The government plans to strengthen the fight against fictitious entrepreneurship

It is no secret that some EMZ are registered only to reduce taxes - in fact, such entrepreneurs are actually employed. However, it is quite difficult to prove the fact of fictitious entrepreneurship: the legislation does not contain clear criteria by which one can determine whether a person is employed or really engaged in entrepreneurship. The government is preparing a bill that will finally define these criteria. The bill is called: “Clarification of the assessment of labor relations from the point of view of legal presumption” (Vergulijking beoordeling arbeids relatie en rechtsvermoeden). The new law should repeal the current one Labor Relations Deregulation Assessment Act (Wet Deregulering Beoordeling Arbeidsrelaties — DBA).

It is proposed to introduce two innovations that are most important for entrepreneurs.

First, the establish three clear criteria that will determine whether a person is employed or an entrepreneur:

1. If a person’s actions are controlled by the one who hired him for work, this is not entrepreneurship.
2. If the work performed or the person who performs it is built into the structure of the employer's company, then this is not entrepreneurship.
3. If all responsibility for the work and its consequences is borne by the one who performs it, this is entrepreneurship. Otherwise it is a job for hire.

The first two criteria characterize the possibility of fictitious entrepreneurship. The third becomes important only when one of the first criteria speaks of fictitious entrepreneurship. If the third and one of the first two are performed, then the person performing the work can be considered an entrepreneur. If both first conditions are not met, the person performing the work is an entrepreneur.

Second, the it is proposed to introduce a legal presumption of employment based on an hourly rate. If the employer pays the entrepreneur €32,24 per hour or less, then this is employment. This criterion will only apply to B2B entrepreneurs where the entrepreneur's client is another entrepreneur or company. If the client is a private person, the criterion will not apply.

The government argues that its proposals will not harm genuine entrepreneurs. Time will tell how the provisions of this law will actually be applied.

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