The Wet DBA (Deregulering Beoordeling Arbeidsrelaties) aims to prevent false self-employment and create clarity in the employment relationship between clients and self-employed persons without personnel (ZZP’ers). But what happens if you don’t comply with this law? How does it affect the collaboration between client and ZZP’er? And what role does enforcement play in this? Let’s take a closer look at these questions.
What are the immediate consequences of not complying with the DBA Act?
Failure to comply with the DBA Act can have both legal and financial consequences for both clients and self-employed persons without personnel. If an employment relationship is mistakenly classified as self-employment, this can lead to additional levies of payroll taxes and social contributions. The Tax Office may decide that there was an employment relationship, which means that the client still has to pay employer contributions.
For the ZZP’er, failure to comply with the DBA Act may mean that they are no longer considered self-employed, but an employee. This may affect their tax benefits, such as self-employment deductions and SME profit exemptions. In addition, there may be reputational damage, which could jeopardize future assignments.
How does the DBA Act affect the relationship between client and ZZP’er?
The DBA Act changes the dynamic between client and ZZP’er by requiring more clarity and responsibility in the contractual arrangements. Both parties must determine together whether there is employment or not. This may mean that clients need to pay more attention to how they establish and manage working relationships to avoid inadvertently creating an employment relationship.
For ZZP’ers, it is important that they can clearly demonstrate their independence. This means, for example, that they themselves determine how they perform their work and are not embedded in the client’s organization. This can affect the freedom of self-employment, but also offers protection against false self-employment.
What role does enforcement play in the DBA Act?
Enforcement plays a crucial role in the effectiveness of the DBA Act. The Internal Revenue Service is responsible for monitoring compliance with the law. Although enforcement has been delayed in recent years, more intensive control is planned from 2025. This means that the nature of employment relationships and whether they are in line with the law will be examined more strictly.
Intensive enforcement may lead to more lawsuits and legal precedents, such as the Deliveroo ruling, which determined that meal delivery workers were actually employees despite working as ZZPs. These types of rulings may force clients to adjust their practices to comply with the law.
What are the possible solutions for compliance with the DBA Act?
There are several strategies that clients and ZZPs can implement to comply with the DBA Act. First, it is important to use clear and transparent contracts that emphasize the self-employment of the ZZP’er. These should clearly state that the ZZP’er works independently and is not under the authority of the client.
In addition, companies may choose to evaluate and, if necessary, restructure their work processes to ensure that ZZPs are not a replaceable part of their organization. It is also helpful to seek regular legal advice to ensure that all agreements and practices comply with current laws. By taking these steps, both clients and ZZPs can minimize the risks of false self-employment.
It is important to understand that the DBA Act is not just an administrative burden, but an opportunity to shape labor relations in a fair and transparent way. By working together and ensuring compliance, we can create a more balanced and equitable labor market. Should you have questions or need help navigating this legislation, we at WerfSelect are here to support you. Read more about it in our whitepaper.
