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Tuesday, 11 February 2025 - 06:30

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Decline in freelancers in the Netherlands signals trend break

The number of self-employed workers (zzp'ers) in the Netherlands continues to decline, with over 4,000 fewer freelancers registered in January 2025 compared to the previous month, according to the Kamer van Koophandel (Chamber of Commerce).

The drop was expected, as the Dutch government has begun enforcing a ban on the use of "false self-employed" workers, or "schijnzelfstandigen," in companies and organizations. These workers are officially self-employed but, in practice, perform similar tasks to regular employees. Companies using false self-employed workers risk fines from the Dutch Tax Authority, which has yet to impose penalties but may retroactively charge taxes and premiums.

In previous years, the number of freelancers in the Netherlands grew by more than 1,000 per month. The recent drop of 2,000 freelancers marks a clear shift, according to Joris Knoben, a professor of entrepreneurship at Tilburg School of Economics and Management. "It is truly a trend break," he said.

One major organization affected by this change is Careyn, a provider of elder care services in various municipalities. Careyn announced it will stop employing freelancers starting April 1, 2025, and is encouraging those freelancers to transition to permanent positions. "The flexibility of having varying hours each week, such as 30 hours one week and fewer the next, allows workers to better align their schedules with those of their partners," said Heleen Poortvliet, Careyn's manager.

Sandra Schanck-Breukel, a nurse at Careyn, made the decision to become a permanent employee after working as a freelancer. "There was so much uncertainty surrounding the status of freelancers. I thought I could either wait longer or take action now to avoid more uncertainty," she explained.

As a freelancer, Schanck-Breukel had the freedom to choose when she worked, including skipping shifts on holidays. "I could work anywhere and learn about different workplaces," she added.

Now, she values the security of permanent employment. "Only a two-month probation period, not a one-year contract. Going directly into permanent employment is a great decision," Schanck-Breukel said.

Despite efforts to fill gaps in staffing with permanent employees, Poortvliet does not believe that offering full-time contracts will completely replace the freelancers leaving. "We will have to organize our care services in a different way," she said. "We are exploring options, such as scaling back certain services or asking our staff to work more hours, but other solutions are also being considered."

Joris Knoben, a professor of entrepreneurship at Tilburg School of Economics and Management, commented on the overall trend. "The decrease is not large compared to the total number of freelancers, which is a positive sign. If the decline were faster, it could cause significant disruptions, particularly if tens of thousands of freelancers left sectors like healthcare in a short period."

The healthcare sector, which relies heavily on freelancers, experienced the most significant decline, losing nearly 2,000 self-employed workers in a single month. This is not surprising, given the large number of freelancers working in the sector.

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