What is the DBA Act and why is it important?
The DBA Act, or Deregulation of Assessment of Labor Relations, was created to combat false self-employment. This law is relevant to both the self-employed without personnel (zzp’ers) and clients. The goal is to ensure that there are no hidden employments, where someone is hired as a self-employed person but actually functions as an employee. This can lead to legal and financial problems, such as fines and back taxes from the Tax Office.
It is important for zzp’ers to be aware of the DBA Act so that they are not unknowingly considered employees. Clients must also comply with the law to avoid being held responsible for paying back taxes and contributions. Understanding this law helps both parties set up and maintain their employment relationships correctly.
How do I draft a correct model agreement?
A model agreement is a useful tool to clarify the employment relationship between a self-employed worker and a client. It helps establish the expectations of both parties and ensure compliance with the DBA Act. But what does a correct model agreement look like?
Important elements of a model agreement include the description of the work, the degree of independence of the self-employed worker, and the agreements regarding payment and duration of the assignment. It is essential that the freelancer has the freedom to determine how he or she performs the assignment. This reduces the chances of false self-employment. Make sure that the agreement is not only correct on paper, but also observed in practice.
What are the principal’s responsibilities?
As a client, you must follow some guidelines to comply with the DBA Act. It is your responsibility to check whether there is a relationship of authority and whether the freelancer has sufficient independence in performing the assignment. This means that you may not give detailed instructions about the working method and that the zzp’er does not have to be fully integrated into your organization.
It is also important to put all agreements in writing and regularly evaluate whether the employment relationship is still in line with the DBA Act. By taking these responsibilities seriously, you reduce the chance of legal problems and ensure a healthy cooperation with self-employed persons without personnel.
How do I prevent false self-employment?
False independence can lead to unpleasant consequences, so it is important to be proactive about it. For zzp’ers, this means keeping a close eye on your independence. Make sure you have multiple clients and are not too dependent on a single client. In addition, you must be able to make it clear that you are in control of how you perform your work.
Clients can prevent false self-employment by respecting the self-employed worker’s independence and not taking on the role of employer. This means, for example, not including the zzp’er in team meetings or other activities intended for permanent employees. By maintaining this separation, you avoid inadvertently creating an employment relationship.
What are the consequences of not complying with the DBA Act?
If you fail to comply with the DBA Act, the financial consequences can be significant. Both the client and the zzpp’er may face additional taxes and fines. Extra levies mean that you have to pay payroll tax and social security contributions retroactively for the period in which the contractor worked for you. This can be a significant financial burden.
From 2025, misdemeanor fines can also be imposed, which can amount to 50% of the unpaid amount. So it’s important to make sure your employment relationships are in line with the law to avoid these risks. By being well informed and taking the right steps, you can avoid the consequences of non-compliance.
It is critical to prepare well for the DBA Act and understand its implications. Whether you are a zzp’er or client, by being aware of the rules and guidelines you can prevent false self-employment. If you have any questions or need help drafting a model agreement, you can always contact us. We will be happy to help you set up your labor relations correctly and compliantly. Read more about this in our white paper.
