Experts doubt effectiveness of new freelance law: 'Much remains a grey area'
The Dutch government plans to implement the Self-Employed Persons Act by 2028 to clarify the distinction between independent contractors and employees. Experts remain skeptical, however, arguing that the proposed assessment tests for work relationships and entrepreneurial status contain persistent gray areas and may place excessive administrative burdens on freelancers.
The Dutch government plans to introduce the Self-Employed Persons Act by 2028, aiming to reduce ambiguity surrounding the status of independent contractors and prevent false self-employment. The legislation proposes two upfront assessments: a self-employment test and a work-relationship test. These tools are designed to categorize workers into a 'safe harbor' by evaluating their business practices, such as the requirement to have multiple clients and professional registration, alongside the level of autonomy in their work methods. Law experts and academics argue that while the law aims to clarify, it may fail to resolve the significant 'gray area' where many freelancers operate. Critics note that the criteria for determining sufficient independence remain vague, particularly regarding work instructions. Furthermore, experts express concern that the new regulations impose heavy administrative burdens and additional obligations on both contractors and clients. There is skepticism regarding the law's effectiveness without robust enforcement mechanisms, as even those who qualify may face reassessment if their business circumstances change over time.
Based on reporting by nu. Translated and condensed by LocalHeadlines.
