HeadFirst Group, Manpower, Randstad and VZN on the future of the labor market

Led by ONL founder Hans Biesheuvel, CEOs Han Kolff (HeadFirst Group), Jeroen Zwinkels (Manpower) and Dominique Hermans (Randstad) and chairman Cristel van de Ven of Vereniging Zelfstandigen Nederland talked about the future of the labor market. The roundtable can now be viewed back.
Part 1
The labor market is becoming more flexible. This trend will continue in the coming years. The permanent contract is not the solution and political The Hague must become aware of these developments. What is the role of flex companies in this development and how can we support The Hague?
Thesis: Flexibilization of the labor market creates a lot of job insecurity, a bigger gap between rich and poor, and it encourages false self-employment.
Part 2
The focus in The Hague is mainly on tackling false self-employment. Although it is a very small group, we are not against it. How can we fight false self-employment, but at the same time continue to give real entrepreneurs space?
Thesis: Establishing a basic social system for all working people provides security for those who need it and a basis for entrepreneurship for those who want it.
Part 3
What role can major HR service providers within the flex industry play in keeping people sustainably employable? How can we educate/train and guide flex workers and self-employed workers from job to job?
Thesis: Training and personal development is the responsibility of the self-employed and the flex worker themselves.
New minister can get right to work on zzp dossier

If it were up to Han Kolff, CEO of HeadFirst Group, and ONL chairman Hans Biesheuvel, the successor of outgoing minister Wouter Koolmees in a new cabinet would immediately start working on the position of the self-employed in the labor market. The flexibilization trend continues worldwide and requires good and clear regulation. The Netherlands can learn a lot from the situation in Belgium, California and Scandinavia. This is evident from research by independent knowledge platform ZiPconomy, commissioned by HeadFirst Group and ONL.
Positive reaction minister Koolmees
ONL voor Ondernemers and HeadFirst Group, market leader in the Benelux in the field of external hiring, want to work together with politicians to shape the labor market policy and make the labor market future-proof. Minister Koolmees takes the call seriously and took the report 'Independence, flexibility and social security. A look across the border'. Hans Biesheuvel, Han Kolff and Frits Huffnagel recorded a podcast about the report with Koolmees.
Background
Not only in the Netherlands is there a lot of discussion about laws and regulations around work. Therefore, ZiPconomy looked at how the aforementioned regions deal with social security, self-employment and rules around flexible work.
For both HeadFirst Group and entrepreneurs' organization ONL, it is clear: it is time to make decisions together - politics and business. There has been enough talk in recent years. Countries around us are making sharp choices and also in the Netherlands we have to make clear and unequivocal choices,' says Biesheuvel. Kolff, himself active in the flex industry for many years, agrees: 'There is a task for the new cabinet. Step by step we must work towards future-oriented solutions. A good first step is to think together about the introduction of a basic social system for all workers. By doing so, we will create a more level playing field, regardless of contract or legal form. I believe that many self-employed people in the Netherlands are willing to participate in this, in order to properly protect the bottom of the market and leave the market free above. In any case, we are happy to join the debate and invite all parties to think together about a feasible implementation.
Key research findings
'In Belgium, for specific sectors, where the risk of underpayment or vulnerable workers is high, nine additional criteria have been devised in determining the employment relationship. This approach contains much more customization and in this way false self-employment is effectively combated,' Kolff says. The report further states that the fiscal and social security differences between employees and the self-employed in Belgium are much smaller. Good examples for the Netherlands.
Researcher Hugo-Jan Ruts, also editor-in-chief of ZiPconomy, also examined California, the birthplace of the gig-economy. There, the ABC test was introduced in 2019; a test that uses three criteria to determine whether someone can be hired as self-employed. 'The format of the test is tantalizingly simple, but within a short time many professionals at the top end of the market were unable to get assignments because of these criteria. So even in California they have not yet found the solution to distinguish between vulnerable and non-vulnerable self-employed.' As the flexibilization trend continues unhardened there as well, consideration is being given to protecting the bottom of the market.
In outline, the Scandinavian situation is similar to the Dutch situation. There, too, there is discussion about making a clear distinction between employees and the self-employed. Criteria used in determining the employment relationship are - as here in the Netherlands - derived from case law. In Scandinavia there is a desire to make this set of criteria for determining the employment relationship more explicit and to lay them down by law. Adjusting these criteria is pre-eminently a task for politics. A recognizable call, then.
