The DBA Act

The Assessment of Employment Relationships (Deregulation) Act (“DBA Act”) has been in force since May 2016. However, there has been a lot of fuss about this law recently. For example, it will be abolished in the future and replaced by another regulation. For now, this is not yet the case and there is for many self-employed persons much uncertainty about this law and its replacement. On this page we keep track of how the law and its replacement affects you as a self-employed person or client.
The DBA Act was introduced because it had to tackle false self-employment at the bottom of the market. These sham self-employed persons would be a danger for the market and the national treasury. This is because self-employed persons have many tax advantages. Because of this fact, the Tax and Customs Administration asked to look more critically at these self-employed persons. In addition, the 2014 cabinet felt that too many flexible workers were being used by companies. For example, the cabinet believed that companies were avoiding ‘regular employees’ because they could use a self-employed person in the same position with more benefits. For example, they did not have to pay any wage tax.
The DBA Act, or at least the model agreements, were reviewed by the Boot Committee upon request. These model agreements were the general versions prepared by the Tax and Customs Administration. However, after analysis (based on employment law) it turned out that there is no good criterion for testing these agreements. In addition, legal equality is not guaranteed either. All in all, the DBA Act does not meet the objectives that were set for it. All of this of course creates a lot of uncertainty and uncertainty for self-employed persons and clients, because they have to check even more carefully whether the model agreements are good enough and in accordance with the law. Because of this lack of clarity, the law will be replaced again. This has been confirmed by Minister Koolmees of Social Affairs. In a letter to the Prime Minister, he stated that the replacement of the DBA Act must take place in 2020.
The law, as it stands now, ensures that model agreements must be made between the self-employed person and the client. These are model contracts and are approved in advance by the Tax and Customs Administration. In such a model, contractual conditions between the client and the taker are described in such a way that no employment relationship arises.
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Even though the DBA Act is going to be replaced, that does not mean you do not have to take it into account anymore. The law will not be enforced until there are criteria to clarify what exactly a focus self-employed person is. That means no fines until July 2018, but enforcement will be applied to ‘bad faith actors’. This is someone who intentionally deviates from the law.

As mentioned earlier, the general agreements of the Tax and Customs Administration are not sufficient. These contain sections shaded in yellow that must be included, but as a self-employed person or client there are certainly more subjects that must be included than the agreements of the Tax and Customs Administration make it seem.

We have already discussed the replacement of the DBA law. In the near future this law will no longer exist. The replacement is a client declaration by means of a web module and an opt-out scheme which should counteract sham self-employment. These modules and regulations will be developed in cooperation with social partners and sector parties. This stems from the coalition agreement and must develop a clearer concept. This process will take place as of 2018. The final product must be active from January 2020.
Because of the changes the DBA Act entails, we have started discussions with our sector organisation for intermediaries and brokers (BOVIB) and the Tax and Customs Administration. This resulted in the approval of a model agreement that suits our services. In concrete terms, this means that we have switched to the use of model agreements, for both freelancers and the client. We will continue to use these approved agreements until the replacement of the law becomes reality.

Besides that, Maandag® IT is Bovib certified. Read more about Bovib and their quality mark.

Bovib Keurmerk
As intermediary we want to keep all parties involved as well informed as possible about the changes in this field. To achieve this we place updates on the DBA Act and its replacement on our news page and our social media: LinkedIn. If you have any questions about DBA Act, please contact us.

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