Since the introduction of the Deregulation Assessment Working Relations Act (DBA) in 2016 to replace VAR certificates in the Netherlands, it has now become even more important for the entire supply chain (Client > Recruitment Agency > Contractor) to ensure and understand if engagement of a self-employed professional, freelancer, ZZP (zelfstandige zonder personeel) or BV (besloten vennootschap) is an appropriate engagement for the temporary assignment. This is opposed to an individual needing to be treated as an employed type of worker for tax purposes. Misclassification can lead to heavy fines and risks for all within the supply chain under Dutch Chain Liability.
Assessing if a Candidate Can Work as a ZZP for the Contract
Similar to the majority of countries across Europe and the UK, the determinations for disguised self-employment typically consist of Control, Direction and Supervision.
- Does your contractor have an obligation to perform personal labour?
- Is there a relationship of authority between you and your contractor?
The KvK (Dutch Chamber of Commerce) has released a pilot questionnaire to help clients determine the status of the contractor sourced for the assignment and which engagement is viable – BV/ZZP or a Temporary Employment engagement. More information regarding the ‘Web Module Employment Relationship Assessment’ and the assessment link itself can be found here to make this assessment. It is worth noting that this assessment is currently for advisory purposes only and not legally binding, but it should give a solid gauge on how best to proceed.
Paying Temporary Workers for Assignments Determined to Have an Employed Type Relationship
If the assignment has been deemed within the realms of employed type work, a ZZP or BV engagement is not viable for the temporary assignment and you need to therefore utilise a Temporary Employment Agency or Payrolling Company to pay the individual. When doing so there are checks you will want to perform to ensure the entity acting as the temporary employer or payroll company for the worker are compliant.
- Check if the temporary employer or payroll company are SNA certified (hold a NEN Certificate).
- Pay a proportion of the contractual payments to a G-Account. This is a blocked tax account of which funds can only be paid to the tax authorities, giving further reassurance of liabilities being paid on the contractor’s earnings.
- Make sure that comparable elements for the payments to the contractor are being met by the temporary employer or payroll company.
More information regarding the difference between a temporary employment agency and a payroll company as well as the comparable elements that need to be adhered to can be found here.
Should you perform a review of your current assignments within the Netherlands and find that ZZP or BV engagements are in place, wherein fact temporary employment is needed, please feel free to reach out to one of the Liberty Bishop International team to discuss our NEN-Accredited Services and how we can provide a compliant employment solution.