Also watch the roundtable discussion on the future of the labor market
Led by ONL founder Hans Biesheuvel, CEOs Han Kolff (HeadFirst Group), Jeroen Zwinkels (Manpower) and Dominique Hermans (Randstad) and chairman Cristel van de Ven of Vereniging Zelfstandigen Nederland talked about the future of the labor market. The roundtable can be viewed back on YouTube.
Corona drives flexibility

The past year is one that will go down in history because of the global impact of the coronavirus. Companies closed their offices, trains were never quieter and the job market changed. The virus demanded adaptability from everyone and it made people think. So did our CEO, Han Kolff. Because in this new year where people worldwide are being vaccinated for COVID-19, the world will look different again. For example, how will the job market change in 2021? Kolff shares his predictions.
Impact COVID-19 on external hiring
"The impact of corona on the hiring market for knowledge-intensive positions in 2020 has been limited," Kolff says. "Obviously, in principle we saw a setback in new hiring requests and hours worked. Fortunately, the positive trend gently set in as of May. The number of professionals whose assignments were concretely terminated also remained very limited. Three reasons underlie this; 1) highly educated knowledge workers can perform work at clients largely remotely, 2) they are often employed in business-critical processes of organizations, with the result that these projects simply continued, and 3) government organizations make extensive use of external professionals, they proved to be a stable hiring source at the time of the corona crisis."
Even for "permanent," this picture is supported by CBS figures. At the end of 2019, a record 286 thousand vacancies were open. As a result of the corona crisis there was a decrease of 30 percent, reducing the number by 86 thousand. Nevertheless, at the end of September, the number of open vacancies rose again to 216 thousand. This is expected to have increased further in the last quarter of 2020 and will increase even further in 2021.
Forecast for 2021
"Corona is driving the flexibilization of the labor market in 2021, stemming from the further increasing need for organizations to move with the market, the need to get a grip on hiring and a new boost in digitalization," Kolff says. He explains these three causes as follows:
- By allowing the cost of personnel to move with projects, business pressures, the market and the economy, it is possible to work more cost-efficiently. In addition, among professionals the urge for flexible working is undiminished. Being able to determine their own working hours, work days, assignments and rate is still attractive to many. With the rapidly shrinking life span of skills and the coming and going of many jobs, professionals significantly increase their employability by working for different assignments and companies and training themselves on the job for the next job.
- Organizations that have a grip on their external hiring know exactly who is being hired at what place in the organization and why. Organizations that did not have that picture at the start of the corona crisis proved less able to move with market developments.
- Location-based work has proven to be a risk factor. During the crisis, work as we previously knew it changed to mass homeworking, which made the need to automate - unfortunately painfully - obvious. This gives a new boost to the digitization drive of organizations. From this comes more demand for online and IT specialists, who relatively often work on a flexible employment basis.
Kolff argues that service providers who can respond to these needs with relevant data-driven services and a good balance between tech (digitization of processes) and touch (personal contact, good advice) will be the winners of the year.
Finally, Kolff expresses his confidence that "in 2021, the new cabinet to be formed will show the ambition to want to align labor market legislation - with the DBA Act as a hot topic, of course - with the desire for flexibility of clients and professionals, of course with sufficient social security for anyone who wants it."
Sixth progress letter 'Self-employment'

On November 16, 2020, the Minister of Social Affairs and Employment and the State Secretary of Finance - Taxation and Fiscal Service -, also on behalf of the State Secretary of Economic Affairs and Climate, informed the House of Representatives about the current state of affairs and the follow-up steps regarding the measures envisaged in the coalition agreement in the field of "self-employment.
The web module
This sixth progress letter provided an update on the status of the web module and the previously announced pilot. The government is developing this tool to give clients clarity and - where possible - certainty about the qualification of the employment relationship for payroll taxes. The pilot is expected to start on Jan. 11, 2021, and will last at least six months. Subsequently, the pilot will be evaluated in the summer of 2021 and a decision on a possible introduction will be made.
The objective of this pilot is to test in practice whether the web module is actually helpful for clients in clarifying the earth of the employment relationship and - if necessary - in shaping the employment relationship. The following outcomes are possible:
- Principal's declaration: the assignment may be performed outside employment (for example, by a self-employed person).
