A warning can be given as early as the first offense, but its impact depends on who gives the warning, the severity of the offense and even the external circumstances. You understand: there is no one-size-fits-all answer. This begs the question: what is the value of a warning from the Tax Office for clients who, often unknowingly, employ self-employed workers in the "wrong" way? Marion van Happen, CEO of HeadFirst Group, responds to the latest developments and the previously passed motion.

As of Jan. 1, 2025, the enforcement moratorium will expire, and with it "the designation," an instrument used by the Internal Revenue Service to give clients the opportunity to adjust the working relationship with a self-employed person within a certain period of time. During the debate on the zzp dossier on Sept. 12, several MPs expressed concerns about the expiration of this instrument. This led to an adopted motion by MP Aartsen (VVD), supported by several groups, on the 'warning' instrument. At first glance, this appears to be a new instrument, but it is important to realize that warnings have long been part of the inspectors' toolbox. The difference is that, thanks to the adopted motion, the warning is likely to play a more prominent role in enforcement policy.

The power of warnings

Although a uniform warning is difficult to define, warnings are always customized and contain reasonableness. Van Happen says the following about this: "The Tax Administration must give the market room to learn, adapt and engage in dialogue. Warnings should not degenerate into a purely bureaucratic tool, but should give organizations the opportunity to work seriously on improving the correct assessment of an employment relationship, without immediately being confronted with fines or additional taxes. Active cooperation with the market is therefore a key focus within the Enforcement Plan for Labour Relations of the Tax and Customs Administration. This cooperation between government and market is something we warmly welcome and we take our responsibility where we can."

Collaboration is key

The recently published document 'Explanation of Assessment of Labor Relations. Decision and consideration framework' makes it clear once again that the practical facts and circumstances on the shop floor are leading in assessing the employment relationship. All relevant facts and circumstances must then be considered and assessed as a whole. This is complex and does not always provide the clarity one is looking for. It is therefore not surprising that in recent weeks much has been about the so-called "soft landing," whereby the Tax Administration should not immediately "punish" organizations without first giving them the opportunity to improve the situation.

 

Van Happen: "The warning should in fact be an invitation to improvement, whereby clients can work step by step on compliance with the rules surrounding the hiring of self-employed workers. Not every violation requires harsh sanctions; often dialogue and adaptability is sufficient. When warnings are used to encourage this learning process, this instrument within the enforcement policy can contribute to a fairer, more transparent and workable market, with sufficient room for flexibility and independent entrepreneurship.

A constructive collaboration

At HeadFirst Group, we see the warning as an opportunity to work together with the tax authorities to create a market in which "mistakes" are part of the learning process, without immediately leading to financial consequences. By focusing on customization, reasonableness and communication, we can create a labor market in which both clients and intermediaries and self-employed are compliant and successfully cooperate with each other.

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Questions about this? Please contact us.

Sem Overduin
Public Policy & Affairs Manager
Sem.Overduin@headfirst.nl

Oifik Youssefi
Public Affairs Officer
Oifik.Youssefi@headfirst.nl

Maaike van Driel
Head of Legal
Maaike.vanDriel@headfirst.group

Thomas ten Veldhuijs
Senior Legal Counsel
Thomas.tenVeldhuijs@headfirst.nl