Many Dutch workers fear plan to finally enforce false self-employment law next year

More than a third of self-employed people in the Netherlands are concerned about the tax authority’s plan to begin enforcing a 2016 law to end false self-employment constructions. Online bank Knab surveyed more than 3,000 self-employed people, including some of its own clients, about the Deregulation Assessment of Employment Relations Act, known as the DBA Act.

The Belastingdienst, the country's tax office, will begin checks on January 1 to determine whether self-employed people are not being hired for jobs that should actually be carried out under employment conditions. These checks have not happened for years, but according to the Cabinet, too many false self-employment constructions are being created. Companies are hiring independent contractors for work in such a manner that would be considered an employer-employee relationship under Dutch law if the situation were properly reviewed.

However, according to Knab, many self-employed people said they do not want or need this government intervention. Self-employed people with office jobs and high revenue fear their independent status will be put under pressure.

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.

Knab also warns of a looming brain drain on the Dutch labor market. Many experienced business owners are contemplating early retirement if the law forces them to stop their current work, and young entrepreneurs are looking towards moving to a foreign country. This could result in a lot of knowledge, experience, and talent leaving the already tight Dutch labor market.

Of the self-employed, 13 percent are expected to be designated as falsely self-employed when the Tax Authority starts upholding the law. These percentages are the highest in the government, IT, Media, and Communication sectors.

Self-employed people in these sectors usually work on one assignment for a long time and are dependent on one client for their wages. Just 30 percent would like a salaried job if they have to stop their current self-employed work.