- Employment indication: there are strong indications of (fictitious) employment.
- No judgment possible: based on the answers given, it is not clear whether there is work outside employment or work in employment.
During the pilot phase, the above outcomes have no legal status. The pilot serves mainly as an information tool, so clients cannot derive any certainty from the outcome. In addition, a help desk will be set up for clients to ask additional questions. The help desk does not provide advice, but is intended to support the interpretation of questions and answers.
Supervision and enforcement
In the 2017 coalition agreement, "Confidence in the Future," the phasing out of the enforcement moratorium is linked to the introduction of new legislation that provides more clarity on the nature of the employment relationship. After the aforementioned pilot has ended, the Cabinet will decide at what point enforcement will be phased in. The earliest date will be October 21, 2021. This does not mean that the Tax and Customs Administration and the Inspectorate SZW will not conduct supervision (company visits, providing information and book audits). However, the Tax and Customs Administration can only enforce if there is malicious intent or if instructions are not followed within a reasonable period of time. Between October 1, 2019 and August 31, 2020, a total of 155 companies were investigated. Those visits revealed a great need for information on the applicable laws and regulations. In the "Progress Report on Supervision of Working Relationships," State Secretary Vijlbrief reported that no "malicious" client has yet been found.
Platform Work
In the previous progress letter, the Cabinet indicated that it was concerned about the position of platform workers and wanted to examine how their position could be strengthened. In the Cabinet's response to the report of the Commission for the Regulation of Work, it was indicated that the route initially investigated to realize this through the Law on the Allocation of Workers by Intermediaries (Waadi) was not an obvious one. In the coming months, the government will make a start with the elaboration of a legal presumption around platform work and will investigate whether such a legal presumption can indeed strengthen the legal position of platform workers in practice. The elaboration will be discussed with the European Commission in order to see whether a legal presumption that is tenable under European law can be achieved.
Disability insurance for the self-employed
In the pension agreement it was agreed that there will be a statutory insurance obligation against the risk of disability for the self-employed. The Cabinet intends to adopt the earlier advice of the social partners. Work is currently being done in cooperation with various parties on a feasible, explainable and affordable regulation. The Cabinet aims to share more information on the progress of this scheme with the outside world before the end of this year.
Fifth progress letter 'Self-employment'

On June 15, 2020, the Minister of Social Affairs and Employment and the State Secretary of Finance - Taxation and Fiscal Service -, also on behalf of the State Secretary of Economic Affairs and Climate, informed the House of Representatives about the current state of affairs and follow-up steps regarding the measures envisaged in the coalition agreement in the field of "self-employment.
The minimum rate and self-employment statement are not further elaborated upon
In the progress letter, the relevant ministers announce that the cabinet has decided not to proceed with the draft legal texts for the minimum rate and the self-employed declaration. The elaboration of these draft legal texts appears to be a complex task. The various (implementation) tests, discussions with the field and responses to the Internet consultation have revealed a considerable number of bottlenecks. In addition, the Committee on Regulation of Work is also critical of the proposals. The chosen measures involve a large administrative burden, create a lot of ambiguity, lack support and are difficult to implement and enforce for the implementing and controlling authorities.
The cabinet further announces that it will enter into discussions with social partners and other parties to lay down agreements for the self-employed. In addition, the Cabinet wants to strengthen the labor market position of platform employees. Therefore, it is being examined whether the regulations for triangular relationships, such as intermediaries and employment agencies, can also be declared applicable to platforms. Finally, the Cabinet is working on a broader labor market agenda. This stems from the advice of the Committee on Employment Regulation.
Web module starts as a pilot
The web module is not yet ready, but the Cabinet aims to start the web module as a pilot this fall. With the web module, the Cabinet is developing a tool to give clients clarity on the fiscal, labor law and social insurance qualification of the employment relationship. The web module will provide three possible outcomes (client declaration, indication of employment, no judgment). These outcomes do not yet have legal status. In this pilot phase, clients cannot derive any certainty from the outcome. The web module only functions as an information tool to obtain clarity about the employment relationship.
After the pilot phase, a decision will be made about the further consequence of the web module. The Cabinet does aim to attach legal consequences to the client declaration when the web module is eventually introduced, so that a client can derive certainty from it. After the summer recess, the Cabinet will inform the House of Representatives about the further timetable and the start of the pilot.
