Legislation & politics

The European Commission wants the Netherlands to further cut tax credits for self-employed workers. It would be one of the two conditions to claim coronasteun from Brussels, mentioned the FD. This once again makes zzp'ers the subject of the political-social discussion about the labor market.

Politicians in The Hague see creating a more level playing field, including by phasing out the self-employed deduction, as one of the solutions to the proliferation of self-employed workers. We embrace the creation of a more level playing field. After all, every individual in the Netherlands - regardless of the form of work and employment relationship - is entitled to protection and security.

However, a helping hand from politicians is desperately needed for the self-employed with lower hourly rates and small financial buffers. This group benefits from protection, for example against the consequences of disability and unemployment. Nevertheless, due to the fixed amount of the self-employment deduction, self-employed people with lower incomes are hit harder.

Only 7 percent self-employed call themselves forced self-employed
A growing group of employed people - in their search for autonomy and challenge - are making the move to self-employment. Only just under 7 percent of the self-employed population call themselves forced self-employed. It is high time for a solution that supports needy self-employed people, but leaves the larger group of conscious self-employed people free to do business.

However, this must go hand in hand with collectivity, social security and modern solidarity. A basic social system is needed for all workers, regardless of their contract or legal form, with securities that move with the changes in their working lives. A substantial change from the current system, but much needed to future-proof the labor market.

To take the debate on the labor market to a higher level, facts and figures of self-employed people are needed. On Monday, November 8, ZiPconomy, ONL and HeadFirst Group will present a report with the aim: to map the diversity and heterogeneity of this group and contribute to a rational and factual debate.

Last Monday, outgoing Minister Koolmees of Social Affairs and Employment informed the Lower House by means of the seventh progress letter 'Working as a self-employed person'. In this letter special attention was given to the pilot results of the web module, the online tool with which clients can determine whether they can hire a self-employed person for a specific assignment. Within a short period of time, industry associations, zzp-interest groups and trade unions criticized the results. For further decision-making and possible continuation of the web module, the ball is in the new cabinet's court.

HeadFirst Group believes it is unwise to further develop the web module. In an earlier phase of the web module, legal experts already criticized the tool. Now the evaluation of the pilot shows that in 28.4% of the cases the web module cannot give an opinion on the nature of the working relationship. "Unfortunately, the web module does not provide the clarity and clarity that clients and self-employed workers have been asking for for years. A new cabinet would be wise not to further develop the web module. Implement real reforms instead of just sticking band-aids," said Han Kolff.

Current web module not suitable for intervention
In the letter, Koolmees announces that the questionnaire specifically intended for intermediary situations has not yet been completed. This means that the web module is not suitable for self-employed people who work through an intermediary. The most recent Self-Employed Labor Survey shows that about 8% of the self-employed category have assignments or clients through an intermediary. Should the web module actually be introduced, agreement on the content and form of a questionnaire for intermediary situations must first be found in proper consultation with intermediaries and industry associations. The Bovib, the branch organization for intermediaries and brokers to which HeadFirst Group is also affiliated, reports on its own website that the talks with the Ministry of Social Affairs and Employment are proceeding with difficulty.

Time for serious reforms
A new administration must get serious about labor market issues and challenges. "The web module should not create regulatory pressure and uncertainty. The upper end of the flex market, consisting of conscious and autonomous independent entrepreneurs, functions much better if laws and regulations really give room to do business. This group satisfactorily makes clear agreements with clients and intermediaries."

The evaluation of the pilot shows that in certain sectors, such as the hospitality, transport and construction industries, the likelihood of an "indicative employment" outcome is highest. These sectors employ relatively more vulnerable self-employed workers with lower hourly rates. "The SER's advice to enforce hiring agreements below €35 per hour more strictly is a good starting point. Supervision and enforcement should focus on sectors where abusive zzp constructions are used. Trust that at the top of the market there is professional and good cooperation between clients and independent professionals, where intermediaries play a role to work in accordance with laws and regulations."

