ECLI:NL:RBNNE:2025:5517, the court ruled that employment history must be fully included. Similarly, ECLI:NL:HR:2025:1733 emphasizes that accrued rights cannot be ignored.
Practical Situations: Are Your Rights Being Violated?
Here are three common scenarios where Law & More often sees agencies making errors—intentional or otherwise.
Situation 1: The “Automatic” End in Phase B
The Scenario: You have been working for 60 weeks (Phase B). The client stops the project. The agency says, “Bad luck, your contract ends automatically today because the work stopped.”
The Legal Reality: This is illegal. The uitzendbeding expired after 52 weeks. The agency is applying a Phase A rule to a Phase B worker.
Action: The termination is invalid (ECLI:NL:HR:2023:426). You must protest immediately, offering your labour and demanding wage payments (loondoorbetaling).
Situation 2: The “Fresh Start” at a New Agency
The Scenario: You worked 18 months via Agency X. You switch to Agency Y for the same job. Agency Y offers you a Phase A contract with no security.
The Legal Reality: Agency Y is a “successive employer.” They are legally obliged to count your 18 months. You should technically enter Phase B immediately.
Action: Demand a correct phase classification based on ECLI:NL:CRVB:2016:3081. If they refuse, you may be eligible for back pay and a transition payment if they later fire you incorrectly (ECLI:NL:RBNNE:2025:4240).
Situation 3: Dismissal in Phase C
The Scenario: You have a Phase C contract. The agency wants to fire you because “business is slow.”
The Legal Reality: They cannot simply fire you. They need a valid dismissal ground (like economic necessity) and must go through the UWV or the Sub-district Court (Kantonrechter).
Action: Do not sign a settlement agreement (vaststellingsovereenkomst) without legal advice. If dismissed without procedure, you can claim reinstatement (ECLI:NL:GHSHE:2025:1737) or significant compensation.
Financial Rights and Compensation
Transition Payment (Transitievergoeding)
Since the introduction of the WAB (Balanced Labour Market Act), you accrue a right to a transition payment from day one. However, payment is usually mandatory if the contract ends on the initiative of the employer.
- Article 7:673 BW: This applies even in Phase A (ECLI:NL:HR:2025:1808).
Statutory Interest on Late Wages
If an agency delays paying your salary (e.g., during a dispute about which phase you are in), they owe you more than just the gross wage.
- Statutory Increase: Up to 50% penalty (Article 7:625 BW).
- Statutory Interest: Interest over the outstanding amount (Article 6:119 BW).
Case law (ECLI:NL:RBROT:2025:8995 and ECLI:NL:RBMNE:2025:2452) confirms this is automatically due.
Critical Warning: Limitation Periods (Verjaringstermijnen)
In employment law, “snoozing is losing.” If you wait too long to claim your rights, they vanish.
- Wage Claims: You have a strict 6-month period to claim penalties on late wages (Article 7:621 BW). For the wage itself, it is 5 years, but waiting weakens your evidence position.
- Transition Payment: You must file a petition with the court within 3 months of the employment ending (Article 7:686a BW). This is a “hard” deadline; one day late is too late.
- Phase Classification: General claims expire after 5 years (Article 3:307 BW), but you should act immediately.
ECLI:NL:HR:2025:1808 serves as a stark reminder of the importance of acting within these timeframes.
Equal Treatment (The “Waadi”)
One of the most powerful tools for a temporary worker is the Waadi. Under Article 8, you are entitled to the same “essential working conditions” as a direct employee at the company where you work. This includes:
- Wages
- Working hours
- Overtime rates
- Break times
- Vacation days
This means you cannot be paid less than the person sitting next to you doing the same job just because you are an agency worker. This is backed by EU Law (Article 5 Directive 2008/104/EG) and confirmed by the Supreme Court in ECLI:NL:HR:2024:1303.
Practical Tips for Temporary Workers
- Be Your Own Administrator: Keep every payslip, contract, and email. Note down the exact start and end dates of every assignment. When a dispute arises about your phase, you need to prove your history.
- Count Your Weeks: Don’t rely on the agency’s portal. Manually count your weeks worked. Include gaps of less than 6 months.
- Switching Agencies? Inform the new agency of your history in writing before you sign. Provide proof of your previous employment to ensure they classify you in the correct phase.
- Spot the Red Flags: If you have been working for over a year and your contract still mentions the “uitzendbeding,” or if you are fired instantly during illness, something is legally wrong.
- Act Fast: If you are dismissed or underpaid, send a written objection immediately. Remember the 3-month deadline for transition payments and 6-month deadline for wage penalties.
When to Seek Legal Help
While many administrative errors can be fixed with a sharp email to your HR contact, some situations require professional intervention. You should consider legal counsel if:
- Phase Disputes: An agency refuses to recognize your previous years of work after a takeover (successive employership).
- Unlawful Dismissal: You are fired instantly while in Phase B or C, or during illness.
- High Value Claims: You are owed substantial back pay or a transition payment that is being denied.
- Settlement Agreements: Never sign a termination agreement in Phase B or C without a legal check.
Litigation in these matters is often worth the investment because the stakes—months of salary, job security, and compensation—are high. Law & More specializes in complex employment disputes and can assist in enforcing your rights under the phase system.
Conclusion
The Dutch Phase System acts as a ladder: the higher you climb, the safer you are.
- Phase A offers flexibility but little security.
- Phase B removes the agency clause and demands proper dismissal procedures.
- Phase C guarantees an indefinite contract and full equality.
The 2023 reduction in phase duration is a victory for workers’ rights, moving you to Phase B and C faster than ever before. Furthermore, the abolition of the “bandencriterium” ensures your rights survive a change in agency.
However, the complexity of the system allows for errors and exploitation. As a temporary worker, your strongest defense is knowledge. By understanding which phase you are in and keeping strict records of your employment history, you can ensure that “flexibility” does not come at the cost of your legal rights.
Do you have questions about your position as a temporary worker, or are you involved in a dispute regarding the phase system? Law & More is ready to provide expert legal advice tailored to your situation.