Supervision of labor relations
The corona crisis has implications for the deployment of inspections, supervision by the Tax and Customs Administration and the method of inspection by the Inspectorate SZW. In any case, the enforcement moratorium has been extended until January 1, 2021. During this moratorium, the Tax and Customs Administration enforces if a client turns out to be malicious or if clients do not adjust their working methods within a reasonable period (usually up to 3 months) following instructions from the Tax and Customs Administration.
Furthermore, after the summer recess, the Palland motion calling for a six-monthly report on the implementation of the supervision of labor relations will be implemented. In the fall, the Cabinet will make a decision on further extensions of the moratorium.
HeadFirst Group rises to second spot in Flexmarkt Turnover Ranking

HeadFirst Group climbs to second place in the Flexmarkt Turnover Ranking Top-100 2020, published this week, which lists the 100 largest flex companies in the Netherlands based on their revenue in 2019. Whereas last year we made the top 3 for the first time and were the biggest grower in the flex market, we reach a new milestone with the second spot. With a turnover of over 1 billion, we are proud to be the largest - and growing - intermediary and MSP service provider in the Benelux.
The Flexmarkt Turnover Ranking Top-100 is a prestigious list, which companies in the flex market look forward to every year. Mike Korenvaar, CFO at HeadFirst Group: "This list visualizes the giant steps we are taking as an organization. Last year we experienced organic growth of over EUR 100 million, a 13% increase over 2018. An unprecedented achievement in a year that, after two acquisitions, was partly marked by operational integration of working methods and locations in Utrecht, Rotterdam and Hoofddorp and the migration of the various IT systems. That makes me enormously proud."
Coronacrisis won't get hiring market down
Still, it is extraordinary to look back at 2019 figures when we are currently in the midst of the corona crisis. The economy is under considerable pressure, which naturally also has its impact on the hiring of flexible labor. Gert-Jan Schellingerhout, CEO at HeadFirst Group, explains his view: "We saw that the number of new hiring requests dropped rapidly in March. The pandemic also had its impact on the number of hours worked by the 12,000 professionals working for clients through us. However, we can say overall that the impact has been limited for us so far. The type of professional we mediate, mostly highly educated knowledge workers and often working in mission-critical processes in organizations, can perform their work at our clients largely remotely. And we have a good, healthy spread of clients in various industries, including many government organizations that have remained a stable hire."
These observations provide a slightly positive outlook. Schellingerhout: "Despite the corona pandemic and a number of uncertainties, we are continuing our growth and acquisition strategy. As we are, entrepreneurial and hard-working, we are pulling out all the stops to still make 2020 the celebration year we originally envisioned because of our 25th anniversary."
Source: flexmarkt.co.uk
About Flexmarkt Turnover Ranking Top-100
The Flexmarkt Turnover Ranking provides an overview of flex companies, from small to large, providing a variety of services in staffing and hiring. In addition to staffing agencies, it includes numerous payroll companies, as well as secondment companies, zzp intermediaries and MSP service providers. The Flexmarkt Turnover Ranking Top-100 is published annually by Flexmarkt in cooperation with Corporate Finance International (CFI). This leading ranking covers more than half of the total Dutch flex industry in terms of turnover and thus provides a clear, representative picture of developments in the market.
About HeadFirst Group
HeadFirst Group is market leader in the Benelux in the professional organization of external hiring. The organization offers a diversity of flex solutions, including contracting, payrolling, matchmaking, global sourcing, Managed Service Providing and business consultancy. Currently, more than 12,000 professionals work daily for over 200 clients in Europe, with which HeadFirst Group realizes an annual turnover of over 1 billion euros. Part of HeadFirst Group are the organizations HeadFirst, Myler, Staffing Management Services, Source, Pitch Payroll and Select.
For further information
Do you have any questions or comments in response to this message? Please contact Bart van der Geest, manager of marketing & communications at HeadFirst Group, at 023 - 568 56 30 or bart.vandergeest@headfirst.nl.
Third cabinet web module progress letter postponed again, opt-out maximum one year

Following two progress letters in 2018, Minister Koolmees again informed the House of Representatives June 24, 2019 about the progress around the replacement of the DBA Act. We summarize the most important developments for you.