Finally, Kolff argues for a broad coalition of societal parties to discuss and think about a basic social system for all working people, for example for the consequences of disability. Earlier research by HeadFirst Group has shown support for such a system among independent professionals. "We still embrace the idea of a basic social system for all employed people in the field of disability, as proposed by the Borstlap Commission and the Social Agreement of ONL, VZN and AVV. If we create certainties around the individual rather than the form of contract, then the 'pressure' on the qualification question will decrease." To create a more level playing field between employees and the self-employed, the government has already begun by further and accelerated phasing out the self-employment deduction.

On Monday, September 20, the outgoing Minister of Social Affairs and Employment and the outgoing State Secretary of Finance informed the House of Representatives about the state of affairs and the follow-up steps regarding the measures envisaged in the coalition agreement in the field of "self-employment. This letter pays special attention to the pilot of the web module and the question of what follow-up will be given to this online tool. Attention is also paid to the enforcement moratorium and other relevant measures are briefly discussed.

Web module pilot evaluation

On Jan. 11, 2021, the pilot of the web module, an online questionnaire that clients can fill out anonymously in order to get more clarity on the nature of the employment relationship, began. The web module is aimed at business clients who hire a self-employed person for a particular assignment. Over 6,600 completed the web module in full. The totality of the results were distributed as follows:

• In 33.9% of cases, the completed questionnaire provided an indication of employment;
• An indication of fictitious employment in 9.7% of cases;
• In 28% of cases, an off-duty indication;
• And in 28.4% of cases, no indication could be given.

The results of the web module differ greatly between sectors. For example, in the construction, hospitality and transport sectors, the outcome 'indication within employment' is many times higher in percentage terms than in the public administration and business services sectors.

It has previously been indicated that a subsequent cabinet must decide whether the web module will actually be introduced and, if so, what status the outcome will have (legal certainty or not). Prior to making a decision, a test will be conducted into the implementation consequences for both the variant in which the web module is only used as an information tool and the variant in which it must offer (more) certainty to principals.

Intervention questionnaire not yet completed

In a previous progress letter it was announced that a questionnaire will also be developed specifically for situations of intervention. In the latest letter, the ministers indicate that it has proved complex to draw up a questionnaire for these situations. For this reason, the questionnaire for intervention has not yet been finalized. The Ministry of Social Affairs and Employment indicates in the letter that it intends to continue discussions with representatives of the intermediary industry to further discuss the possibility of a web module for intermediary services. Nevertheless, the organizations involved AWVN, PZO, Bovib, NBBU and I-ZO have let it be known that there is no point in discussing this or other variants of the web module further.

Supervision and enforcement

The Tax Administration supervises the qualification of the employment relationship for payroll taxes. This supervision, as previously indicated in previous progress letters, is a complex matter. Effective enforcement first requires amending laws and regulations. More specifically, this means reducing the differences between employees and the self-employed (for labor law, social security and taxation) and providing more clarity on the qualification of the employment relationship.

Furthermore, it becomes clear - in line with the Grinwis motion from just before the summer recess - that the moratorium will not expire on October 1, 2021, but will run at least until October 1, 2021, and that enforcement will not be initiated pending further decision-making. The Tax Office does still enforce against malicious principals.

Progress on mandatory disability insurance for self-employed workers

The Cabinet has previously indicated that it embraces the Labor Foundation's proposal, provided that it can be designed in a feasible and affordable manner. The Tax and Customs Administration and the UWV previously criticized the plans in view of their complexity and (un)feasibility. Together with social partners, work is currently continuing on the elaboration and design of such insurance. Given the caretaker status of the Cabinet and the controversial declaration of this subject by the Lower House, further decision-making will be left to the next Cabinet.

In conclusion

The government's commitment in recent years has been clear; to give genuine self-employed people as much space as possible to do business while at the same time offering protection to vulnerable self-employed people. As became clear earlier, the proposals of a legal minimum rate for the self-employed and a self-employed declaration have not been realized.

On the other hand, the cabinet did take steps to create a more level fiscal playing field between employees and the self-employed through the initiated phasing out of the self-employed deduction. This means that the self-employment deduction will go down in steps to €3240 by 2036.

