The DBA Act remains a topic of discussion in the Dutch zzp market. Why was this law introduced and what does it mean for the self-employed and clients? In this blog post, we dive deeper into the impact of the DBA Act, the negotiating position of self-employed workers and the alternatives on the table. Let’s start with the background and goals of the DBA Act.

What is the DBA Act and why was it introduced?

The DBA Act, or Deregulation of Assessment of Employment Relationships, was introduced to address false self-employment. This phenomenon occurs when a working relationship is formally presented as self-employment, while in reality it has characteristics of employment. The law is designed to clarify when someone is an employee or self-employed.

One of the main reasons for the introduction of this law was to protect the social security system. Sham self-employment reduces social security benefits for self-employed workers and reduces tax revenues for the government. This directly affects services such as health care. The Tax Administration plays a crucial role in enforcing this law, which will have stricter rules starting in 2025.

How does the DBA Act affect the negotiating position of self-employed workers?

The DBA Act affects how self-employed workers can negotiate their rates and terms with clients. On the one hand, the law provides more clarity about what self-employment entails, but on the other hand, it may limit self-employed workers in their freedom to negotiate. There is a risk that clients may become more cautious in their collaborations, for fear of legal consequences.

This may lead to higher administrative burdens for self-employed workers, who must prove that their working relationship does not qualify as employment. At the same time, the law may cause rates to come under pressure because clients may want to take lower risks. So it is important for self-employed workers to be well informed about their rights and obligations under the DBA Act.

How does the DBA Act affect clients?

For companies that hire zzp’ers, the DBA Act also brings a number of challenges. The law places a greater administrative burden on clients, who must now prove that the zzp’er actually works independently. This means that more contracts must be recorded and more supervision may be required to comply with the law.

In addition, legal risks can arise if a working relationship is subsequently classified as employment. This can lead to additional taxes and fines from the Tax Office. It is therefore important that clients obtain proper information and advice in order to comply with the requirements of the DBA Act.

How is the zzp market responding to the enforcement of the DBA Act?

Reactions to the enforcement of the DBA Act have been mixed. Many self-employed workers and clients are trying to adjust to the new reality by reevaluating their contracts and working relationships. This has led to shifts in the market, with some self-employed workers opting for more security by joining payroll companies.

There are also self-employed workers who focus even more on demonstrating their independence by working for multiple clients and making their entrepreneurial risks clear. It is a period of adjustment as both self-employed workers and clients try to find their way through the new legislation.

What are the alternatives to the DBA Act?

Several alternatives have been proposed to improve or replace the DBA law. One option is to introduce a minimum rate for self-employed workers, which could increase their income security. This proposal is currently being considered by the Cabinet and could play a role in the zzp market in the future.

Another possibility is to amend current legislation to provide more flexibility for working relationships that do not clearly fall into a category. These alternatives all have their advantages and disadvantages, and it is important to carefully evaluate their impact on the self-employed market before making any decisions.

At WerfSelect, we understand how important it is to be well informed about the DBA Act and its impact on your working relationships. Whether you are a freelancer or a client, we are ready to support you with our expertise and personalized services. Together we ensure that the right talents get the right opportunities. Read more about this in our whitepaper.