What is a payroll agreement?
The payroll contract is the temporary employment contract involving three parties(Article 7:692a of the Civil Code). These are the payroll company (the official employer), the employee, and the company where the employee is deployed through the payroll company (the hirer). A characteristic feature of the payroll contract is that the hirer is the only company where the work is performed and, for example, that this type of contract may not involve the allocation function, which means, in brief, that the payroll contract may not have come about in the context of bringing supply and demand on the labor market together. Since Jan. 1, 2020, the payroll employee is entitled to the same employment conditions as employees of the hirer itself, and since Jan. 1, 2021, the payroll employee is also entitled to pension accrual.