Access to training and development opportunities should also contribute to a more level playing field. It was announced on Budget Day that the Subsidy Stimulus Labor Market Position (STAP) will also be available to self-employed people. Working and non-working people can apply for a maximum of €1000 per person for education, courses and training.

Highly educated zpp'ers give the trust relationship with national politics, on a scale of one to ten, a 4.6. This is evident from research by HR service provider HeadFirst Group, in which over two hundred independent professionals (zp'ers) participated. Underlying the low score are reasons such as doubts about expertise and the feeling of not being appreciated and poorly represented. Han Kolff, CEO at HeadFirst Group, takes the responsibility to contribute to the restoration of this trust: "Give self-employed people an independent place in the SER and start an accessible conversation with all types of self-employed people in the Netherlands. We like to play the connecting role to bring both worlds closer together."

Political trust historically low
Earlier research by the Social and Cultural Planning Office showed that confidence in politics fell sharply in the first six months of 2021. The stalled formation, the handling of the corona policy and the political aftermath of the allowance affair were at the root of this. These are also reasons often mentioned among self-employed people.

What plays a much bigger role for self-employed people, however, is the feeling that there is insufficient representation in the decision-making process. They experience that the traditional polder parties, such as trade unions and employers' organizations, are mainly listened to. In addition, self-employed people are annoyed by the fact that all types of self-employed people are lumped together and that politicians in The Hague have the wrong image of self-employed people: 'calculating self-employed people with tax advantages' instead of 'hard-working, passionate self-employed people who consciously choose entrepreneurship'. Finally, self-employed people doubt politicians' dossier knowledge and their ability to solve labor market issues. The lack of clarity and impracticability of laws and regulations for the self-employed, the DBA law in particular, was often mentioned as an example.

Building trust
Although the relationship of trust is under pressure, Kolff sees prospects for restoring it. An important point, which is in line with the "Outline Document" of the VVD and D66, is the representation and independent position of zzp'ers in the Social and Economic Council. "This gives zp'ers a central place in the decision-making process, so that interests can be better heard," Kolff explained.

In addition, he believes it is desirable to bring self-employed people in direct contact with MPs to share and discuss their concerns, entrepreneurial choices and practical bottlenecks. This knowledge exchange will have a positive effect on the information position and knowledge level of politicians. "Our core task as a labor market platform and service provider is to connect. We also like to fulfill this task between self-employed people and politicians, so that we can have a constructive debate together about the future of the Dutch labor market and the role of self-employed people therein," Kolff said.

About HeadFirst Group
HeadFirst Group is a leading, international HR service provider and specialist in the professional organization of permanent and flexible labor. The organization offers a diversity of HR solutions: Managed Service Providing, Recruitment Process Outsourcing, intermediary services (matchmaking, contracting) and HR consultancy. An average of fifteen thousand professionals work daily for over four hundred clients in Europe, with which HeadFirst Group realizes an annual turnover of over 1.5 billion euros. The main brands of HeadFirst Group are the intermediaries HeadFirst, Between and Myler, MSP service provider Staffing Management Services and RPO and recruitment specialist Sterksen.

Note to editors
Read the entire report 'The political trust of the independent professional by the yardstick'here.

Do you have any questions or comments in response to this press release? Feel free to contact Bart van der Geest, manager of marketing & communications at HeadFirst Group, reachable at 023 - 568 56 30 or bart.vandergeest@headfirst.nl.

Last Thursday, the House of Representatives met for the last time just before the summer recess to debate outgoing State Secretary Vijlbrief (Finance). Around midnight, MP Pieter Grinwis (ChristenUnie) tabled a motion asking the cabinet to provide more clarity on the enforcement moratorium - the period of limited enforcement - and the DBA law in the near future. With a large majority in favor of the motion, the House signaled its support for the content of the motion and its desire to first have a "reasonable and enforceable alternative to the DBA Act" before starting enforcement on false self-employment. Vijlbrief wanted to clarify something on this: "The enforcement moratorium does not end in October. It runs at least until October and then we will see what we will do." This echoes that the limited enforcement will be extended until there is clarity on an alternative to the DBA law, a reassurance for clients, self-employed workers and intermediaries.