Bottom of the market
For the bottom of the market, there will be a minimum rate of €16 for self-employed workers. This is an alternative to the mandatory employment contract for self-employed workers at the bottom of the labor market, which was found to be in conflict with European legislation. With this, the government achieves the same goal: preventing self-employed workers from being hired at too low a rate.
Upper end of the market
For the upper end of the market, there will be a self-employed person's declaration (until now called the opt-out), which will not only provide certainty in advance about payroll taxes and employee insurance, but also as far as possible about labor law consequences (e.g., continued payment of wages during illness), pension obligations, and collective bargaining provisions. This is a further implementation of the agreement in the coalition agreement on the opt-out.
The following conditions apply to use of the self-employment statement:
1. The assignment contract must state that the parties intend not to enter into an employment contract;
2. The contractor must be registered with the Chamber of Commerce;
3. The client and the contractor both sign the declaration of self-employment;
4. The labor remuneration is at least €75 per hour;
5. The agreement is entered into for a maximum of one year.
*** Assignment period of up to one year ***
The Cabinet considers it desirable to include the criterion of a maximum of one year, a period previously cited in the coalition agreement (2017), in order to prevent the self-employment declaration from being used by self-employed persons who perform work for a longer period of time.
Should the work last longer than a year, the declaration of self-employment will no longer apply to the period after that year. This does not mean that clients cannot hire self-employed workers for longer than one year, but in practice it will mean that clients seeking certainty will have to use the web module to request an opinion on a working relationship.
Web module and client declaration
The government is working on a web module, which, on the basis of the answers to a number of questions, can establish in advance that there is no employment relationship. In that case, the web module provides a so-called employer's declaration. This declaration gives the client advance certainty that no payroll tax needs to be withheld and remitted and no employee insurance premiums and income-related healthcare insurance contributions need to be paid. With the term "certainty in advance" comes a comment, which is described in the letter as follows: "The principal's declaration is valid insofar as the web module has been filled out truthfully and is used accordingly in practice." Enforcement on the latter will come when the legislation is finally in place.
*** Weighting of factors ***
The web module will be designed on the basis of legislation, practical cases and case law in the context of the qualification of the employment relationship. In order to keep the administrative burden low, the possibility of reducing the questionnaire as much as possible is being examined.
The University of Amsterdam has developed a legal database that provides insight into case law in the fields of labor law, taxation and social security from approximately the last ten years with respect to the classification of an employment relationship. The analysis of this database is used to arrive at a weighting of the individual questions: which element weighs(s) heavily in the qualification of the employment relationship.
Meanwhile, an (extensive) questionnaire has been distributed to 50,000 clients with a request to complete the questionnaire. On the basis of data analysis, it is being considered whether an algorithm can be developed that, through smart routing with as few questions as possible, arrives at a correct outcome.
The web module will be tested during the summer. After the summer, the House of Representatives will be informed about the results of this test phase.
*** Criterion 'regular business activity' to be dropped ***
Contrary to the coalition agreement, the cabinet proposes to drop the criterion 'regular business activity'. There is much resistance to this criterion among self-employed workers and clients. In particular, the fact that it is a new criterion that has not yet been fleshed out by case law, and that its meaning will continue to change over the years, raises the concern that it will generate a lot of discussion. This would thereby lead to more uncertainty and less clarity, which is undesirable for the Cabinet.
Another delay, enforcement moratorium extended
The Cabinet is currently working on legislation. The aim is to put this legislation out for Internet consultation in the third quarter of 2019. The legislation is scheduled to come into force in 2021, which was previously scheduled for January 1, 2020. In line with this, the enforcement moratorium has also been extended until at least January 1, 2021.
*** Enforcement on malicious intent difficult ***
During the enforcement moratorium, the Inland Revenue enforces malicious intent. In practice, however, it turns out to be very difficult to meet the heavy burden of proof for malice. Therefore, the possibilities for enforcement during the moratorium will be tightened: as of January 1, 2020, the Tax and Customs Administration will also be able to enforce when principals do not (or do not sufficiently) follow instructions from the Tax and Customs Administration - which it gives when it takes the position that the qualification of the employment relationship for payroll taxes is not in accordance with current legislation - within a reasonable period of time.
More information
Want to know everything about (the replacement of) the DBA Act? On this website you will always find the latest news. Also download the free white paper, where we have put together all the important information for you.
We are also here to advise and assist you. Want to speak with a HeadFirst advisor? Send an email to info@headfirst.nl or call 023-5685630.
