Just before the end of 2024, the Dutch government released the definitive Enforcement Plan for Employment Relations 2025. This plan builds on the Tax Authority's previous approach to addressing false self-employment while also clearing up common misconceptions in the market.
Here’s a summary of the key takeaways, backed by concrete quotes from the Tax Authority’s enforcement plan:
Independent Contractors can continue operating on the Dutch labor market
The government has confirmed that collaboration with independent contractors will remain possible in 2025, provided it complies with applicable laws and regulations.
"The government aims to safeguard the freedom of individuals to shape their working lives. Working as an independent contractor is and will remain possible, as long as it adheres to legal requirements." (Source: Tax Authority)
To help organisations correctly classify employment relationships, we’ve developed practical documentation and templates. By using these, you can proactively manage classification and demonstrate compliance during a potential Tax Authority visit. Consult these here.
Soft landing: Warnings before strict enforcement
In line with a parliamentary motion, the Tax Authority will issue warnings before taking intensive enforcement actions. As explained by the Tax Authority:
"In 2025, we will generally start with a business visit, where we will engage with the client about the hiring of independent contractors and external personnel. During this visit, we will highlight the need to pay attention to the classification of employment relationships and the potential risks of false self-employment." (Source: Tax Authority)
This coaching-first approach provides organisations the opportunity to make improvements before stricter measures are taken.
To help you properly classify employment relationships, we have developed useful tools and templates based on the Tax Authority's guidelines.
Read more about the Tax Authority's risk-based enforcement approach here.
No fines for misclassification errors
The Tax Authority has also clarified that no administrative fines will be imposed for misclassifying employment relationships:
"In 2025, we will not impose fines for the misclassification of employment relationships." (Source: Tax Authority)
This offers reassurance to organisations who actively take steps to comply with the rules.
Employee or independent contractor: a holistic assessment
The Tax Authority reiterates in their Explanation of Employment Relations Assessment that a single factor cannot determine whether someone is an employee or an independent contractor. Instead, all facts and circumstances must be considered in context—a method known as the "holistic assessment."
"When determining whether there is an employment contract, all facts and circumstances are relevant. These must be assessed in conjunction. No single fact or circumstance is decisive: everything must be considered together. This is known as the holistic assessment."
This approach ensures a thorough and balanced evaluation of the employment relationship.
Summary
Here’s what the Enforcement Plan for Employment Relations 2025 means for you:
- You can continue working with independent contractors in 2025.
- It’s crucial to have clear policies in place to ensure compliance.
- Employment relationships will be assessed holistically, following principles applied in the Deliveroo case.
- The Tax Authority will initially adopt a coaching approach, starting with business visits rather than immediate corrective measures.
Want to read the full Tax Authority report? Check it out here.
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