Legal expenses insurance (rechtsbijstandverzekering) for employment agencies
An employment agency does not conduct employment proceedings occasionally but as a matter of routine, and that clashes with the case limit in almost every legal expenses policy.
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Work out for yourself what it would cost.
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We compare the offerings of several insurers
An adviser checks whether the cover suits your activities
A premium indication, not personal advice. Prefer to talk it through? Call 072 - 509 24 56.
In brief
The volume is the problem here, not the cover. Dismissal cases, wage claims, discussions about phase classification and about grading under the collective agreement come up continually at an employment agency. Policies therefore have a maximum number of cases per year or a combined handling limit, alongside the maximum for external costs per file. Ask for both limits explicitly; with high volumes they fill up sooner than you expect.
The second theme is liability for accidents at work. Under Article 7:658(4) of the Dutch Civil Code the hirer is liable for the safety of the agency worker working there, but you remain the formal employer and in practice are also held responsible. The injury claim itself is a liability matter. The dispute with the hirer about who bears which part is legal expenses.
The third theme is administrative: the forthcoming admission requirement under the Wtta brings decisions against which objection and appeal are open. That calls for the administrative law module. See also the business legal expenses insurance.
What does legal expenses insurance for employment agencies cover?
The structure of the cover in three parts, with an overview per situation below.
You choose yourself
Modules
The sections that suit your business.
Debt collection
Contracts and suppliers
Employment law and staff
Administrative law and permits
Lawyers
What you get
Legal assistance and legal costs, not compensation for loss.
Your own lawyer on your case
Legal costs included
Advice when a dispute is looming
Know in advance
Limits
Where the cover stops.
A three-month waiting period
Minimum financial interest per case
Maximum external costs
What is covered
Situation
Covered
Collection of an unpaid invoice
Sometimes
A dispute with a supplier over delivery
Yes
A dismissal case or employment dispute
Sometimes
An objection to a permit decision
Sometimes
A dispute that was already running when you took out cover
No
Tax proceedings without that module
No
This overview is general in nature and is not personal advice. What is actually covered, including exclusions, limits and the excess, is set out in the policy conditions and the insurance card (verzekeringskaart) of the insurer; you receive both before you take out cover. Taking out cover without advice? Then read what execution only means for you.
Where things go wrong in practice
Four points that make the difference between a policy that pays out and one that does not.
Watch the maximum number of cases per year
Where most businesses rarely conduct employment proceedings, an employment agency does so as a matter of routine. Insurers limit that with a maximum number of cases per insurance year, with a combined limit for related files, or both. Ask for those limits when taking out the policy and record how relatedness is determined; five wage claims arising from the same collective agreement discussion can be counted as one case, with a single cost maximum.
Who is the employer in an accident at work
Article 7:658(4) of the Dutch Civil Code places the duty of care for safety on the party in whose business the work is carried out, so on the hirer. You remain the formal employer and are therefore often held responsible as well. The injury claim runs through your liability insurance. The question of how you and the hirer stand towards each other is a contractual dispute that does fall under legal expenses. Record the safety arrangements in writing.
An additional assessment does not fall under the standard cover
Discussions about payroll taxes, sector classification or the application of hirer's liability end up with the Belastingdienst (the Dutch tax authority) and not with the sub-district court. An objection and appeal against an additional assessment fall under a separate tax module. Without that module you bear the cost of such proceedings yourself, while the amounts in this sector can mount up sharply because of the size of the wage bill. When taking out the policy, consider whether you want that module.
A hirer taking on an agency worker
The prohibition on obstruction in Article 9a of the Dutch Placement of Personnel by Intermediaries Act (Waadi) forbids you to hinder an agency worker in entering into a contract of employment with the hirer. A clause that does so is void. What is allowed is agreeing a reasonable fee for recruitment and training. Disputes about that with hirers are contractual and fall under the contracts module; make sure your general terms and conditions can be shown to have been agreed on this point.
The three-month waiting period
A dispute that was already running or was foreseeable when you took out the policy is excluded, even after the waiting period and even if you switch to another insurer. So take out the policy while things are calm. This is very much an insurance you have before you need it.
What does your premium depend on?
Wage bill and annual turnover. The basis of calculation for the rate in this sector.
Number of agency workers and phase classification. More short contracts means more employment disputes.
Sectors in which you supply agency staff. Construction and industry have a different accident risk from office work.
Maximum number of employment cases per year. With high volumes, the most important point of comparison.
Maximum external costs per case. Determines what is left in long-running proceedings.
Administrative law and tax modules. For admission decisions and additional assessments; not standard.
Insurers weigh these details differently. That is where your saving is.
How we arrange it
You request a quoteWe take stock of your situation, your risk and your wishes.
We compareseveral insurers, on premium as well as conditions.
You receive a proposalWith an explanation of the differences and the exclusions.
We arrange the switchIncluding cancellation, so there is no gap in cover.
Customers rate our service on four aspects: personal service, service delivery, availability and the outcome. The reviews are collected and published by NH1816 and come from customers who have actually taken out a policy with Finass Advies B.V. or reported a claim.
How many employment cases per year does the policy cover?
That differs per insurer and for an employment agency it is the point to compare on. Conditions have a maximum number of cases per insurance year, a combined limit for related files, or both. Ask as well how relatedness is determined: several wage claims arising from the same collective agreement discussion are sometimes counted as one case, with a single cost maximum.
An agency worker is injured at the hirer's premises. Who is liable?
Article 7:658(4) of the Dutch Civil Code places the duty of care on the party in whose business the work is done, so on the hirer. Because you remain the formal employer, you are often held responsible as well. The injury claim runs through the liability insurance. The dispute with the hirer about how it is shared between you does fall under legal expenses.
Does an additional assessment from the Belastingdienst fall under it?
Only with a tax module. Discussions about payroll taxes, sector classification or hirer's liability run through objection and appeal with the tax authority and not through the sub-district court, and that line is not in the standard cover. Given the size of the wage bill in this sector, this is a module to make a conscious decision about when taking out the policy.
May a hirer take on my agency worker?
Yes. The prohibition on obstruction in Article 9a Waadi forbids you to hinder the agency worker in doing so, and a clause that does is void. You may, however, agree a reasonable fee for recruitment and training with the hirer. A dispute about that is contractual and falls under the contracts module, provided your terms can be shown to have been agreed.
Finass Verzekert is a trading name of Finass Advies B.V. We advise on and arrange non-life insurance on the basis of an objective analysis of several insurers, and receive commission for this from the insurer, which is included in the premium. You pay no separate advice fee. Before you take out cover, we establish your wishes and needs.
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