The Deregulation Assessment of Employment Relationships Act (DBA) is about to herald a new era for the Dutch labor market.
From 1 January 2025, the Tax and Customs Administration will tighten enforcement of this law, a measure that will mainly impact sectors where bogus self-employment is common, such as the taxi sector. This stricter approach is intended to tackle abuses and create a level playing field for all workers.
In the taxi sector, it has been common practice for years that drivers are hired as independent contractors without staff (zzp'ers). Although this construction suggests entrepreneurial freedom, in many cases it appears that drivers work under conditions that are more similar to a regular employment contract. False self-employment, as this phenomenon is called, means that drivers are independent on paper, but in fact function as employees. They often have little to no say in their working hours and working conditions and in many cases are economically dependent on one client.
additional assessments
The Tax and Customs Administration warns that this practice will no longer be tolerated. Companies that employ drivers as independent contractors from 2025 onwards, while there is a relationship of authority or other characteristics of an employment relationship, can expect fines and additional assessments. The then State Secretary of Finance emphasized the importance of independent contractors for the economy, but also saw the need to tackle excesses. "The government wants to restore this balance on the labor market," he stated. According to him, bogus self-employment creates unfair competition, undermines the legal position of employees and leads to unequal employment conditions.
In order to give companies time to prepare for the stricter enforcement, the government has set a transition period. Taxi companies that can demonstrate that they are serious about revising employment relationships will not be fined for violations in the first year. However, the Tax and Customs Administration emphasizes that this leniency arrangement is temporary and that companies have no reason to sit still.
If the Tax Authorities decide that there is in fact an employment relationship, the client must pay retroactive payroll tax and social security contributions and possibly a fine.
An important change is the decision not to introduce new model agreements more to approve. Previously, companies and self-employed persons could obtain certainty in advance about the nature of their employment relationship with such agreements. In practice, however, these agreements often proved insufficient, because the Tax Authorities consider the actual situation more important than what is on paper. Existing agreements remain valid until their expiry date, but new ones are no longer issued. This forces both taxi companies and drivers to take a critical look at their working arrangements and cooperation.
authority relationship
For drivers, this means that they must pay more attention to maintaining their independence. This can be done by using their own materials, determining their own working hours and having multiple clients. It is important for clients to avoid giving instructions that indicate a relationship of authority or having a driver work exclusively for their company. Both parties must also be well informed about the criteria used by the Tax Authorities, such as the absence of a relationship of authority, taking entrepreneurial risks and having a diverse clientele.
The announcement of stricter enforcement brings tension in the taxi sector, but at the same time also offers opportunities. By proactively working on revising employment relationships, both drivers and clients can prepare for the new situation. In this way, they prevent legal problems and contribute to a fairer and more transparent labor market.
Self-employment as a self-employed person is not determined by the number of clients, but by a broader set of criteria that provide insight into the nature of the employment relationship. The Tax and Customs Administration uses a holistic approach in which various aspects of the work and business operations of the self-employed person are assessed. The most important criteria that play a role in determining self-employment are explained below.
An important indication of independence is taking entrepreneurial risk. This means that a self-employed person bears their own financial risks. Think of investments in business assets, such as tools, equipment or a workspace. The risk of non-payment by clients or not being paid for disappointing work is also an indication of self-employment. Entrepreneurial risk distinguishes self-employed people from employees, who often enjoy financial security through an employment contract.
autonomy
The degree of autonomy in performing work plays a crucial role. A self-employed person must be able to determine how, when and where the work is performed. This includes the freedom to choose their own methods and processes without a client giving direct instructions. Autonomy shows that the self-employed person operates as an independent entrepreneur and is not under the authority of a client.
A self-employed person must profile themselves as an independent entrepreneur. This can be done by means of their own corporate identity, such as a company website, logo or advertising campaigns. Having multiple clients can play a role here, but is not an obligation. Actively recruiting new clients or assignments also shows that the self-employed person runs their own business and is not exclusively dependent on one client.
A characteristic difference between a self-employed person and an employee is the absence of a relationship of authority. This means that the client does not exercise control over the way in which the self-employed person performs his work. When a client does give instructions about working hours, working methods or other aspects of the performance, this may indicate an employment relationship that is more like an employment contract.
multiple clients
Although multiple clients are often mentioned as a sign of self-employment, it is not a hard requirement. A self-employed person can be completely dependent on one client and still be considered self-employed, as long as he or she meets other criteria such as entrepreneurial risk and autonomy. This emphasizes the importance of the actual work situation over theoretical assumptions.
De criteria used by the Tax Authorities, are intended to combat bogus self-employment. This is done to prevent employees with fixed working conditions and authority relationships from being treated unfairly as self-employed, which leads to unequal working conditions and unfair competition. It is essential for self-employed persons to keep these criteria in mind when drawing up agreements and carrying out assignments.
By being aware of these aspects and recording them properly in agreements and work practices, self-employed persons can demonstrate that they meet the requirements of the Tax Authorities. It remains important to align the actual situation with the recorded agreements, as the Tax Authorities always look at the actual implementation when assessing independence.
