A recent article by the Staffing Industry Analysts (SIA) has highlighted that over a third of self-employed individuals in the Netherlands have voiced their concerns regarding the impending implementation by the Dutch Tax Authority of the "Deregulation Assessment of Employment Relationships Act". The findings come from a survey conducted by the banking organisation Knabb, which found that 36% of respondents highlighted their concerns regarding the upcoming enforcement of the act. Knabb is a banking organisation whose offerings include specified services and products for independent contractors and freelance professionals, or ZZP'ers, as referred to in the Netherlands.
When does this act come into effect?
The upcoming Deregulation Assessment of Employment Relationships Act is expected to come into enforcement from 1st January 2025 and is designed to tackle cases of false self-employment.
What were the key findings of the research?
Knabb has made several key findings in their survey of 3,000 self-employed individuals. These findings are as follows:
- The study revealed that of those surveyed, 13% of freelancer professionals anticipate incorrectly being classified as self-employed. Of this 13%, most respondents originate from government sectors, at 28%, followed by IT and media/communications sectors, at 21% each.
- Among all respondents, only 29% said they would consider traditional employment as an employee of an organisation.
- The study also found that a quarter of respondents considered retiring early if government legislation negatively interferes with or ceases their business activities.
- Despite the above concerns, 49% of self-employed individuals remain optimistic about the future of freelancing in the Netherlands.
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Future outlook:
Despite nearly half of Knabb's survey respondents stating their optimism for the future of freelancing and contract work in the Netherlands, Knabb's CEO Nadine Klokke highlights that one should be cautious as this outlook could change rapidly. In a recent press release, Klokke stated
"The sentiment among freelancers could worsen if the government continues to combat false self-employment with ambiguous and ever-changing rules." In the same press release, the Knabb CEO highlighted the need for stable government policies and transparent regulations, allowing genuine freelancers to thrive without unnecessary barriers, also underlining that the opportunity may present itself in this instance to the Dutch Minister of Social Affairs and Employment, as the replacement for this DBA Act is currently in preparation and is anticipated to be implemented from 2026.
In conclusion:
The world of freelancing and contract work is ever-changing, and those working in this space must stay informed about changes that may affect them or their clients. Regarding the changing legislation in the Netherlands, our team at 3C Global strives to ensure comprehensive compliance with all relevant legislation so that our clients can have peace of mind. Please do not hesitate to contact us today to get started in the Netherlands!
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