Unrest in media

In recent weeks, several reports appeared in the press about ambiguity surrounding the DBA law. ZZP Nederland and PZO sent a fire letter to Vijlbrief on June 17 to make a decision on the enforcement moratorium in the short term. Research by HeadFirst Group also showed that, because of the approaching end of the enforcement moratorium, clients started to act risk-averse and looked more critically at the hiring of independent professionals, thereby terminating assignments of self-employed professionals prematurely and making it increasingly difficult for self-employed professionals to find assignments. This unrest and uncertainty - especially now that the Dutch economy is back in the starting blocks - is far from desirable, for self-employed professionals, clients and intermediaries alike.

Good move by Vijlbrief

In any case, the enforcement moratorium of the DBA law will not expire on October 1, 2021. The government intends to wait for the results of the web module pilot before making a decision on the enforcement moratorium and the introduction of new laws and regulations. This is in line with the earlier progress letter "Working as a self-employed person," which indicated that "the phasing out of the enforcement moratorium will be linked to the introduction of new legislation, which provides more clarity about the nature of the employment relationship. The market will also be given sufficient time to get used to new measures.'

We are still waiting for a clear and enforceable alternative to the DBA law, but for now we are pleased that the Secretary of State has received the signals and has taken this decision. Han Kolff, CEO at HeadFirst Group, is satisfied and relieved: "From signals we received from clients and freelancers it became clear that people were really ready for clarity and decision making from The Hague. Our research emphasized this with facts and figures. It is a wise choice that the enforcement moratorium remains in place until more is clear about the results of the web module pilot and replacement legislation for the DBA law. This gives the market more time to get used to new measures, gives zzp'ers more certainty to do business and gives politicians time to consider how best to proceed with enforcement. Great that this peace is being created and that we can start building new laws and regulations together."

Over 60 percent of highly educated self-employed people support a basic social system for all workers in the labor market. This is evident from research by HR service provider HeadFirst Group, in which over 1,700 self-employed professionals (zp'ers) recently participated. A wide support compared to the support for a compulsory disability insurance (AOV) for self-employed, where just 70 percent feels nothing for it. It makes Han Kolff, CEO at HeadFirst Group, feel positive. "We embrace the idea of creating a more level social playing field. Every individual in the Netherlands - regardless of the form of work and employment relationship - is entitled to protection and security."

Last month, the SER issued the advice to create a social safety net for the self-employed for special and unforeseen circumstances. Self-employed people should contribute to this themselves. Kolff goes a step further and advocates a basic provision for all employed people, as proposed in the social agreement between ONL, VZN and AVV. "Don't make the zzp'er an exception, but offer a broad safety net. We are moving towards a labor market in which the work is central, not the contract or legal form. Therefore, it is important to create securities that move with the challenges and changes people encounter in their working lives."

Security at the level of individual
Kolff is fed into this by the opinions of self-employed people. Research by HeadFirst Group shows that especially in the field of disability a basic system scores high: 61 percent are in favor. Sickness and unemployment has fewer supporters, but is certainly not excluded with 41 and 24 percent. "Solidarity among self-employed people is high. Still, I was surprised by the number of self-employed people willing to contribute to a basic social system, for disability in particular. If in this way we can protect the needy self-employed and leave the rest free to do business, then we are really taking a step in the right direction. It is up to the new cabinet to pick up this gauntlet and get serious about this," Kolff stressed.

Support for compulsory AOV low
The SER also announced its adherence to the agreement in the Pension Agreement to make it compulsory for self-employed persons to have insurance against disability to prevent unfair competition and large income risks for individuals. In March last year, the Labor Foundation came up with a proposal for the implementation of compulsory AOV. This proposal drew criticism from self-employed individuals' organizations. The Tax and Customs Administration and the UWV also informed outgoing Minister Koolmees that they had doubts about the technical implementation. Yet it seems that the plan is not yet off the table. However, the government cannot count on the support of self-employed workers; only 30 percent are positive.

