Changed self employment legislation in the Netherlands

The Dutch government has recently revised its approach to regulating self-employment by partially abandoning the proposed self-employment legislation. This decision aims to bring more clarity and stability to both self-employed individual and the organisations that engage them. However, while this may seem like a simplification of the regulatory landscape, the reality for employers remains complex.

In this blog, we explore what has changed, why these changes were made, and what they mean for employers, particularly those operating in an international context.

Understanding self-employment in the Netherlands

A self-employed individual operates their own business without employees. Many international companies engage self-employed individuals for project-based work or specialized tasks. This model offers flexibility for both parties. However, clear rules are essential to prevent misclassification.

Background: Why Was the Vbar Introduced?

The proposed law, the Responsible Remuneration Agreements Employment Relations Act (Vbar Act) was introduced to combat a growing issue in the Dutch labour market: false self-employment.

As flexible working arrangements and the number of self-employed individuals in the Netherlands have increased, it has become more difficult to distinguish between employees and self-employed individuals. Many organisations rely on self-employed individuals for flexibility, but in practice, some of these working relationships resemble traditional employment. The Vbar Act aimed to create clearer rules within the context of self-employed individual legislation by focusing on:

• the level of control an organisation has over the worker
• whether the work is embedded in the organisation
• the economic dependence of the contractor

Additionally, the proposal included a legal presumption of employment at lower hourly rates, which would have shifted more responsibility onto employers hiring self-employed individuals.

What Has Changed?

The Dutch cabinet has decided to repeal the section of the Vbar Act that was meant to define in legislation when a person is considered self-employed and when they are classified as an employee. According to the Minister of Social Affairs and Employment, the lack of support for this part of the proposal led to confusion and concern among businesses, which in turn risked reducing the number of available assignments for freelancers.

At the same time, the government is continuing work on a new framework: the Zelfstandigenwet, which is expected to provide a more balanced and widely supported solution.

Importantly, one element remains a priority: strengthening the legal position of lower-paid self-employed individuals. The government aims to introduce additional protections for contractors earning up to approximately €38 per hour, which signals continued attention to vulnerable groups within the self-employed market.

What Has Not Changed

While part of the legislation has been withdrawn, it is crucial for employers to understand that the broader enforcement landscape has not been relaxed. Since 1 January 2025, the Dutch authorities have resumed full enforcement on false self-employment. This means that organisations are still expected to correctly classify their workforce.

If a self-employed individual is incorrectly classified and is effectively working as an employee, the consequences can be significant:

• employers may be required to pay wage taxes retrospectively
• there may be implications for employment law (e.g. dismissal protection)
• pension obligations could apply

In other words, although the changes may feel less strict on paper, enforcement remains very real in practice.

What Does This Mean for Employers?

For employers, the current situation creates a paradox. On the one hand, stricter legislation has been postponed. On the other hand, enforcement and risks remain unchanged.

This means organisations must continue to approach self-employment engagements with caution. The absence of new rules does not provide more freedom, it simply maintains a level of ambiguity.

Instead of relying on legislation alone, companies should focus on how working relationships are structured in practice. Key indicators such as control, independence, and integration into the organisation remain central when assessing whether someone qualifies as a contractor.

In this context, proper documentation, clear agreements, and consistent working practices are more important than ever when hiring self-employed individuals.

Why This Matters Even More Internationally

For companies operating across borders, this development is part of a wider global trend. Governments are increasingly scrutinising flexible work arrangements and worker classification.

However, the complexity increases significantly in an international context. Each country has its own rules, definitions, and enforcement practices. A setup that is compliant for self-employed individuals in the Netherlands may not be compliant in Germany, France, or the UK. This creates challenges for organisations that want to scale internationally while maintaining flexibility in their workforce.

Rather than viewing compliance as a barrier, companies should approach it as a strategic foundation for sustainable growth. Getting worker classification right from the start prevents costly corrections later on.

How Parakar Supports Employers

Navigating self-employment regulations in the Netherlands, and especially across multiple countries, can be complex. Regulations continue to evolve, and the margin for error when working with self-employed individuals is small.

At Parakar, we support organisations in building compliant and scalable workforce structures. This includes assessing worker classification, ensuring contracts are aligned with Dutch self-employment legislation, and supporting both payroll and HR processes.

For international companies, we offer solutions such as Non-Residential Payroll (NRP) and Employer of Record (EOR) services, allowing organisations to hire in the Netherlands without establishing a local entity, even when transitioning away from self-employment structures.

Our goal is to simplify international expansion. We help you stay compliant and avoid costly pitfalls when.