On 3 April, a new legislative proposal by the political parties VVD, D66, CDA and SGP was published for consultation. It aims to bring long-awaited clarity to the legal status of self-employed individuals in the Netherlands. It partially replaces a previous proposal by the Dutch government (Wet verduidelijking beoordeling arbeidsrelaties en rechtsvermoeden; WVBAR) which addresses similar issues but had been subject to criticism from some stakeholders, including the Dutch Council of State. The political parties submitting the new legislative proposal believe it provides for a clearer framework than the WVBAR for determining the legal status of a working relationship.
Like many other countries, The Netherlands has long struggled with the grey area between employment and self-employment. Recent rulings from the Dutch Supreme Court emphasize that the key criteria for classifying employment relationships — including the distinction between employees and the self-employed – remain primarily a legislative matter. Indeed, issues such as whether to further define what it means to be “in service of” someone, how deeply the work is embedded within an organization, or whether to introduce legal presumptions (for example, based on remuneration levels) are all currently being considered by both Dutch and European lawmakers. The Supreme Court made it clear that no further judicial developments in this area are appropriate at this time, signaling a clear need for legislative action rather than court rulings to clarify and regulate these matters.
Self-Employment Law (Zelfstandigenwet)
This latest legislative proposal is designed to address long-standing challenges in the Dutch labor market by pursuing three core objectives. First, it aims to provide legal certainty for both self-employed individuals and the businesses that engage them, offering clarity around the classification of work relationships. Second, it seeks to modernise labour legislation to better reflect today’s labor market, acknowledging the growing desire among many professionals to work independently and retain greater autonomy. Third, it strives to create a level playing field between employees and the self-employed, while simultaneously enhancing the social protection available to the latter.
To achieve these goals, the legislative proposal introduces a three-stage cumulative assessment to determine whether someone may lawfully operate as a self-employed individual.
1. Independence test
The independence test consists of five mandatory criteria. An individual will only be considered as self-employed if they meet all the following conditions:
- They work for their own account and at their own risk;
- They maintain proper and reliable administration (i.e. accounts and the other records appropriate to a free-standing business);
- They present themselves in the market as an independent entrepreneur;
- They have made adequate arrangements to protect against the risk of incapacity for work; and
- They contribute proportionately to a provision that protects against income loss and/or risk of poverty in retirement.
It would be the responsibility of the self-employed individual to demonstrate that they comply with these criteria.
2. Working relationship test
If the individual satisfies the first test, the next stage is to assess whether the working relationship between the parties qualifies as self-employment – the relationship must meet all four of the following criteria:
- There is a mutual intention between the parties to collaborate outside the context of an employment contract;
- The self-employed individual has freedom to determine their own working hours;
- The self-employed individual has freedom to organise their own work; and
- There is no hierarchical supervision exercised by the client over the individual.
The written agreement between the parties must explicitly explain how these criteria are fulfilled.
3. Sectoral legal presumption
Finally, in those sectors with a high risk of false self-employment, the new proposal allows for sector-specific legal presumptions. These presumptions help establish when a relationship is likely to be an employment contract rather than genuine self-employment, based on factors tailored to the particular industry. This approach balances the need for sector-specific enforcement in areas vulnerable to abuse, while avoiding unnecessary regulation in sectors where genuine self-employment is more common and less problematic.
New Supervisory Body
The proposal also seeks to establish a Commission for the Assessment of Self-Employed Persons (Commissie Beoordeling Toetsingskader Zelfstandigenwet). This body would be able to provide legally binding advice to one or both parties and evaluate the working relationship either before, or within a year of, the contract starting. It would play a vital role in providing early and binding clarity, reducing uncertainty and disputes about employment status.
Impact
Under this latest proposal, businesses would take greater responsibility for classifying correctly the status of individuals working for them. It offers reduced legal risk thanks to the clearer frameworks, but it also requires companies to stop relying on outdated model agreements and instead assess each contract individually. For genuinely self-employed individuals, the proposal provides clearer recognition of their entrepreneurial status and mandates protections against income loss and pension gaps. Overall, it should pave the way for greater legal certainty for all parties when entering contracts.
The legislative proposal is currently open for consultation until 23 June 2025, allowing stakeholders and the public to review and provide feedback on the draft law. However, following the collapse of the Dutch government on 3 June – after the PVV withdrew from the governing coalition – new elections will be held on 29 October. As a result, the future of many recent legislative proposals, including this one, remains uncertain. We will of course keep you posted on developments.