Minister Eddy van Hijum of Social Affairs and Employment: “We want people to know what to expect. Many self-employed individuals make a significant contribution to our economy. And there must be room to work as an entrepreneur. Through this legislative proposal, we aim to clarify this. If you are directed in your work and do not bear entrepreneurial risk, you are an employee and have the rights associated with that. And if you truly work independently and run your business, there is plenty of room for that.”
State Secretary Tjebbe van Oostenbruggen of Fiscal Affairs, Tax Office, and Customs: “Since this year, the Tax Office has fully enforced regulations on false self-employment again. The Tax Office considers whether someone behaves like an entrepreneur. The Tax Office always enforces based on laws and regulations and case law. The amended legislative proposal provides clarity to the market. We see that many self-employed individuals and employers are checking whether the right contract form is being used and that the labor market is in motion. We also notice that there are still some uncertainties. Therefore, we focus on good communication and continue to engage with industry organizations to provide as much support as possible in combating false self-employment.”
Legislative Proposal Vbar
In the current version of the legislative proposal Vbar, five criteria regarding direction in work and five criteria about working at ones own risk are considered. Only when these criteria are balanced is it assessed whether someone behaves as an entrepreneur outside the employment relationship. This is known as external entrepreneurship. The proposed amendment gives equal weight to external entrepreneurship alongside direction in work and working at ones own risk.
Supreme Court Ruling
The Supreme Court has indicated in its recent response to prejudicial questions in the Uber/FNV case that there is no hierarchy among the various perspectives that can indicate an employment contract or working as a self-employed person. With the proposed amendment, the cabinet aligns the legislative proposal with this ruling.
Legal Presumption
The legislative proposal Vbar also introduces a legal presumption of employee status. If a worker is paid less than a certain hourly rate, they can claim to be an employee. It is then up to the client to demonstrate that there is no employment contract. This part of the legislative proposal remains unchanged.
Enforcement
The amended legislative proposal has no consequences for enforcement. The Tax Office is already enforcing in this manner regarding false self-employment, taking into account current laws and regulations and case law. Therefore, it is already common practice to weigh all criteria to distinguish true self-employed individuals from employees who should be on the payroll.
In the letter to the House, Minister Eddy van Hijum and State Secretary of Finance Tjebbe van Oostenbruggen write that they see that as a result of the lifting of the enforcement moratorium, the labor market is in motion.
Organizations are actively working to adjust their ways of working so that a task can be filled by a self-employed individual. There are also organizations in sectors such as healthcare, education, and childcare that have convinced workers—who may have previously worked as false self-employed individuals—to come into employment. By self-scheduling, flexible pools, and attention to a good work-life balance, the need for flexibility among many workers is addressed.
The minister and state secretary also acknowledge in the letter that their work is not yet done. They are also receiving stories from organizations and self-employed individuals who find the transition complicated or have concerns about their situation. Therefore, they are focusing on good communication and information dissemination and engaging in discussions with various industry organizations. The impact of enforcement will also be mapped out in the coming months. The House will be informed about this later this year.