On Friday, Dec. 16, Minister Van Gennip (SZW) and State Secretary Van Rij (Taxation and Customs Administration) presented the "Progress Letter on Working with and as Self-Employed(s)" to the Lower House. Numerous topics are discussed in the letter, such as a legal presumption of employment below a certain hourly rate, the enforcement moratorium of the DBA law and the clarification of the authority criterion. Much remains to be worked out in the coming period, but in response to the proposed plans for the zzp dossier, I am happy to respond.
Recognition of self-employment
In the first pages of the letter, the importance of self-employment for the Dutch labor market is highlighted. I am pleased that the Cabinet recognizes the position and added value of the self-employed. With their knowledge and expertise, self-employed people make an important contribution to solving problems at numerous organizations. It is impossible to imagine our labor market without the self-employed IT professional or project manager. Time and again, research shows that the majority of the self-employed population is very satisfied with their working conditions, salary and sense of autonomy. This is a development we should cherish.
The search for the right balance of elements
At the same time, I am critical of some plans. For example, the cabinet plans to clarify the authority criterion by more explicitly embedding the criterion of 'embedding in the organization' when assessing the employment relationship. In an earlier column, I hinted that the clarification of the authority criterion remains a hot topic of discussion. I remain of the opinion that it becomes very complex to clearly define embeddedness in the organization. When is a worker "embedded in the organization"? And what tasks belong to "the regular work of an organization"? This discussion has been had before and was not settled at the time. Many freelancers work in IT, HR or project management and are more or less embedded in the organization. Will this soon no longer be possible? It is undoubtedly going to cause unrest among clients, intermediaries and zzp'ers. Given the shortage of - and at the same time the high demand for - specialist personnel, this unrest seems highly undesirable to me. What we need right now are rules that encourage and facilitate mobility in the labor market and self-employment. I therefore remain strongly in favor of a pluralistic labor market with different forms of contracts. A labor market where people are given the space to organize their work themselves. I am convinced that this will have a positive effect on the productivity and job happiness of workers and will result in a more innovative and better functioning labor market.
Another element that will receive more attention in determining the employment relationship is the self-employment of the worker. I read in the parliamentary letter that embedding in the organization does not necessarily mean an employment contract. That the government is seeking balance in determining the employment relationship is positive to me. In my opinion, we need to look not only at the task being performed, but also at the individual. Clear entrepreneurial criteria, such as the amount of the rate and specialized knowledge are pre-eminent criteria to include in the assessment of the employment relationship. By assessing the correct facts and circumstances, the distinction between employee and self-employed will automatically become clearer. Clear entrepreneurial criteria will also help the Inland Revenue to enforce effectively.
Opportunities for the intermediary industry
In the coming months the plans will be further elaborated in consultation with stakeholders, experts and social partners. I am pleased with the outstretched hand of the cabinet to take this up together with market parties. A strong coalition of industry associations (ABU, NBBU, I-ZO, VvDN, RIM and Bovib) seems to me to be a pleasant and expert discussion partner for the Cabinet, the Tax Administration and policy makers. By bringing daily practice to The Hague, clear and verifiable entrepreneurial criteria can be drawn up. The members of these industry associations are pre-eminently the specialists when it comes to organizing external hiring and contracting of zzp'ers. Therefore, use their knowledge and expertise!
There is also a great opportunity for intermediaries. The changes that lie ahead offer the opportunity to further professionalize the relationship with contractors, suppliers and clients. By advising and supporting both the supply and demand sides of the labor market in complying with changing laws and regulations. By helping them draft or further develop their hiring policies. At HeadFirst Group, we are aware of the challenges ahead. At the same time, this makes us indispensable in a dynamic, multiform and rapidly changing labor market. New rules force us to adapt. The trick is to successfully bring our relations along with us.