To round off our sequence of blogs on the topic of the WAB (we don’t want to bore our audience more than necessary) we wanted to outline our company approach to the legislation challenges and inform our clients, partners and contractors about the solutions we will be offering in 2020 going forward.
Since we have been servicing a vast number of Dutch end clients over the years, we have become very familiar with their internal employment conditions.
Not all end clients have a complex employment conditions structure and we have therefore decided to continue offering third-party payroll services in cases where we can easily apply the full set of end client conditions to the contractor placement.
We will surely need to look at every case individually to determine the actual possibilities but this approach in general allows us to continue offering the services we have excelled at over the past decade.
This solution entails full tax contribution in the Netherlands, payments of social security contributions, pension and healthcare.
The second solution we will be offering in 2020 is the independent contractor solution under the DBA legislation.
Under this option, we would first assess the eligibility of the contractor to qualify as self-employed, the necessity to register the company in the Netherlands, ability to work under the pre-approved model agreement and whether the position is suitable for a self-employed candidate.
As per the latest developments in the legislation, all contractors with a rate of €75 per hour and above while fulfilling the additional zzp criteria, can be contracted as self-employed without major risks to the end client.
Our third service in 2020 is the Back-office solution for recruitment companies.
To enable companies who source and place the candidate to offer in-house payroll services under their own company name. We would set-up your (virtual) Dutch back office and run all contracts and salary calculations for contractors under your company name.
This is what the WAB legislation is trying to achieve (apart from permanent hire by the end clients) and is therefore the most obvious complaint choice for recruitment companies placing medium to large numbers of contractors in the Netherlands.
The solution offers the possibility to avoid applying the end client labour conditions and being able to second your contractors to Dutch end clients under the staffing industry labour agreement with maximum contract duration of 5.5 years.
If you are interested in any of the above solutions, or simply want more information about the contracting possibilities in the Netherlands, please do get in touch with us.