The Wet DBA is a hot topic among freelancers and zzp’ers in the Netherlands. It is important to understand how this law affects your working relationship with clients. In this article, we dive into the details of the Wet DBA and how it affects your self-employment.
What is the DBA Act and why was it introduced?
The Deregulation of Assessment of Labor Relations Act (DBA) replaces the former VAR declaration and was created to combat false self-employment. Why? Because it was often unclear whether there was employment or self-employment. This law provides clarity on what the employment relationship between clients and zzp’ers looks like.
With the DBA Act, both the client and the zzp’er must determine together whether an employment relationship exists. This means that as a self-employed person, you cannot simply take on jobs without checking whether you are actually self-employed and not an employee. This prevents clients from wrongfully evading the obligations of employment.
How does the DBA Act affect freelancers and zzp’ers?
For freelancers and zzp’ers, the DBA Act brings new responsibilities. Where previously you could show a VAR declaration to prove your independence, you must now agree with the client what your working relationship looks like. This makes you responsible for the agreements you make.
The impact is that as a self-employed person, you need to think more about how you offer your services and how you work with clients. It requires you to communicate clearly about your self-employment and the nature of your work so that there are no misunderstandings that could lead to false self-employment.
What are the implications for principals?
Clients need to be aware of their obligations under the DBA Act. They can no longer simply hire freelancers without evaluating the employment relationship. This means that they run the risk of tax assessments if it turns out that an employment relationship does exist.
In addition, clients must properly record how the cooperation with self-employed workers is set up, and be alert to signs of false self-employment. One way to do this is to ensure that the self-employed worker works independently and does not perform the same tasks as a permanent employee.
What are the exceptions or special situations?
There are specific situations where the DBA Act can be applied differently. This may occur in certain sectors where the nature of the work calls for more flexible working relationships. There are also exceptions for situations where there is a clear separation between the work of the self-employed person and that of permanent employees.
It is important to note that these exceptions often depend on the specific circumstances, and as a self-employed worker or client, you have the responsibility to assess for yourself whether your situation falls under an exception.
What are the future prospects of the DBA Act?
The future of the DBA Act appears to be focused on further clarifying and tightening the rules. There are plans to lift the enforcement moratorium, meaning that the Tax Office will be more rigorous in enforcing the law. This could lead to more supervision and possibly more penalties for clients who fail to comply.
It is also looking at ways to improve the law so that it better reflects the changing labor market. This may mean more guidelines in the future that are specifically tailored to new forms of work and the needs of both self-employed workers and clients.
By properly understanding and applying the DBA Act, both freelancers and clients can benefit from clear agreements and a fair working relationship. At WerfSelect, we are happy to help you with advice on how to apply the DBA Act in your situation. Read more about this in our white paper.
