The distinction between employees and self-employed workers in the Netherlands has always been challenging, and recent legislative changes will likely add to the complexity.
Although the DBA Act has been in effect in the Netherlands since 2016, several areas have proven challenging. Given the increasing number of freelancers in the Netherlands, now estimated to exceed 1.5 million, the government aims to address issues related to false self-employment more effectively.
From 1 January 2025, stricter rules under the Deregulation of Labour Relations Act (DBA) will tackle false self-employment, ensure fairness, and clarify worker classifications.
As we support clients and consultants in the Netherlands, here are the key points to know about these changes.
What’s Changing?
- The Dutch government has announced the end of the enforcement moratorium on false self-employment starting on 1 January 2025. This marks a significant shift in how tax authorities will enforce compliance.
- Employers can face payroll tax adjustments, fines, and additional assessments without prior warning if a worker is misclassified without offering a correction period.
- Clearer guidelines will be enforced to differentiate between employees and self-employed workers.
Key Challenges:
- Businesses may face stricter scrutiny regarding worker classification.
- The discontinuation of model agreements means organisations can no longer rely on previously approved contracts as a safeguard.
- Self-employed workers earning less than €33/hour (proposed threshold) may be presumed to be employees, requiring them to prove their independent status.
- However, this proposed threshold is only one factor in the classification of workers, and earning over €33 per hour does not automatically guarantee self-employed status.
- Comprehensive assessments will be conducted to ensure that the worker meets the legal criteria for self-employment.
- Let us take the guesswork out of the process—our team is here to ensure a smooth and compliant transition for our clients and consultants.
- If the assessment determines that the individual needs to be payrolled, their employment conditions must align with those provided to permanent employees.
- The Inlenersbeloning in Dutch labour law ensures that temporary agency workers receive the same pay and employment conditions as employees in the hiring company, and under the new changes, stricter enforcement and potential updates aim to further align agency workers’ rights with those of permanent employees.
- In the past, the VAR statement served as proof that a self-employed worker had no tax liability; however, this is no longer valid. Under current regulations, all parties involved in the hiring chain may be held liable for tax compliance.
What Can Businesses Do?
Reassess Current Engagements:
- Reassess existing contracts with self-employed workers. Conduct a thorough audit of all engagements with self-employed workers.
- Evaluate whether these workers truly meet the criteria for self-employment (e.g., autonomy, economic risks).
Stay Ahead with Expert Guidance:
With over 30 years’ experience in flexible staffing solutions in the Netherlands, Brabers is here to help you navigate the upcoming changes in employment law. The government will be rolling out new regulations in the coming months, and staying compliant is essential to future-proofing your business.
The VBAR Act, set to replace the DBA Act, is currently being drafted and is expected to take effect no earlier than January 1, 2026. Its goal is to reduce false self-employment and provide a clear framework for determining whether someone is classified as an employee or a self-employed professional.
Whether it’s assessing current arrangements, offering employment contracts, or partnering with us for tailored solutions, we’ve implemented robust structures to ensure clients and contractors are fully prepared for the new changes ahead.
