A payrollovereenkomst is an employment contract between a payroll company and a worker who is recruited and supervised by a client organisation, not the payroll provider. The payroll company takes on the administrative and legal obligations of employership, including wage payment, payroll tax, pension, and absence administration, while the client directs day-to-day work.
Since the Wet arbeidsmarkt in balans (WAB) took effect in 2020, payroll workers enjoy strict legal equivalence with employees who are directly employed by the client. They must receive the same primary and secondary terms of employment, including wages, allowances, leave, overtime rules, and any thirteenth-month payment. From 2021 they also accrue a pension that is at least equivalent in value to the client's scheme, or to the sector average where no client scheme exists.
The payroll regime differs from agency work because the payroll company plays no role in recruitment or allocation and may not apply the flexible phases of the uitzend CAO. From 2026, payroll providers will need a Wtta licence.