Half of self-employed workers have nothing arranged
Currently, half of the self-employed have covered the risks of occupational disability themselves - for example, through a private party or a mutual fund. The most important reason for self-employed workers to take out insurance is that they are unwilling (53 percent) or unable (21 percent) to bear the financial risk themselves. Another 16 percent cannot fall back on their partner's income. Of the self-employed who have not taken out disability insurance, 35 percent say they can bear the financial risk. Furthermore, one in five feels the costs do not outweigh the benefits and 11 percent consider the risk of disability low.

About HeadFirst Group
HeadFirst Group is a leading, international HR service provider and specialist in the professional organization of permanent and flexible labor. The organization offers a diversity of HR solutions: Managed Service Providing, Recruitment Process Outsourcing, intermediary services (matchmaking, contracting) and HR consultancy. An average of fifteen thousand professionals work daily for over four hundred clients in Europe, with which HeadFirst Group realizes an annual turnover of over 1.5 billion euros. The main brands of HeadFirst Group are the intermediaries HeadFirst, Between and Myler, MSP service provider Staffing Management Services and RPO and recruitment specialist Sterksen.

Note to editors
All outcomes of the study have been compiled into aninfographic.

Do you have any questions or comments in response to this press release? Feel free to contact Bart van der Geest, manager of marketing & communications at HeadFirst Group, reachable at 023 - 568 56 30 or bart.vandergeest@headfirst.nl.

More than half of highly skilled self-employed professionals are finding it harder to find assignments since the introduction of the DBA law in 2016, introduced at the time to better protect precisely vulnerable self-employed people. This is according to a survey by HR service provider HeadFirst Group, in which over 1,700 self-employed professionals (zp'ers) recently participated. "It is imperative that politicians immediately extend the current period of limited enforcement to prevent further negative consequences for highly skilled self-employed professionals and clients," stated Han Kolff, CEO at HeadFirst Group.

Lack of clarity about DBA law hinders more and more clients and self-employed workers
Since the introduction of the DBA law, there has been much to do about it. After its introduction the law was quickly frozen, because in a short time there was much unrest among clients, who started to hire fewer self-employed workers. Since then, new legislation has been worked on and, in the meantime, a limited enforcement policy applies. As the research of HeadFirst Group now shows, the negative effects of the legislation for self-employed workers are still present and even increasing.

More than 55 percent of independent professionals experience that clients look more critically at zp'ers now when hiring externally than they did a year ago, the survey found. Recent examples in the press of clients putting their zp hiring under strict scrutiny support this view. In practice, assignments for which clients are looking for an external professional are increasingly indicating "no self-employed person may respond to this assignment. This makes it more difficult for more than half of the self-employed to find assignments, it turns out. So currently hundreds of thousands of self-employed people are experiencing hindrance. This is in addition to the self-employed, nearly 40 percent, whose assignments have been terminated prematurely by the client in recent years due to concerns and lack of clarity surrounding the legislation.

Han Kolff, CEO at HeadFirst Group: "That clients are looking critically at hiring self-employed professionals for roles where perhaps someone in permanent employment would make more sense is good. But there is no reason to panic, as replacement legislation is going to come. However, the date of Oct. 1, 2021 - when the current limited enforcement ends - is getting closer, causing many organizations to tighten their belts around zp'ers. This was to be expected. Large clients are acting risk-averse, and blame them. The key lies with politics."

Solution: continue enforcement freeze
The negative consequences are twofold: self-employed workers see work evaporate and clients, who already have a hard time recruiting good professionals due to scarcity on the labor market, risk having to sideline an important target group with valuable knowledge. Han Kolff: "As an intermediary on the labor market we can adapt to legislation and customer requirements, but customers and self-employed workers - our customers - are directly affected by the current situation. We stand up for the interests of our clients."

The SER recently suggested maintaining below the EUR 30-35 limit. Kolff: "An excellent limit, which gives the professionals above it - and the clients who hire them - peace of mind and room to do business. My appeal on behalf of clients and freelancers: continue the current limited enforcement until there is new, clear legislation from a new cabinet. And get on with it now; the market has been craving that clarity for years."

