Changes ahead for Dutch contingent hiring market on 1 January 2025: how to explain to non-Dutch speakers what they involve

The legal basis for them to do so lies in case law rather than in legislation as the statute law is still in the drafting stage. The Dutch government has extrapolated a list of non-binding criteria from this case law, which are mostly intended for information purposes. One key principle is that it will become a lot more difficult to hire an independent contractor for a position that typically involves a direct employment relationship. That said, organisations will still be able to hire independent contractors for specific, short-lived and clearly delineated projects that require a particular type of expertise.

It can be challenging at times to determine what exactly is the difference between an employee role and a project, what qualifies as short-lived, and what can be considered a particular type of expertise. Because there is no established statute law, it is primarily up to employers to interpret these criteria.

Yet, the consequences of misclassification after 1 January 2025 are potentially severe if the tax authorities were to conclude that workers qualify as employees rather than independent contractors and, as result, decide to impose additional tax assessments or financial penalties.

There has been plenty of media coverage of the changes in the Netherlands, so they will come as no surprise to organisations with a local presence. Even so, the changes are complex and confusing, and they can make us believe – mistakenly so – that there will be no room for independent contractors in the Dutch marketplace after 1 January 2025. The ZiPconomy website is packed with articles on how to navigate the new rules.

But how do you briefly explain the changes to a non-Dutch speaker who is unfamiliar with the freelance economy in the Netherlands and does not know the Dutch jargon?

No need to worry: Circle8, one of our partners, has put together an in-depth whitepaper in English. This well-presented and informative document elaborates in detail on the changes effective from 1 January 2025 and thereafter. To read the whitepaper, click here.