The DBA Act has caused much controversy among self-employed workers and clients. This law, intended to combat false self-employment, imposes new requirements on the working relationship between self-employed persons and their principals. But what does this mean in practice for self-employed workers and clients? And how does this law affect the broader labor market?

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

The DBA Act, or the Deregulation of Employment Relationship Assessment Act, is having a major impact on the self-employed without personnel (zzp’ers) in the Netherlands. The purpose of the law is to reduce false self-employment and ensure clear agreements between zzp’ers and their clients. This has both advantages and disadvantages for zzp’ers.

An important advantage is that the law provides more clarity about the legal position of self-employed workers. By entering into clear contracts, zzp’ers can better safeguard their independence. However, the downside is that self-employed workers may face more red tape and stricter tax obligations. This may put pressure on the flexibility many seek in being self-employed.

What are the implications for principals?

For clients, the DBA Act also brings changes. They are now jointly responsible for determining whether an employment relationship exists. This means they must be more careful when entering into contracts with zzp’ers. Failure to comply with the rules can lead to additional taxes and potentially high fines.

In addition, costs may increase for clients. It is important that they prepare properly for the new responsibilities and risks this law entails. Thorough contract formation and a clear separation between employees and freelancers within the company are essential to avoid risks.

What changes can be expected in the labor market?

The introduction of the DBA Act may lead to shifts in the labor market. We expect that there may be a greater demand for permanent employment as the rules around hiring self-employed workers become stricter. Companies that previously worked a lot with zzp’ers may have to revise their strategies.

Employees and companies will have to adapt to these changes. For example, companies may need to revise their internal processes and HR policies to meet the new requirements. At the same time, employees must be aware of changing market dynamics and respond to them by, for example, continuing to develop their skills.

How does the DBA Act compare with other labor laws?

The DBA Act does not stand alone; it is important to see it in the context of other labor laws, such as the Occupational Health and Safety Act and the Work and Security Act. Whereas the DBA Act focuses on the relationship between self-employed workers and clients, the Occupational Health and Safety Act focuses on working conditions and safety in the workplace. The Work and Security Act revolves around the protection of employee rights in the event of dismissal and unemployment.

While there are differences, there is also overlap. For example, rules from the DBA Act may affect compliance with the Occupational Health and Safety Act, as self-employed workers are also entitled to a safe working environment under certain circumstances. It is important for companies to comply not only with the DBA Act, but also with other relevant legislation.

What strategies can companies implement to be compliant?

To be compliant with the DBA Act, companies can implement several strategies. An important step is to draw up clear contracts that emphasize the self-employed person’s independence. Avoiding a relationship of authority is crucial here; the zzpp’er must decide how to perform the work.

Companies can also adjust internal policies to prevent false self-employment. This can be done, for example, by not giving freelancers the same tasks or responsibilities as permanent employees and keeping them out of regular team meetings. It is helpful to learn from best practices and successful examples of other companies that are already compliant with the law.

While the DBA Act presents challenges, it also offers opportunities for companies and self-employed workers to professionalize their collaboration. By taking the right steps and staying well informed, both clients and self-employed workers can successfully navigate the changing labor market. Read more about this in our white paper.

At WerfSelect, we are experienced in helping companies and self-employed individuals become compliant with the DBA Act. We understand the challenges and offer support in finding the right balance between flexibility and compliance. Together we can make sure you have the right people in the right place, without hassle.