Joost van Ladesteijn's blog "The 5 Biggest Misconceptions About Bogus Self-Employment" was one of the most-read articles on CHRO. In the article, he explains how the changes effective January 1, 2025, are often misunderstood. The article is available for review below:
Bogus Self-Employment in Five Misconceptions – and Why the VBAR Act Is a Misguided Plan
With the Proposed Act for Clarification on the Assessment of Employment Relationships and the Presumption of Employment (VBAR), the government aims to combat bogus self-employment. Mr. Joost van Ladesteijn highlights five major misconceptions about bogus self-employment to set expectations straight.
The market is in turmoil. On January 1, 2025, the enforcement moratorium will end. So-called ZZP "specialists" (self-employed without employees) are popping up like mushrooms. Communication from the government is inadequate unless the intent is to push ZZP workers into employment contracts.
Supposedly independent experts dominate the media without disclosing their conflicts of interest. This article aims to debunk five significant misconceptions about bogus self-employment.
Misconception 1: 100% compliant self-employment contracts exist
The most meticulously crafted contract does not guarantee it won't be reclassified as an employment agreement upon review. Actual implementation is equally critical. Labor law prioritizes substance over form. Essence outweighs appearances.
Misconception 2: The tax authorities will resume enforcing the DBA Act as of January 1, 2025
In 2016, the DBA Act only abolished the VAR system. Tax assessments for employment relationships align with the labor law test under Article 7:610 of the Dutch Civil Code (BW). This involves a holistic evaluation of all circumstances.
Misconception 3: Organizational integration is a decisive factor in determining employment relationships
In the Deliveroo case, the Dutch Supreme Court ruled that organizational integration is not decisive, contrary to the opinion of Advocate General De Bock. Under the VBAR proposal, organizational integration is a specific indicator for employment, but the proposal has faced substantial criticism and is unlikely to take effect before January 1, 2026.
Misconception 4: The labor law test is unclear and overly complex
Law is not an exact science. Judges effectively use holistic evaluations. The moratorium only partially suspended tax enforcement, while the labor law test—over a century old—remains in effect.
Misconception 5: Most ZZP workers are forced into self-employment and do not benefit from prosperity
The opposite is true: about 90% of all ZZP workers choose self-employment voluntarily. Research indicates that these workers often fare better than employees across various measures of well-being.
By focusing on influencing behavior instead of quality, a perceived issue has become a significant challenge. The "earning capacity" of the Netherlands is at risk. A swift return to fiscal enforcement and withdrawal of the VBAR Act would restore stability and predictability.
