Legislation governing position of sole traders being revamped

The government is continuing to grapple with the position of sole traders both fiscally and from a labour law perspective, the legislator’s ultimate goal being that entrepreneurs should be given enough leeway to run their business at their discretion while checking the operation of inappropriate business structures in violation of labour law at the same time, as a combined object which, experience has borne out, poses quite a challenge.

The Assessment of Employment Relationships (Deregulation) Act of the Netherlands (in Dutch: “DBA”) has been rendered inoperative until the first of January 2020 whereas the Tax and Customs Administration’s enforcement efforts have been stepped up since the first of July, as per the announcement made in February of this year, from focusing on just the worst of the offenders to targeting the entire community of non-compliers.

The plans that are currently being worked up hinge on protection based on a minimum hourly rate for sole traders coupled with the presumption of an employment relationship where cheap hourly rates are charged. An extensive consultation round is to be held before the current year is out, the government’s aim being to present its detailed proposals before the start of the new year.

Dutch version: Nieuwe wetgeving positie zelfstandigen zonder personeel