Research confirms: suspicion of employment greater with lower hourly rate self-employed worker

The labor market is constantly evolving. In particular, the position of the self-employed remains a topic of debate, both in society and in politics. The question of whether a person may be hired as a self-employed person is not always easy to answer. Recent research by SEO Economic Research offers new insights: by looking at the characteristics and hourly rates of self-employed workers with business clients, this research shows that many characteristics of employee status are found in self-employed workers with low hourly rates. They are more likely to meet criteria that qualify them as employees. These are interesting insights and results in the context of bill Verduidelijking Arbeidsrelaties en Rechtsverm presumption (VBAR).

More characteristics of being an employee at low hourly rate

The SEO study focuses on the characteristics and rates of self-employed workers and identifies the extent to which they exhibit characteristics of employment. The main findings are:

  • Self-employed workers with lower hourly rates are more likely to experience work-related management and organizational embedding, characteristics appropriate to an employment relationship.
  • Depending on the method by which the hourly rate is calculated, between 15 and 28 percent of self-employed workers could fall under a legal presumption of employment at a rate of 32.24 euros per hour.
  • In sectors such as construction, creative industries and business services, the risk of false self-employment is greater because many self-employed workers depend on one or a few clients.

 

The VBAR and the legal presumption of employment

The question of how to deal with a clearer distinction between employees and the self-employed is a recurring discussion in politics and society. The VBAR bill attempts to clarify the employment relationship on the basis of an assessment framework and by introducing a legal presumption of employment. The latter means that at an hourly rate of 33 euros or lower, it will be assumed more quickly that an employment contract exists. Although the VBA part of much criticism organizations, industry associations and political parties, the R (legal presumption of employment) has broad political and social support.

 

The SEO study shows that a significant proportion of those employed at low hourly rates are in a dependent and vulnerable position. This makes a proposal such as the legal presumption of employee status below a certain hourly rate a logical extension of the problems identified.

 

Sectoral differences and the importance of legal presumption

The risk of false self-employment is not equally high in all sectors. The SEO study shows that there are sectors where workers have structurally low hourly rates and these workers also show more indications of being employees. These sectoral differences underscore the importance of careful legislation and regulation. The legal presumption is a tool that can combat abuses, while leaving room for true entrepreneurs to remain self-employed. This is important to strike a balance between protecting workers with low hourly rates, on the one hand, and otherwise leaving room and freedom to be entrepreneurial.