The DBA law in the Netherlands – a guide for freelance specialists

The Dutch Deregulation of Labour Relations Assessment Act, commonly known as the DBA law (Wet Deregulering Beoordeling Arbeidsrelaties), is a crucial framework for freelancers in the Netherlands. It aims to clarify whether a professional is genuinely self-employed or effectively working as an employee. Understanding this distinction is essential for tax, employment rights and legal obligations.

Understanding the purpose of the DBA law

The primary goal of the DBA law is to ensure that freelancers operate as independent contractors and that businesses do not misuse freelance arrangements to avoid employment taxes or benefits. It provides clarity for freelancers regarding their employment status, helping them establish their independence.

Key indicators of employment status

Under the DBA law, the relationship between a freelancer and a business is assessed based on several factors:

• Control and direction: if the client dictates how and when work is completed, it may indicate employment
• Substitution: a freelancer should be able to appoint a substitute without the client’s prior approval
• Tools and materials: freelancers typically provide their own equipment and bear the associated costs
• Economic risk: freelancers take on financial risks, such as non-payment for incomplete work

If these factors suggest dependency rather than independence, the relationship may be considered employment.

Consequences for freelancers

To maintain independent status under the DBA law, freelancers should:

• Draft clear contracts that outline the work nature and confirm their independence
• Work with multiple clients, ensuring no more than 70% of income comes from a single client
• Keep records of activities and maintain a separate business identity, such as a business bank account or Chamber of Commerce registration
• Have at least three clients per year or complete six assignments in three years, spread out and well-documented

Failure to meet these criteria may lead to tax authorities reclassifying a freelancer as an employee, resulting in penalties and loss of tax benefits.

Practical steps for compliance

Freelancers should take proactive steps to ensure compliance:

• Define scope and autonomy: retain control over how work is done, including hours and tools
• Limit meetings: attend only essential meetings and avoid performance reviews
• Substitute if needed: have a substitute ready for long-term absences
• Bill for hours worked: invoice only for time spent on assignments
• Maintain professional boundaries: avoid accepting gifts or participating in client social events

By adhering to these guidelines, freelancers can protect their independent status and operate successfully within the Dutch labour market.

How we can help

Understanding and complying with the DBA law can be challenging, but you do not have to navigate it alone. Our team specialises in helping freelancers maintain their independence while complying with legal requirements. Contact us today for expert advice and tailored solutions to support your freelance career in compliance with Dutch regulations.