Follow-up investigation into potentially malicious companies

After the start of the company visits in 2018, the Tax and Customs Administration has now visited 104 companies from different industries and checked for compliance with the DBA Act. On March 5, 2019, State Secretary of Finance Menno Snel shared his findings with the House of Representatives through a letter.
This shows that 45 companies have "sufficient knowledge and experience with the current zzp legislation (is) and the law is being applied correctly. In total, 59 organizations appear to be 'acting incorrectly to a greater or lesser extent' according to the Tax Office. A follow-up investigation is underway at 12 of these, because the inspectors suspect them of knowingly hiring self-employed workers through a sham construction. The big question now is: in which of these companies can the tax authorities prove that they are malicious?
Guidelines Handbook Payroll Taxes are confusing
The reason that 6 in 10 companies' actions regarding external hiring are questioned, according to the Tax Office, has to do with the following:
* There are indications of the presence of a relationship of authority, while according to the agreement used there would be no relationship of authority.
* Zzp'ers perform the same work and in the same way as own employees.
* There are core activities, the work involves an essential part of the business, which may be an indication of employment.
* No substitution of the self-employed person is possible or desirable, and there also appears to be authority.
* The self-employed person has no ability to independently schedule his work.
* The duration of the employment relationship is so long that the freelancer's work seems to be embedded in the organization.
* There seems to be fictitious employment.
* Work is not done in accordance with the model agreement.
The study thus puts into action the fact that the directive on assessing the employer-employee relationship is maintained as "valid policy. Indeed, all the elements mentioned above are part of it. The guideline was incorporated into the Tax Office's 'Payroll Tax Handbook' in December 2018. Hannah Dias, manager tax advice at BDO: "Uncertainty about the qualification of an employment relationship, which has not been completely removed even with the guideline assessing the relationship of authority, causes companies to be reluctant to hire self-employed workers. With all its consequences for zzp'ers, clients and thus the Dutch economy."
Multi-interpretable indicators is now market problem
Snel's report on the company visits comes on top of the directive assessing the employer-employee relationship. In an earlier post on employer-employee relations, Dias already stressed that the various factors named in the directive must always be considered in relation to each other and therefore leave room for interpretation. "It is not always clear what weight and relevance is attributed to each element and how these elements should be assessed in their interrelationship. In addition, some elements of the guideline are so ambiguous that it is difficult for practitioners to understand them and apply them correctly in their own specific situation. The actual situation is important here. Is it sufficiently clear what the assignment entails and under what circumstances it will be performed? And what value is placed on these various facts and circumstances?"
Malicious: yes or no?
The Tax and Customs Administration uses the results of the company visits as input for the supervisory and enforcement strategy to be developed. The aforementioned 59 organizations that are (potentially) acting improperly will be involved in this. "For them, partly on the basis of the Directive, the Tax and Customs Administration can take the position that there is a malicious situation. Once one of them is actually labeled as malicious, it is not the end of the story. In fact, a business can object to any additional tax assessment imposed, first to the Tax Office and, at a subsequent stage, to the courts. Both bodies will reassess the situation based on all the relevant facts and circumstances presented."
Continued uncertainty due to 'guidelines on assessment of employer-employee relationship'

The long-running story called 'Wet DBA', got another new chapter in December 2018: the assessment of a relationship of authority. After the Cabinet sent the guideline to the House of Representatives in late November 2018, this memorandum was incorporated into the Tax and Customs Administration's 'Payroll Tax Handbook' on December 12, 2018. This gave it the status of "applicable policy. There is currently unease in the flexible labor market about how this proposal became policy without the intervention of the House of Representatives.
Hannah Dias, manager of tax advice at BDO, is surprised at these noises. "The policy is based in part on various rulings by judges who have addressed the issue of whether or not an employment relationship exists. It is a summary of already existing legislation and case law. In that respect, it is therefore not surprising that the House of Representatives is not familiar with it." She considers it a greater risk that the prevailing policy may cause a Principal to be classified as malicious more quickly. "This can be detrimental to organizations, as malicious parties may also be subject to retrospective taxation for the past. Since the publication, Principals can hide more difficult behind 'I didn't know,' because everyone can read in black and white what the Inland Revenue considers a relationship of authority."
