In early 2018, Minister Koolmees extended the suspension of enforcement on the DBA Act until 2020. That postponement still does not appear to be sufficient. He announced this on Monday, November 26, through a second progress letter to the House of Representatives. Koolmees suspects a delay of one more year, pushing back the revised DBA Act to January 2021.

'Bottom of the market' solutions at odds with EU law
Koolmees held talks with the European Commission earlier this year, from which he concluded that the measures to protect low rate workers may be at odds with EU law. In the letter, he wrote, "in particular, the conversion of the contract of assignment of the self-employed covered by the Low Rate Employment Contract (ALT) into an employment contract creates tension, as this is likely to infringe on the freedom of establishment (Art. 49) and the freedom to provide services (Art. 56) of self-employed workers in the EU Treaty on the Functioning of the European Union (TFEU)." Therefore, in addition to further elaborating on the measures, the Cabinet is also focusing on exploring "alternative routes.

The measures for "the bottom of the labor market" will be further elaborated and turned into legislation in the coming period. "The aim is to put these out for Internet consultation in the first half of 2019." In the spring, the Cabinet will inform the House of Representatives about this.

Opt-out for 'top of the market'
The measure for "the top of the labor market," the so-called opt-out, is included in the same Internet consultation. "In the letter of June 22 last, it was indicated that the Cabinet will examine the way in which the group of self-employed entrepreneurs will be delineated for whom the opt-out applies and that the further elaboration will also look at the consequences for employee insurance rights." No new information is added in the second progress letter.

'Authority' criterion on track
Koolmees did take steps in other areas, including the 'authority' criterion. As previously agreed in the coalition agreement, the criteria for a relationship of authority will be clarified. To this end, a number of scientists have been asked to write a position paper, which again shows that clarifying authority is no easy task. "However, by working with indications for authority, contraindications for authority and examples, it is possible to clarify the authority criterion. This clarification of the authority criterion will be included in the Tax and Customs Administration's Payroll Tax Handbook." This should give clients guidance on how to self-assess whether an employment relationship exists.

Research into operation of web module continues
According to the progress letter, the elaboration of the web module is also on schedule. It is expected to be ready by the end of 2019. However, the letter also reveals that the Cabinet is still investigating whether the proposed web module 1) is feasible and enforceable, 2) offers certainty to entrepreneurs and their principals, and 3) does not involve an unnecessary administrative burden. Koolmees describes the current state of affairs as follows: "A questionnaire has been developed that asks as many relevant questions as possible for the assessment of the employment relationship. [...] The coming months will be used to elaborate this extensive questionnaire into a manageable decision tree, in order to see whether a well-considered judgment can be reached with this even within the aforementioned balance." Based on this, the actual arrival of the web module still seems all but uncertain.

Tax authorities energetic with company visits
On July 1, 2018, the Tax and Customs Administration published the Labor Relations Supervision Plan, which announced the company visits of at least 100 principals. The Cabinet informs that the selection of principals has already been made and the majority of the company visits have been carried out. However, Koolmees is not releasing much about this yet. "No conclusions can yet be drawn from the first feedback on the visits." More will also not be known about the further details of enforcement until later. "The moment the elaboration of the measures is more advanced and there is insight into whether and how an optimum between the preconditions has been found with the web module, you will be informed about the phasing out of the enforcement moratorium."