What to do about casual work – an alternative approach

The new legislation balances the flexibility needs of enterprises with the security needs of employees. It does this through defining four distinct phases of employment defined by time periods working in temporary agency work. After 18 months with a single enterprise or 36 months with various enterprises, employees of temporary hire agencies are entitled to an open-ended contract with the agency.

A need to offer tailored solutions
Many enterprises now operate with a small core workforce. The capacity to expand and contract according to the demands of the business cycle is a key feature of a competitive strategy in world markets.

This means that enterprises require a buffer workforce that sits between its core workforce and short-term temporary staff for meeting ad hoc or seasonal demands. This buffer workforce needs to be highly skilled so it can work productively with the core workforce. It also needs access to the same working conditions in terms of OH&S training and support. However, this buffer workforce in most instances cannot be engaged in the same way as an enterprise’s core workforce due to unpredictable business cycles. 

The Dutch legislation balances the principles of employment flexibility for the enterprise, employment security for the individual and the needs of excluded groups. As such, it offers a valuable guide to a collectively bargained outcome for managing temporary work. It shows how appropriate regulatory arrangements can be put in place to cater specifically for the needs of the major stakeholder groups involved.