The government is working on a minimum rate for all self-employed people in the Netherlands; self-employed should earn no less than 16 euros per hour. The rule is part of the replacement of the DBA Act and is intended to protect employees against false self-employment. However, there are many questions about the opt-out, “non-regular business activities” and the total web module.
A web module that was deemed to be part of the replacement of the DBA Act is being postponed. The planned date of January 1, 2020, will not be met because it seemed rather complex due to the extra time needed for customer feedback processing.
A lot of criticism has been delivered from the professional field on the proposed web module. Minister Koolmees makes it clear, however, that an amendment to labour law is not possible in the short term.
Moratorium expansion extended
The current moratorium on the DBA enforcement law will be extended by 1 year from the originally mentioned date – until 1 January 2021. Legislation regarding the minimum rate must also be ready by that date.
However, the Tax Authorities and the Social Affairs and Employment Inspectorate are not standing still. From January 1, 2020, the tax authorities can also extort employers who do not adjust their working methods within a reasonable time to the instructions of the tax authorities. The extra capacity will be released to oversee this “extortion” procedure.
Opt-out level: maximum allocation of 1 year
For self-employed persons with a rate of more than 75 euros, it is possible to request a self-employed person’s statement/declaration. This enables them to agree with the client in advance that they will already start working independently.
A client and the contractor do not run the risk of additional taxes such as payroll tax if they meet the following requirements: (1) There is a statement from a self-employed person (only applicable to assignments that last no longer than one year); (2) There is a registration with the Chamber of Commerce.
Self-employed persons with the declaration need certainty about the consequences of (un)employment, building pension and collective labour agreement provisions. The government believes it is necessary to provide these self-employed persons and their clients with as much clarity as possible.
A period of six months between successive assignments with the same customer
The declaration of self-employed persons is subject to a maximum period of 1 year, even when it concerns “non-regular business activities”. The declaration expires after a year and that also applies to security. The Cabinet chooses to no longer use the ‘regular business activities’ as a criterion because of the discussions it will create. This would, in turn, lead to more uncertainty and less clarity. These rules must also apply from 2021.