Lockdown has slowed down all businesses, but it has not stopped the Dutch government from continuing working on the legislation for independent contractors (zzp).
We wanted to update you on the latest developments and draw your attention to the most important aspects you need to keep in mind when hiring, placing and working with zzp contractors.
End client statement for independents with high rates
The end client will no longer be required to provide a statement confirming the classification of the hired individual as an independent contractor.
Instead, the client will be able to utilize the webmodule tool to assess the status of the classification of the contractor.
By answering a number of questions within the webmodule, the client will be able to obtain the authority’s opinion on how to correctly classify the contractor.
Unfortunately, neither the webmodule nor the questions are available yet, so it is difficult to to provide an example or idea about what information needs to be provided.
The expectation is that the webmodule will be available in autumn of 2020.
The behindlying idea is to relieve the client from the difficulties of making such an assessment independently.
Minimum rate for independents
The proposal to instate a minimum rate which a contractor would need to earn in order to be classified as independent contractor, has been retracted by the government, following resistance by the concerned zzp organisations against this proposal.
The government expects to follow and incorporate feedback and suggestions from the abovementioned organisations to work out regulations around lower rates without damaging the status of independent contractors.
Moratorium on Enforcement of the DBA until January 2021
The moratorium is still in effect until at least January 2021, with the exception being made for malicious companies who will be audited and fined even before the end of the moratorium period.
Summary and Advice
The historical general approach to classifying contractors as independent and the criteria the contractors need to meet for the classification have not changed since the introduction of the DBA legislation.
The tools used for such assessments have changed and the latest version of these tools stills needs to go live.
Assuming that the average independent contractor earns well above Eur75 per hour, meets the general criteria for independency, and the project allows for independent contractors, working in such capacity is possible.
Our advice on this topic has not changed: if you as a recruiter can carry out the first assessment and have gained approval from the client to hire independent contractors for the project, chances are high that you can place your candidate in such capacity.
It is always advisable to speak to us about the details of the placement. Although we try to provide comprehensible information in our blogs, website and conversations, it may be difficult for recruiters to carry out a full thorough assessment.