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.