DBA Act: employee or self-employed

As of January 2025, the tax authorities will actively enforce the DBA Act, making the distinction between employees and self-employed workers crucial. What exactly does this law entail, and how do you determine whether someone is genuinely self-employed? We explain which factors play a role in this, such as authority relationships, working hours, commercial risk, and the duration of assignments.

With stricter rules against false self-employment, it's essential for both clients and freelancers to properly map this out. Would you like to gain more insight into your collaboration with self-employed workers? We've clearly outlined how you can determine whether someone is a genuine freelancer or should possibly be regarded as an employee.

What exactly does the law entail?

The DBA Act (Deregulation of Assessment of Employment Relationships) was drawn up to determine whether someone should be considered an employee or self-employed. This is done by assessing the working relationship against various criteria. The purpose of this law is to combat false self-employment and to prevent clients from unknowingly circumventing tax obligations or employee rights.

With the introduction of the law, the responsibility lies with clients to assess whether there is a self-employed worker or an employee. If it later turns out that an employment relationship exists, this can result in back payments of payroll tax, social security contributions, and possible fines.

Based on the criteria below, it can be determined whether there is (false) self-employment:

Authority relationship: an employee follows direct instructions and is supervised by the employer. A self-employed worker, on the other hand, has the freedom to organize the work according to their own judgment, for example by determining their own working hours, methods, or location.
Nature and duration of activities: Employees generally perform structural tasks that are part of the business operations, while self-employed workers work on a project basis. Their involvement is often temporary and focused on specific assignments.
Working hours and working methods: Employees have set working hours and methods they must adhere to. Self-employed workers determine their own working hours and methods, as long as the agreed result is delivered, which gives them significantly more freedom.
Integration into the organization: Employees are part of the organization and make use of internal facilities and collaboration within teams. Self-employed workers generally work externally and independently, without access to employee benefits such as pension schemes or company facilities.
Personal performance of work: Employees generally carry out the work themselves and cannot easily outsource it. Self-employed workers, on the other hand, have the option of having tasks carried out by others without this affecting the assignment.
Contractual relationship: Employment contracts for employees are less flexible and lay down matters such as holiday days, salary, and working conditions. Self-employed workers enter into flexible agreements in which they can negotiate their own rates and scope of work.
Remuneration: Employees receive a fixed salary from their employer. Self-employed workers determine their own rates, but also bear more financial risk.
Commercial risk: Employees run little financial risk and are guaranteed an income. Self-employed workers operate as entrepreneurs and are themselves responsible for their income and insurance.
Economic activity: Employees are financially dependent on a single employer. Self-employed workers often work for multiple clients, take their own initiative in acquiring assignments, and are responsible for their own economic success.