A guide to the DBA law for employers

The DBA (Deregulering Beoordeling Arbeidsrelaties) law was introduced on May 1, 2016, to replace the VAR (Verklaring Arbeidsrelatie). Its goal is to differentiate between genuine self-employment and disguised employment (schijnzelfstandigheid), where individuals and employers sidestep taxes and social security contributions by misclassifying employment relationships as freelance work.

Background

Under the DBA law, employers share responsibility with self-employed workers for ensuring their working arrangements comply with legal requirements. Contracts must clearly define the nature of the relationship, demonstrating that the worker operates independently and is not an employee. Misclassification carries serious consequences, including significant financial penalties, making compliance a top priority for employers.

With the Dutch Tax Authority (Belastingdienst) set to enforce rules against false self-employment in 2025, how can employers prepare? In this article, Kevin Thomassen, Managing Director of IQ Staffing, examines the potential consequences for employers and explores practical solutions.

Stricter enforcement as of 2025

An enforcement moratorium applied until January 2025. This meant that in cases of false self-employment, the Belastingdienst could issue an instruction to employers, but not an additional tax assessment or fine. With effect from 1 January 2025, that enforcement moratorium no longer applies. This means that the Dutch tax authorities will fully enforce DBA law regulations. They will use a detailed Enforcement Plan (Handhavingsplan) to assess working relationships.

This shift will hold employers accountable for misclassification. Enforcement will be stricter, with a focus on fairness in the labor market and proper tax contributions.

Also read: DBA law in the Netherlands – What self-employed professionals need to know

Examples of compliant and non-compliant scenarios

Non-compliant (false self-employment): A contractor working exclusively for one client, using the client’s tools, and adhering to their schedule and supervision.
Compliant (true self-employment): A contractor managing multiple clients, setting their own hours, using personal equipment, and maintaining a distinct business identity.

Best practices for employers

The upcoming enforcement of the DBA law highlights the importance of strategic workforce planning. To comply with the DBA law and minimize the risks of fines and reputational damage, employers have three options:

1. Keep working with freelancers

Employers who wish to maintain a flexible shell can continue to work with freelancers under the DBA. In this case, it is critical to:

Reassess and diversify all contractor relationships: Avoid working exclusively with a single contractor for an extended period. Encourage contractors to work for multiple clients.
Ensure robust contracts: Draft contracts that clearly outline the independence of the contractor, including control over their schedule, tools, and resources. The use of existing ‘Modelovereenkomsten’ (model agreements) can help ensure compliance.
Assess and adjust working conditions: Avoid exerting control over self-employed workers, such as requiring fixed hours or supervision, which can mimic employment.
Consult legal experts: Engage labor law specialists to review contracts and working conditions regularly to ensure compliance with evolving regulations.

2. Consider employer-employee alternatives

Self-employed professionals working primarily for a single client are likely to move into permanent employment by 2025. For employers, this is a prime opportunity to attract top talent. If you’re looking for stability and long-term commitment, hiring permanent staff is a smart choice. Our sister company, IQ Search, specializes in finding the right permanent staff and can also provide expert advice on building a strong, well-balanced team.

Get to know IQ Search

3. Flexible staffing solutions as alternative to freelancers

For roles where self-employment may not comply with DBA law, employers can consider alternative arrangements like hiring on a temporary basis through payroll or staffing solutions. Here, professionals are employed through a third party, offering a safe solution.

At IQ Staffing, we specialize in tailored staffing solutions to help businesses overcome these challenges. Our employment services enable you to hire skilled IT professionals under fully compliant contracts, giving you access to the flexibility and expertise typically associated with freelancers—without the legal risks.

We are happy to tell you more about the possibilities. Get in touch with us to learn how we can help protect your business while ensuring access to top-tier talent in a compliant and efficient way.

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