About HeadFirst Group
HeadFirst Group is a leading, international HR service provider and specialist in the professional organization of permanent and flexible labor. The organization offers a diversity of HR solutions: Managed Service Providing, Recruitment Process Outsourcing, intermediary services (matchmaking, contracting) and HR consultancy. An average of fifteen thousand professionals work daily for over four hundred clients in Europe, with which HeadFirst Group realizes an annual turnover of over 1.5 billion euros. The main brands of HeadFirst Group are the intermediaries HeadFirst, Between and Myler, MSP service provider Staffing Management Services and RPO and recruitment specialist Sterksen.

Note to editors
All outcomes of the study have been compiled into aninfographic.

Do you have any questions or comments in response to this press release? Feel free to contact Bart van der Geest, manager of marketing & communications at HeadFirst Group, reachable at 023 - 568 56 30 or bart.vandergeest@headfirst.nl.

How to proceed with the DBA law? This is a relevant but complicated question that people in The Hague don't immediately have the answer to either. Rutte III's plans to replace the DBA law have not provided the clarity and clarity that the market has been waiting for for quite some time. The self-employment declaration for the top of the market and the minimum rate for the bottom of the market - partly due to a critical internet consultation in the fall of 2019 - have been prematurely defeated. As a consequence, only the web module remains within the zzp dossier. What are the plans for this? And what has happened in recent months?

Web module the only tool remaining

In the sixth progress letter "Working as a self-employed person," outgoing Minister Koolmees announced that he would continue with his plans to develop the web module and roll it out as a pilot. On January 11, 2021, the pilot - which will last about six months - actually started. From then on, clients can fill out the online questionnaire on an anonymous basis to get more clarity on whether they may hire a self-employed person for a particular job. The pilot is intended as an information tool for clients of self-employed workers; they cannot derive any rights from the results during this phase.

What is the web module again?

The Webmodule Beoordeling Arbeidsrelatie (WBA) consists of about forty questions. About the assignment itself, not about the contractor. After completing the questionnaire, there are three possible outcomes:

1. It is possible to work outside employment. The web module results in a "principal's declaration.
2. Indication of employment. This means that there are several indications that the assignment cannot be performed by a self-employed person. The advice is to employ someone or redesign the assignment.
3. No judgment is possible. Based on the answers given, it is not clear whether work is outside employment or employment.

Criticism of web module

In recent months there has been criticism - from various quarters - of the content of the web module. The web module is said to steer too much towards being an employee and indicators of self-employment have been omitted or underexposed. Several MPs have distanced themselves from the web module in its current form. Research by knowledge platform ZiPconomy shows that few clients are enthusiastic about the web module either. Over 30% do not plan to use the web module and about 10% do not even know what the web module is. In addition, it appears that experts and judges come to different judgments when the web module cannot provide certainty.

New cabinet: plans for 2021

Next summer, the outcomes and results of the pilot phase will be evaluated. A new cabinet will then take a decision on the further course of the web module and whether the tool can possibly be converted into legislation. Furthermore, the new cabinet will try to have a broad public conversation with interested parties about possible regulatory bottlenecks. Due to the corona crisis, these talks have come to a standstill and for now there is little movement in them.

Enforcement regarding labor relations will be phased in. October 1, 2021, at the earliest. The Ministry of Social Affairs and Employment has promised to inform the market in a timely manner about decision-making and relevant developments.

Finally, negotiations and consultations are currently underway in The Hague to eventually arrive at a new cabinet. The exact plans regarding the replacement of the DBA law will be discussed at the formation tables. The parties seem unanimous that it is high time for change and reform, but in what way and at what pace; there are different views and opinions. The CDA, PvdA and GroenLinks still see the permanent contract as the norm. D66 wants to reduce the fiscal and social differences between employees and the self-employed and the VVD wants a separate legal status for the self-employed in order to clearly enforce false self-employment. So which plans a measures will eventually make it into the coalition agreement is still a gray area.