Dutch government will fine employers who misclassify self-employed workers

The caretaker Dutch cabinet said it is “undesirable” to extend the suspension of fines for employers who hire self-employed workers (zzp’ers) for jobs that should be done by regular employees. Misclassifying workers can allow companies to avoid paying social security contributions and other employment benefits, giving them an unfair advantage and reducing protections for workers.

Since the beginning of this year, employers caught by the tax authorities for misclassifying zzp’ers can face retroactive social premium assessments. This means companies may have to pay back taxes and social security contributions as if the self-employed workers had been hired as regular employees from the start. To give businesses a “soft landing,” a majority in the Tweede Kamer requested that fines not be imposed in 2025, allowing companies time to adjust to the new rules.

State Secretary Eugène Heijnen (Tax Authority, BBB) told the Tweede Kamer that “combating false self-employment is crucial,” not only to prevent exploitation but also to avoid unfair competition between employers and workers. By misclassifying workers, companies can undercut competitors who follow the rules and deny workers basic rights such as pensions, sick leave, and unemployment benefits.

Heijnen warned that further delaying full enforcement would send “a bad signal” to organizations that are trying to comply with the law. “We see a lot of movement from organizations that make real efforts to do things properly,” he said, noting that this progress justifies “not taking a step back.”

The cabinet also cited financial reasons for ending the fine suspension. Postponing full enforcement could be interpreted by the European Commission as violating agreements under the COVID-19 recovery plan, from which the Netherlands still expects billions in funding.