As of 1 January 2025, the Dutch tax authorities will resume enforcement on false self-employment. In essence, false self-employment occurs when individuals operate as ‘self-employed/freelancers’ while actually meeting the criteria of an employment relationship. This situation can lead to significant tax and financial implications for organizations that engage freelancers, as violations may result in additional levies.

Beyond tax-related risks, there are also labor law risks associated with freelancers. For example, a freelancer, pension fund, or labor union may argue that there is an employment relationship rather than freelance work. If they successfully make this case, it could have significant consequences for matters such as pension entitlements, employment conditions/collective agreements, dismissal protection, continued salary payment during illness, holiday pay, and more.

What to look out for?

The criteria for assessing false self-employment have so far been primarily established through case law. In the Deliveroo case, a set of factors was developed to determine whether work is being carried out as a freelancer or as part of an employment relationship. Among other things, the following should be considered (not limitative):

• the nature and duration of the work;
• the way in which working hours and remuneration are determined;
• the organisational embedding of the work and the worker;
• who bears the commercial risk and whether there is entrepreneurship.

The ‘Deliveroo criteria’ must be seen in relation to each other and in conjunction.

In addition, the Ministry of Social Affairs and Employment recently presented a legislative proposal (VBAR Act), which outlines a legal framework to further clarify the relevant elements in determining whether a situation involves an employment relationship or self-employment. The aim is for this law to take effect on January 1, 2026.

Our expertise

Are you, as an organization, looking for an efficient way to quickly and easily gain insight into the nature of your employment relationships? Or do you have questions about the (potential) impact and consequences of the end of the enforcement moratorium, the Deliveroo ruling, and/or the Wet VBAR proposal for your organization? The diverse reports surrounding the current issue of ‘false self-employment’ may cause uncertainty about the nature of your employment relationships. Our self-employment and false self-employment practice group, consisting of experienced employment lawyers and tax specialists, will be happy to help you. We are here to assist you in taking proactive steps, including:

• Reviewing the situation around your current freelancers using a questionnaire;
• Assessing whether there may be false self-employment and the associated risks;
• Assess the risks within your organization based on the (model) agreements; and
• Talking to freelancers in case of an increased risk of false self-employment.

By acting proactively, you will be better equipped to handle the upcoming enforcement measures by the Dutch tax authorities and any new legislation.