The Dutch labour market has undergone a significant shift. Since the 1^st of January 2025, the Tax and Customs Administration (Belastingdienst) has resumed active enforcement against false self-employment, a practice known in Dutch as schijnzelfstandigheid. For businesses that engage freelancers and for independent contractors themselves, understanding the legal framework and its consequences has never been more urgent. 

What Is False Self-Employment? 

False self-employment occurs when a working relationship is labelled as self-employment in a contract, yet the actual circumstances of that relationship resemble an employment contract. In other words, the contractor works like an employee but is formally classified as a freelancer (zzp'er). They work under supervision, within fixed hours, using the client's equipment, and without genuine entrepreneurial independence. 

This situation creates real risks. Employers avoid paying payroll taxes and social security contributions. Freelancers forgo statutory protections such as sick pay, holiday entitlement, and pension accrual. The arrangement distorts the labour market and shifts fiscal burdens onto the state. For these reasons, Dutch authorities have moved decisively to address the issue. 

The Legal Framework 

The Wet DBA  

The primary legislation governing this area is the Wet Deregulering Beoordeling Arbeidsrelaties (commonly known as the DBA Act) which came into force on the 1^st of May 2016. It replaced the earlier VAR (Verklaring Arbeidsrelatie) system, under which self-employed workers could obtain a declaration of their employment status that offered a degree of certainty to both parties. 

The DBA Act places the responsibility for assessing the nature of a working relationship squarely on both the client and the contractor. Neither party can rely solely on a written contract. What matters is the reality of how the work is carried out. 

As of 2025, a new approach of DBA emphasizes guidance and warnings before penalties, with deliberate enforcement of fines expected from 2027 onward, following a further extension approved by the Dutch parliament in late 2025. 

The VBAR Proposal  

In July 2025, the Minister of Social Affairs and Employment submitted the Wet Verduidelijking Beoordeling Arbeidsrelaties en Rechtsvermoeden (VBAR) to parliament. This bill introduces two core elements for assessing employment status: the degree of work-related or organisational control (W) and the degree to which work is carried out at the contractor's own risk and expense (Z). If W outweighs Z, an employment relationship is presumed; if Z outweighs W, genuine self-employment is indicated. 

The VBAR also introduces a legal presumption of employment for contractors earning below approximately €38 per hour, placing the burden on the client to prove otherwise. As of early 2026, the coalition agreement had indicated that the VBAR would be partially replaced by a new Zelfstandigenwet (Self-Employment Act). If the VBAR is approved in its current form, it is expected to take effect on the 1^st of July 2026. 

Until new legislation comes into force, the DBA Act remains the governing framework. 

How Employment Relationships Are Assessed 

Under the DBA Act and the body of case law that has developed around it, tax authorities examine a range of factors when determining whether a working relationship constitutes employment: 

Indicators of employment: 

• The client exercises authority over how, when, and where the work is performed;
   
• The contractor works exclusively or predominantly for one client; 
   
• The contractor uses the client's materials, tools, and systems; 
   
• The work is structurally embedded in the client's core business operations (the so-called integration criterion); 
   
• The contractor bears no financial risk and sets no independent rates. 

Indicators of genuine self-employment: 

• The contractor works for multiple clients and actively acquires new assignments; 
   
• The contractor sets their own rates and negotiates terms independently; 
   
• The contractor bears the risk of loss and is financially liable for shortcomings; 
   
• The contractor has their own branding, professional infrastructure, and insurance; 
   
• The contractor makes their own arrangements for pension and incapacity cover. 

No single factor is decisive. The Tax Administration takes a holistic view of the actual working relationship, not merely the contents of a signed contract. 

Consequences of False Self-Employment 

The stakes for both parties are considerable. 

For the client (hiring organisation): 

• Obligation to pay backdated payroll taxes and social security contributions, retroactive to the 1^st of January 2025 (and further back in cases of deliberate non-compliance); 
   
• Administrative fines for failure to address identified false self-employment;
   
• Reputational and operational disruption, including the potential reclassification of an entire category of contractor engagements. 

For the contractor: 

• Loss of tax advantages associated with self-employed status; 
   
• Reclassification as an employee, triggering entitlement to employment protections — but also obligations the contractor may not have anticipated; 
   
• Possible repayment of tax benefits previously claimed. 

Enforcement is being applied in a phased and sector-focused manner, with construction, healthcare, and the gig economy among the areas subject to heightened scrutiny. Organisations found to be taking concrete steps toward compliance in 2025 and 2026 benefit from a more lenient approach; those found to be deliberately circumventing the rules face the full range of consequences. 

How to Prevent False-Employment 

Both clients and contractors have a shared legal responsibility to ensure their relationship is correctly classified. The following measures are essential. 

• Assess the working relationship before engagement. The Ministry of Social Affairs and Employment offers an online employment relationship evaluation tool (Webmodule Beoordeling Arbeidsrelatie, or WBA) that provides an initial indication of whether a planned engagement qualifies as self-employment. While not legally binding, it is a valuable starting point. 
   
• Ensure that contracts reflect reality. A services agreement (overeenkomst van opdracht) that does not reflect how the work is actually performed offers no protection. Pay particular attention to provisions on authority, substitution rights, and the contractor's financial independence. 
   
• Avoid structural dependency. Long-term, exclusive arrangements in which the contractor functions as an integrated member of the client's organisation carry significant risk of reclassification. Where possible, engagements should be project-based, time-limited, and open to parallel work with other clients. 
   
• Apply a minimum hourly rate. Maintaining a rate above the VBAR's anticipated threshold of €38 per hour reduces exposure to the presumption of employment that the new legislation would introduce. 
   
• Build and maintain a compliance dossier. The Tax Administration has indicated that organisations able to demonstrate active steps toward compliance will receive more favourable treatment. Document the assessment process, the contractual arrangements, and any corrective measures taken.
   
• Seek professional advice when in doubt. The legal distinction between employment and self-employment is not always obvious, and the consequences of misclassification are significant. Specialist legal or tax advice is particularly valuable for complex or long-term engagements, cross-border arrangements, or when working in sectors that are the focus of enforcement activity. 

False self-employment is no longer a peripheral compliance concern in the Netherlands. With active enforcement underway and new legislation on the horizon, both businesses and independent contractors are required to approach their working relationships with greater care and transparency. The DBA Act framework demands that the substance of a working arrangement, not merely its label, determines how it is taxed and regulated. 

For organisations with existing freelancer arrangements, now is the time to review, document, and where necessary to restructure those relationships. For contractors, ensuring genuine entrepreneurial independence is not only good practice — it is a legal necessity. 

Want to find out more about false self-employment and how to prevent it? Feel free to contact us!