NMa Fines Certifying Organisation of the Temporary Employment Agency Branch

The Netherlands Competition Authority (NMa) has imposed a fine of EUR 10,000 on Stichting Financiële Toetsing (SFT) (Foundation for Financial Assessment), a certifying organisation in the temporary employment agency branch. SFT abused its quality mark to exclude foreign competitors from the market. In the period from October 1998 to September 2001, it was consequently more difficult for foreign temporary employment agencies to gain access to the Dutch market . This is a serious infringement of both Dutch and European competition rules. NMa started an investigation into this following various complaints.

Stichting Financiële Toetsing (SFT) created a quality mark for temporary employment agencies in the form of a register. The aim of this is to offer customers who hire staff from the registered employment agencies the certainty that the temporary employment agency has paid the taxes and social insurance contributions for the personnel who are provided. In the period 1998 to 2001, temporary employment agencies which were not based in the Netherlands could not be included in the register, even if they satisfied the stipulated criteria. As a result, these temporary employment agencies could not hire out staff to temporary employment agencies registered with SFT. Approximately two thirds of all Dutch temporary employment agencies are registered with SFT.

Since NMa assumes that SFT acted autonomously and not on the authority of Algemene Bond Uitzendondernemingen (ABU) [General Association of Temporary Employment Agencies], NMa has not imposed a fine on ABU.

Although a report had also been drawn up in November 2003 on Stichting VRO, which also has a certification scheme for temporary employment agencies, after further consideration NMa sees no cause to take action against Stichting VRO. In contrast to SFT, it appears that Stichting VRO does admit foreign undertakings. Although the conditions which Stichting VRO initially applied did not comply with competition rules, Stichting VRO amended these conditions after consultation with NMa at the beginning of 1999.