Freelance dossier: Assessment of Employment Relationships and Legal Presumption (Clarification) (VBAR) bill and Mandatory Insurance for the Self-Employed (Loss of Income due to Incapacity for Work) (BAZ) bill

VBAR legislation: focus on legal presumption, clarification section scrapped

The explanatory memorandum to the report on the VBAR bill has now been submitted to the House of Representatives. In this document the Minister for Work and Participation, Thierry Aartsen, answers questions about the introduction of a presumption of law in an employment contract based on an hourly rate. 

The government has opted to remove the section clarifying employment relationships from the bill by means of a memorandum of amendment. This provision was intended to clarify under law when work is carried out as a self-employed person or as an employee but, in the Minister’s view, this led to too much uncertainty. Questions relating to this matter therefore were not dealt with in any detail. The government aims to restore calm with this decision while also allowing more time for the further development of the forthcoming Self-employed Persons Act (Zelfstandigenwet). The amendment to the bill has no impact on the enforcement of the Assessment of Employment Relationships (Deregulation) Act (DBA) by the Tax and Customs Administration, which will continue as before.

However, the memorandum does address the need for the legislation, how the presumption of law operates and the consequences of removing the clarification section in terms of  the Recovery and Resilience Plan (HVP). The Minister further emphasized that the presumption of law only has an impact under civil law. The tax authorities do not rely on the presumption of law and have their own duty to investigate when working relationships are assessed for tax purposes.

The bill will take effect immediately upon coming into force. This means that workers will be able to invoke the presumption of law from the date of the bill’s entry into force, even if their employment relationship began before that date. If it is ultimately established that the relationship is one of employment (under a contract), that finding applies for the entire duration of the employment relationship.

The removal of the clarification section does have consequences in the European context, however. There is a risk that the Netherlands could miss out on around €600 million in European Recovery and Resilience (HVP) funding as a result. The government is in consultation with the European Commission on this matter.

At the same time the government is keen to press ahead with the presumption of law for low-paid self-employed workers. These are self-employed people paid an hourly rate of less than €38 (as of 1 January 2026). If they invoke the presumption of law, then it is up to the client to show that that there is no employment contract. If that cannot be done, the situation is then one of bogus self-employment and the self-employed person is entitled to the corresponding employment law protections.

BAZ legislation: mandatory occupational disability insurance for the self-employed

Alongside the VBAR, the Mandatory Insurance for the Self-Employed (Loss of Income due to Incapacity for Work) (BAZ) bill has also been submitted to the House of Representatives.  This legislation introduces a compulsory disability insurance for the self-employed.

The proposed system has a dual structure. In principle, the self-employed are covered by the public scheme but - under certain conditions - they can take supplementary private insurance or switch entirely to private insurance through an opt out. The group of insured persons comprises all natural persons who have not yet reached state pension (AOW) age  and who receive profits from a business in the meaning of the Income Tax Act 2001, whether they employ personnel or not. 

The mandatory insurance will not apply to those earning income from other activities, directors/major shareholders and partners working in the business. The contribution percentage will be about 5.4%. The contribution and benefit base is derived from the business profit before the business owner’s tax allowance and SME profit exemption, up to a maximum income subject to contributions. There is a contribution-free allowance for self-employed people who also earn income from employment, provided that they are already entitled to disability benefit at the minimum wage level under the Work and Income (Fitness for Work) Act (WIA).

Transition arrangements are envisaged for existing occupational disability insurance schemes. Plus, the contributions will be tax deductible as an expense for income provision, in accordance with the standard income tax system.