19 Nov '24
With the Dutch Tax Authority set to enforce the law on so-called ‘false freelancers’ starting January 1, 2025, organizations are reviewing policies for working with self-employed individuals. Here's what you need to know.
The line between employees and self-employed workers has been debated in the Netherlands for years. Legally, an employment contract exists if there is work, pay, and authority - a standard set in 1907. But today, authority looks different than it did back then. For example, a modern employee working flexibly from home often operates more autonomously than a factory worker in 1907 would have done.
In 2023, the Supreme Court's Deliveroo ruling clarified this with criteria to determine if someone is truly self-employed. These include:
Ultimately, real-world practices outweigh written agreements. Even if a model contract states that parties explicitly do not want to enter into an employment agreement, courts may rule that the freelancer is in fact an employee if the practice does not match the paper.
Starting in 2025, the Dutch Tax Authority will actively enforce rules against false self-employment. Penalties may include corrective measures, extra taxes, and fines. Please note: the Tax Authority cannot impose an additional retroactive levy for the period before January 1, 2025, the period in which no enforcement took place.
Apart from this, freelancers themselves can also start civil litigation and argue that they’re employees, using the Deliveroo criteria. If the court agrees, organizations could face significant employer obligations, such as paying for sick leave or wrongful termination claims.
Organizations should review their freelance relationships to identify genuine self-employment versus potential false freelancers. If needed, they can adjust terms or offer employment contracts. Hiring freelancers is still possible, but how you work together with a freelancer in practice is something to think about carefully.
Contact Anton Avedissian, Michelle Westhoeve, or another member of our Employment Law team. We’re here to help!
12 Mar 25
06 Mar 25
27 Feb 25
26 Feb 25
24 Feb 25
21 Jan 25
16 Jan 25
07 Jan 25
20 Dec 24
29 Nov 24
13 Nov 24
Met uw inschrijving blijft u op de hoogte van de laatste juridische ontwikkelingen op dit gebied. Vul hieronder uw gegevens in om per e-mail op te hoogte te blijven.
Stay up to date with the latest legal developments in your sector. Fill in your personal details below to receive invitations to events and legal updates that matches your interest.
Follow what you find interesting
Receive recommendations based on your interests
{phrase:advantage_3}
{phrase:advantage_4}
We ask for your first name and last name so we can use this information when you register for a Ploum event or a Ploum academy.
A password will automatically be created for you. As soon as your account has been created you will receive this password in a welcome e-mail. You can use it to log in immediately. If you wish, you can also change this password yourself via the password forgotten function.
