Dutch Organizations Urged to Address 'False Self-Employment' Risks

In a significant move affecting the labor market, organizations in the Netherlands have been advised to reassess the employment status of individuals working for them in light of anticipated reforms and recent changes in tax enforcement practices. This guidance was issued by legal experts Stephanie Dekker and Floor Hintzen from the law firm Pinsent Masons, as the nation prepares for a general election scheduled for October 2025, amidst a political climate marked by a caretaker government following the collapse of the previous coalition.

The advisement comes as the Dutch government, despite its demissionary status, continues to actively pursue labor market reforms. Notably, on July 7, 2025, the demissionary cabinet submitted a revised version of the Assessment of Employment Relationships and Legal Presumption Bill (Wet VBAR) to the House of Representatives (Tweede Kamer). This legislative initiative aims to clarify the criteria determining whether a worker is classified as an employee or a self-employed individual.

According to Dekker and Hintzen, the proposed framework introduces two core elements for assessment: indicators of authority and control—which suggest employment status—and indicators of working at one's own account and risk, indicating self-employment. A significant amendment in the revised Wet VBAR explicitly references external entrepreneurship as a primary criterion for self-employment, aligning with a recent ruling by the Dutch Supreme Court in the Uber/FNV case from February 2025.

The amended bill also establishes a legal presumption of employment for individuals earning below €36 per hour, effective January 1, 2025. This shift places the burden of proof on organizations to demonstrate that individuals earning under this threshold are self-employed, significantly increasing compliance risks for employers.

While the Wet VBAR is moving forward, an alternative proposal, the Self-Employed Persons Bill (Zelfstandigenwet), has also been introduced by members of the Dutch parliament from four political parties—VVD, D66, CDA, and SGP. This draft bill is currently undergoing public consultation and is designed to create a three-step assessment process to determine lawful self-employment. Under this alternative, individuals must demonstrate adequate provisions for disability insurance and retirement, which reflects a broader shift in Dutch labor policy aimed at reducing instances of false self-employment while still allowing for legitimate entrepreneurship.

The urgency of the situation is heightened by the end of an enforcement moratorium by the Dutch tax authority concerning misclassified self-employment relationships, which concluded on January 1, 2025. This development underscores the necessity for organizations to reassess their engagement models to mitigate compliance risks effectively.

As labor market dynamics evolve in the Netherlands, organizations are urged to closely monitor legislative developments and prepare for the implications of these potential reforms. Early action in reviewing current working arrangements can aid in identifying risks associated with self-employment claims and ensuring adherence to new legal standards. Dekker stated, "With two parallel legislative tracks now in motion, organizations should closely monitor developments, assess their current engagement models, and identify where risks of self-employment claims may exist within their organization. Early preparation will help mitigate compliance risks."