False self-employment in the Netherlands: risks for companies hiring freelancers

Since January 1, 2025, the use of freelancers (self-employed workers or zzp’ers) in the Netherlands has come under increased scrutiny. The Dutch Tax Authorities have lifted the enforcement moratorium on the misclassification of self-employed workers, meaning that companies face renewed enforcement risks.

For businesses hiring freelancers, a reclassification of a contractor as an employee can have far-reaching tax, payroll and employment law consequences.

In this blog we explain what false self-employment means under Dutch law; the risks and consequences of reclassification; and how companies can reduce these risks in practice.

What is false self-employment?

False self-employment occurs when someone is formally engaged as an independent contractor, while in practice the working relationship resembles an employment relationship.

In such cases, the legal form (often a services agreement) does not match the actual working relationship.

Under Dutch law, an employment contract exists if three key elements are present:

• Remuneration (salary)
• Personal performance of work
• Authority or control by the employer

If these elements are present in practice, the relationship may legally qualify as an employment agreement, regardless of how the parties intended to structure the relationship.

Substance over form

When assessing the qualification of a working relationship, it is not only the written agreement that matters. What matters most is how the parties actually work together in practice.

Even if both parties intend to work with a freelance structure, this intention is not decisive if the factual circumstances meet the criteria of an employment relationship.

In its Deliveroo ruling of March 24, 2023, the Dutch Supreme Court established several factors that must be considered when assessing whether an employment relationship exists.

These include, among others:

• the nature and duration of the work
• how working hours and activities are determined
• whether the work and the worker are embedded within the organisation
• whether the work must be performed personally or whether substitution is possible
• how the contractual relationship was established
• how the remuneration is determined and paid
• the level of remuneration
• whether the worker bears commercial or entrepreneurial risk
• whether the worker demonstrates external entrepreneurship

The assessment requires a holistic evaluation, meaning that all circumstances must be considered together. No single factor is decisive on its own, which makes the qualification of a working relationship highly fact-specific.

Risks and consequences of reclassification

If a freelance relationship is reclassified as an employment relationship, the company hiring the freelancer effectively becomes the employer. This has several important consequences.

Tax consequences

From a tax perspective, the company may be required to pay payroll taxes retroactively, including:

• wage tax
• employee insurance contributions
• the income-related healthcare contribution (Zvw)

Due to the previous enforcement moratorium, the Dutch Tax Authorities have limited retroactive enforcement to 1 January 2025, unless the company acted intentionally or with clear negligence.

The additional tax assessment is imposed on the company, although wage tax may in principle be recovered from the freelancer.

However:

⚠️ Employee insurance premiums and the healthcare contribution cannot be recovered from the freelancer.

Furthermore, from January 1, 2026, the Dutch Tax Authorities may also impose administrative penalties in cases of non-compliance.

Employment law consequences

Reclassification may also entitle the freelancer to claim employee rights and protections, such as:

• salary and collective labour agreement increases
• holiday allowance
• paid vacation days
• continued salary payments during illness
• dismissal protection
• severance payments (transition payment or additional compensation)

Importantly, these employment law claims were not covered by the enforcement moratorium. As a result, freelancers may attempt to claim rights dating back further than January 1, 2025.

In practice, such claims are increasingly being pursued through litigation.

Pension obligations

Another important aspect is pension participation.

If the company is subject to a mandatory industry pension scheme, a reclassified employee should have participated in that pension plan.

This may lead to retroactive pension premium liabilities and potential claims from the pension fund.

Practical approach: 7 steps to reduce risks

Given the potential consequences of misclassification, companies should actively review their freelancer arrangements. The following steps can help mitigate risks.

1. Analyse the actual working relationship

Look beyond the contract and assess how the collaboration works in practice. Document your analysis and reasoning.

2. Use approved model agreements where possible

Model agreements approved by the Dutch Tax Authorities remain valid until the end of 2029, provided that the practical execution matches the agreement.

3. Align contract and practice

Avoid contractual clauses that are not followed in practice, such as substitution clauses that do not exist in reality.

4. Organise autonomy in the work

Focus on output-based agreements and limit hierarchical instructions where possible.

5. Avoid structural embedding

Use freelancers primarily for temporary, project-based or specialised assignments, rather than permanent organisational roles.

6. Verify genuine entrepreneurship

Check whether the freelancer demonstrates actual entrepreneurship, for example:

• multiple clients
• business investments
• active client acquisition
• entrepreneurial risk

7. Seek professional advice in case of doubt

With enforcement increasing again, proactive compliance is essential.

Conclusion

With the end of the enforcement moratorium and the introduction of administrative penalties, the risks surrounding false self-employment in the Netherlands have increased significantly.

Misclassification can lead to substantial tax liabilities, employment law claims and pension obligations for companies hiring freelancers.

If you are unsure whether your collaboration with a freelancer still reflects the reality of the working relationship, it is advisable to review your position in time.

At Bol International, our specialists support international businesses in assessing contractor relationships, managing compliance risks and structuring workforce solutions in the Netherlands.