News

The self-employment (‘ZZP’) dossier

On 9 February 2018, the Minister of Social Affairs and Employment announced in a letter to the Lower Chamber (Dutch = ‘Tweede Kamer’) that the enforcement of the Employment Relations Deregulation Act (Dutch = ‘DBA’) will be further suspended until 1 January 2020. This means that until that time no penalties will be imposed on clients and contractors if it’s subsequently found that there is an employment agreement. The Government will, however, expand the possibilities for the enforcement of malicious parties as of 1 July 2018.

On 15 December 2017, the Minister of Social Affairs and Employment sent a letter to the Lower Chamber containing the outlines of a new act to regulate self-employment entitled “Towards a new balance in the employment market”. On the self-employment dossier, the Minister writes among others:

• Through the introduction of the client declaration, clarity will be given to clients about the employment relationship. The client declaration can be obtained after completing a web module;
• In the web module, ‘authority’ as an employment agreement criterion will be explained as much as possible. Thus, the client will obtain certainty about whether or not owing income tax and employee insurance scheme premiums;
• The cabinet is also taking measures to insure that: (i) at the bottom of the labour market, pseudo self-employment will be prevented; and that (ii) professionals at the top of the labour market will get more freedom of action.
• The aim is for the measures and the client declaration to take effect on 1 January 2020

Changes to the Minimum Wage and Minimum Holiday Allowance Act (“Wet Wml”)

The outlines of the most relevant changes effective 1 January 2018 are:

• The minimum legal wage is a gross monthly EUR 1.578,00 for employees from the age of 22, being employed full-time and excluding holiday allowances;
• The legal minimum wage now also applies to extra work (the hours in excess of the contract). The overtime pay is also subject to holiday allowance.
• The legal minimum wage also applies to an ‘agreement with performance pay’ ( a contract for works or e.g. services), but does not apply to those who are self-employed or to home-based childminders.

New ceiling to the legal transition compensation

Effective 1 January 2018, the legal transition compensation is put at a maximum gross of EUR 79.000, unless the employee’s gross annual salary is higher. Then, that will be the maximum.

Adjustment maximum daily wage

Effective 1 January 2018, the maximum daily wage is put at EUR 206,26 gross.

The AOW-entitlement age raised (AOW = state pension)

Effective 1 January 2018, the AOW-entitlement age is raised to 66.