Noise at 40 indicators
The cabinet promised to come up with a clarification of the definition by January 1, 2019. It succeeded in doing so through the previously described "directive on assessing the employer-employee relationship," but this has not provided the clarity the market craves. "For example, it is frustrating for organizations that the various factors indicating whether or not there is a relationship of authority must always be considered in relation to each other. That leaves room for interpretation," Dias said. She gives the following examples in this regard:
- Assessment using more than forty indicators is complex. Moreover, it is not immediately clear what weight and relevance is assigned to each element and how these elements should be assessed in relation to each other.
- Some elements of the directive are so ambiguous that only judges and other labor law specialists can understand and apply them correctly. Their role is important here. Do they ask questions properly? What (new) facts are ascertained? And what value is placed on facts? Because these are customized cases, a uniform outcome is not guaranteed.
Organizations create policies
Dias emphasizes that the best way for organizations to deal with this is to (re)establish a hiring policy. Some organizations take this further than others, based on different interpretations of signals reflected in public policy. "It is about organizations showing - in good faith - that the hiring process is well thought out and trying to implement laws and regulations in this process as well as possible. You do this on the one hand by identifying risks and securing them, on the other hand by minimizing the extent of risks as much as possible and, for substantiation, recording everything in a file." According to Dias, a review of paper and practice is the starting point here. "Stay in control, through a good policy on the one hand and a corresponding implementation in practice on the other," Dias said.
Working DBA-proof
Dias understands that this is not always easy and therefore recommends seeking help from a consultant. "Organizations are increasingly knocking on the door for an analysis and advice on the hiring policy. I guide, together with HeadFirst, trajectories to ask, for example, questions such as 'For which functions do I hire external workers?', 'When can an external worker perform an assignment as a zzp'er?' and 'Is it a matter of temporary replacement or is it a defined project with an agreed result?' central." She continues: "HeadFirst, together with the Client, has a signaling function to assess and ensure that an assignment - before and during execution - is suitable for an Independent Professional. In cases of doubt, HeadFirst keeps a close eye on the situation and we think along in detail about a better interpretation. It is important that clients are open about all relevant facts and circumstances. Of course Independent Professionals are also tested to make sure that they are characterized as real entrepreneurs."
DBA Scorecard: Risk-free hiring of external professionals

In July 2018, the Cabinet announced the company visits of at least 100 Principals. In the second progress letter in November, they informed that they have made the selection of Principals and have already conducted the majority of the company visits. Further details of enforcement will not be known until later. Until there is a full-fledged successful replacement for the DBA Act, we anticipate that large risk-averse Principals will be looking for certainty.
Traffic light model
HeadFirst offers solutions to this: by using its own agreement, approved by the Belastingdienst, combined with a set of measures and controls at ourselves and Clients. Part of this is the DBA Scorecard. A tooling that determines whether an independent professional can be hired for an assignment or whether there is a relationship of authority, which makes this not wise under the current DBA Act. This is tested on the basis of 20 questions in which the traffic light model is central:
- Green > hiring is possible because there is clearly no relationship of authority.
- Orange > hiring is possible, but there are indications of a relationship of authority. Monitoring of the actual situation is thus necessary.
- Red > hiring not possible, as there is clearly a relationship of authority. HeadFirst can offer alternatives in this case, such as a payroll construction or adjust the circumstances of the role - where possible.
Optimal DBA compliance
Mediq, one of the largest providers of healthcare solutions in the world, was the first client to embrace the DBA Scorecard, thus relieving them of the risk-free hiring of external professionals. After Mediq engaged HeadFirst to guide it in the process to optimal Wet DBA compliance, the traffic light model was also applied to them. During the HeadFirst Insights Event "Risk Joy" on October 30, 2018, this client case was explained based on results it has given them:
- Complete control over the hiring of Independent Professionals.
- Awareness among Principals (HR and hiring managers): what roles can be performed by an Independent.
- Awareness among self-employed: focus on being an entrepreneur, avoid the appearance of a relationship of authority with the Principal.
- The hiring of Independent Professionals conforms to the current frameworks of the legislation and the organization thus demonstrates that it is not a malicious Principal.
"HeadFirst has found a good form of risk hedging with us in partnership. We are very satisfied with that."
Govert Laninga, Manager HR Services Mediq
Want to know more about our DBA Scorecard? Request a consultation at info@headfirst.nl.