June 25, 2024
Minister Van Gennip of Social Affairs and Employment has submitted the revised "Clarification of Employment Relationships and Legal Presumption" (VBAR) bill to the Council of State for review. This step follows an online consultation phase that prompted various changes to the proposal.
Purpose and sturcture
The bill aims to provide clearer guidelines for assessing employment relationships by introducing a new framework through amendments to Article 7:610 of the Dutch Civil Code (BW) and the addition of a new Article 7:610a BW. The central question in this framework is to determine whether the nature of the working relationship leans more towards employment or self-employment.
Criticism and adjustments
During the consultation phase last year, the proposal received significant criticism. The Advisory Board on Regulatory Burden (ATR) argued that the bill might increase rather than decrease regulatory complexity for individuals and businesses, and that it would not effectively reduce false self-employment.In response, the Ministry's press release noted improvements to the assessment framework to address these criticisms. Specific changes include the removal of "core activities" as an indicator of employment, which is expected to better emphasize genuine self-employment.
Hourly rate
A notable feature of the revised bill is the introduction of a legal presumption of employment for work performed at an hourly rate up to €32.24. This threshold was adjusted after consultation, with the minister opting to round it to whole euros in future considerations.The precise impact of these revisions remains to be seen, as the full text of the modified proposal has not been made public. The Ministry, however, believes that these changes strike a better balance and respond more effectively to stakeholder feedback.