No fines for false self-employment next year

Employers who use self-employed workers for jobs that should actually be carried out under employment conditions will not be fined next year. They must prove that they are taking "measures" against false self-employment.

From January 1, the tax authorities will once again take full action against false self-employment. This is intended to give employees more security and prevent fake self-employment. The law, intended to end this abuse of the labor market, already came into force in 2016, but so far, action has only been taken in cases of obvious abuse.

"Self-employed entrepreneurs in the Netherlands make an important contribution to our economy," emphasizes State Secretary Folkert Idsinga (Finance). "And that remains the case. However, using false self-employed workers leads to unfair competition and unequal working conditions. The cabinet wants to restore this balance on the labor market."

Idsinga also acknowledges, however, that the prospect of full enforcement is causing a lot of unrest among self-employed people and clients. He also sees that many companies are busy with preparations and that these adjustments "ask a lot of them." That is why there will be a one-year transitional period during which clients will not be fined if they can demonstrate that they are acting in good faith.

The number of self-employed people in the Netherlands has increased significantly over the last few years. The Dutch Chamber of Commerce (KvK) reported earlier this year that their number has risen by 85 percent in 10 years. There were around 875,000 self-employed people in the Netherlands in 2014, and there are currently more than 1.6 million.