False self-employment in the Dutch taxi sector is a growing problem that not only affects the taxi drivers themselves, but also has broader consequences for the labour market and social security.
This concerns drivers who formally work as independent contractors, but in practice are dependent on a single client, often large taxi platforms. This situation creates an unequal relationship, where the driver has no control over crucial aspects such as working hours and rates, while he or she is still treated as an independent contractor.
This phenomenon of false self-employment is reinforced by the use of flexible contracts, which allow companies to avoid their responsibilities. Employers benefit from these structures because they have to pay less social security contributions. However, the drivers themselves have virtually no protection, which makes them vulnerable in the event of illness, unemployment or disability. This problem is not limited to the taxi sector, but is also common in sectors such as food delivery and construction.
legislation
In 2016, the Deregulation Assessment of Employment Relationships Act (DBA) was introduced with the aim of tackling bogus self-employment. However, enforcement of this law was quickly suspended due to numerous ambiguities, which allowed bogus constructions to continue without clients being punished for this. This led to companies being able to continue hiring bogus self-employed workers virtually unhindered for years.
However, a major change is on the way from 1 January 2025: the Tax Authorities will enforce the DBA Act more strictly from that date. Companies that hire bogus self-employed persons for work that must actually be carried out as an employment relationship can then expect fines and additional assessments. This change will have major consequences for many taxi drivers and their clients. If there is a relationship of authority, an important criterion for establishing an employment relationship, the company can be held responsible and sanctions may follow.
State Secretary Idsinga (Taxation and Tax Administration) emphasizes that independent entrepreneurs remain an important pillar of the Dutch economy. “In the Netherlands, independent entrepreneurs make an important contribution to our economy. And that will continue to be the case,” Idsinga stated.
He made it clear that entrepreneurs who are actually self-employed can simply continue their activities. However, the State Secretary also pointed out the negative consequences of bogus self-employment, which he believes leads to unfair competition and unequal employment conditions. “The government wants to restore this balance on the labor market,” said Idsinga. He explained that the lifting of the enforcement moratorium is an important measure in this direction.
transition period
Idsinga acknowledged that the changes will require a lot from companies and self-employed persons, who are currently preparing for the enforcement of the Deregulation Assessment of Employment Relations Act (DBA) from 1 January 2025. “Although many companies and self-employed persons are busy preparing for the enforcement from 1 January 2025, I am also aware that the adjustments will require a lot from them,” he indicated. To accommodate companies, a transition period has been set for 2025. Companies that can demonstrate that they are taking concrete steps to combat bogus self-employment will not be fined for any offences in the first year. This approach gives companies the space to adapt to the new reality without immediately being confronted with heavy sanctions.
model agreements
Another important aspect of the new approach is the decision to no longer approve model agreements. These model agreements, which were provided by the Tax and Customs Administration to provide clients and self-employed persons with certainty in advance, often prove to be untenable in practice. Whether there is actually self-employment depends on the actual work situation and not on what is stated in the contract. Existing model agreements will still be honored until the end date, but new ones will no longer be approved.
The impact of these changes will become increasingly clear in the coming months. The Tax and Customs Administration, in collaboration with industry organizations and other stakeholders, will continue to provide information to both clients and self-employed persons. This will be done, among other things, via webinars, information sessions and individual company visits, with the aim of removing as much unrest as possible.
However, it remains exciting for the taxi sector to see how the stricter enforcement will work out in 2025. Many drivers have been under pressure for years due to the working conditions and the limited rights they have as bogus self-employed persons. end of false self-employment could be an important step towards fairer working conditions, but it remains to be seen how the sector and the platforms involved will respond to the new reality.
Image: Martijn Beekman / Pitane Blue Media
