The Deregulation of Assessment of Labor Relations Act, better known as the DBA Act, has caused much controversy since its introduction. This law is there to address false self-employment and restore balance in the labor market. But what exactly does this law entail and what does it mean for you as a self-employed person or client? We take you into the world of the Wet DBA.

What is the DBA Act and why was it introduced?

The DBA Act was created to replace the Declaration of Employment Relationship (VAR). The VAR declaration was a document that self-employed people used to prove that they were not employees. However, in practice, this system proved to be susceptible to fraud and led to many cases of false self-employment. With the DBA Act, the government wanted to get a better grip on labor relations by looking at the actual situation rather than just paper agreements.

With the DBA Act, the government aims for more clarity and certainty for both self-employed workers and clients. By focusing on the actual employment relationship, abuses such as false self-employment can be addressed. This is important because it not only affects the tax authorities, but also social security and labor rights.

How does the DBA Act affect self-employed workers and clients?

For the self-employed, the DBA Act means that they must pay close attention to how their employment relationship with clients is designed. It is important to ensure that there is no relationship of authority or embeddedness in the client’s company. Self-employed workers must perform their work in such a way that it is clear that they are not under the management and supervision of the client.

Clients, on the other hand, must think carefully about how they use self-employed workers. They are responsible for assessing the employment relationship and must take measures to prevent false self-employment. This means that they do not give instructions on how the work should be performed and that the self-employed person actually operates independently.

What are the possible consequences for not complying with the DBA Act?

Failure to comply with the DBA Act may expose both self-employed workers and clients to legal and financial consequences. The tax authorities can impose additional levies for unpaid payroll taxes and social security contributions. This can mean considerable financial pressure for both parties. Fines of up to 50% of the amount due may also follow.

In addition, failure to comply with the DBA Act can result in reputational damage for both self-employed workers and clients. Therefore, it is important to know and understand the rules well so that you do not encounter any surprises.

How can self-employed workers and clients prepare for the DBA Act?

For the self-employed, it is helpful to establish clear agreements that properly define self-employment. It helps to ensure that, as a self-employed person, you determine your own working hours and working methods. It is also smart not to integrate yourself too much into the client’s organization.

Clients can prepare themselves by making good agreements and documenting them. It is important not only to have the paper agreements in order, but also to properly organize the actual implementation of the employment relationship. Ensure that self-employed workers are separate from permanent staff and that no relationship of authority arises.

What are the recent developments and future expectations of the DBA Act?

Recently, there have been many discussions about the enforcement of the DBA Act. In 2025, the enforcement moratorium will be lifted, meaning that the tax authorities will again actively monitor and enforce it. There are also other initiatives such as the Verduidelijking Beoordeling Arbeidsrelaties (VBAR) Act that could potentially replace the DBA Act, but these have still received much criticism.

The future expectation is that there will be more clarity and enforcement to combat false self-employment. This means that the self-employed and clients must be even better prepared for their mutual working relationships. Stay on top of developments and make sure you are well informed so that you are not confronted with surprises. Read more about this in our white paper.

At WerfSelect, we know how important it is to be well informed about this legislation. We are ready to help you with advice and support so that your labor relations are always within the established frameworks.