Friday, June 22, Minister Koolmees of Social Affairs and Employment informed the House of Representatives through a letter, titled "detailing measures for self-employment", about the progress of the replacement of the DBA Act. HeadFirst outlines the main points for you.

No easy task
In recent months, the cabinet has been busy working out the measures to replace the DBA Act, which you can read more about in our white paper. "The cabinet has made steps forward in this, but also still has work to do," Minister Koolmees reported in his letter. "Making new legislation around zzp is no easy task. That was clear when the DBA Act was introduced, when the coalition agreement was drawn up and it is also apparent now. But new laws and regulations are needed unabated."

Follow-up Actions
The Cabinet is taking several follow-up actions in the coming months:

The measures for "the top and bottom of the labor market" are being further developed. "However, several bottlenecks have been identified in this process which are being addressed. In the fall, the Cabinet will come up with a further proposal."

An external study is currently being conducted on rates, rate structure and characteristics of self-employed workers and their assignments. "The results of this research will be used to arrive at a demarcation of the groups covered by the low-rate employment contract and the opt-out. Effects of such demarcation on the labor market will also be identified."

- The Cabinet will enter into talks with the European Commission on the protection of low-rate workers. "Knowing that this issue plays out in more countries".
- The Cabinet is examining in what way demarcation of the group of contractors "at the top of the market" - to whom the opt-out will apply - is necessary. "After all, if it is already established for the client and contractor that the contractor performs the work as a self-employed person, then an opt-out is not necessary."
- The Cabinet will examine whether the proposed web module is 1) feasible and enforceable, 2) provides certainty to entrepreneurs and their principals, and 3) does not impose an unnecessary administrative burden.
- On Sept. 3, 2018, the Cabinet will organize a follow-up to the kick-off meeting with field parties on Jan. 24, 2018, in which it will again discuss how to develop the measures in the best possible way.
- "The emergence of new forms of working relationships between client/employer and contractor/employee raises fundamental questions about the labor market, labor law and social security. In order to be prepared for the future, an independent commission will be set up to investigate these issues, including the possibility of introducing an enterprise contract and revising the definition of the temporary employment contract."

Important dates
Some dates that were already known remain:

- Enforcement on the DBA Act will remain suspended until at least January 1, 2020, with the exception of malicious parties.
- From July 1, 2018, enforcement will no longer be limited to the most serious cases of malice, but will be broadened to all malicious persons. More on this below.
- By January 1, 2019 at the latest, the Cabinet will have clarified the criterion of "authority.

Enforcement: 100 principals to be visited
On July 1, 2018, the Tax and Customs Administration will publish a plan that fleshes out the supervision of labor relations from this date. The details are already known in outline. For example, the Tax and Customs Administration will plan company visits with principals, during which it will discuss their working methods with contractors. "The Tax Authority will select at least 100 principals to visit. This selection includes both principals who have submitted a model agreement, which may or may not have been approved, and principals who have not yet been in the picture of the Tax Authority in this context. From each category, a number of clients are selected that the Tax Office will visit. The selection is made in such a way that various industries and sectors are visited. (...) The focus is on those principals who have not yet been in the picture (ed., this seems to mean 'principals who have not submitted a model agreement to the Tax Office for approval') or who are not working with an approved (model) agreement."

"Depending on what the Inland Revenue determines in its discussions with - and visits to - clients, the supervision plan will be adjusted in the interim. This may mean, for example, that other or different types of clients are selected. Supervision takes place where there are the greatest risks of false self-employment. (...) If, during its supervision, the Tax and Customs Administration suspects (fictitious) employment and malicious intent, it will launch a further investigation. (...) The plan is to have the visits completed by the end of 2018."

Are you curious about Minister Koolmees' complete letter? Download it here.