Avoid misclassification as a company or freelancer with an Employer of Record

After more than 40 years in recruitment, I have seen countless changes in how businesses and freelancers work together. There’s a lot of misunderstanding around Dutch labour law on self-employment, especially under the DBA Act (Wet deregulering beoordeling arbeidsrelaties).

The Dutch tax authorities are paying closer attention to ensure that freelancers are genuinely independent and not misclassified as self-employed when they are effectively employees. Many people are under the impression that the DBA Act is a new ruling, when in fact it has been in place since 2016. What has changed is much stronger enforcement.

Here is why it's becoming a problem, and what businesses and freelancers can do about it. 

The false self-employment problem

If a freelancer is working almost exclusively for one company, under that organisation’s direction and control, this may be considered disguised employment. And it's not just a risk for the freelancer. Businesses (often unintentionally) might find they fall under this category and are left to face the consequences of their mistakes.

An example: Your business wants to expand in the Netherlands, so you decide to hire a local self-employed sales rep. You work together full-time, and your plan is to do this long-term. This means that you are likely the sales representative's only client.

One of the key ways the tax office determines if a ZZP'er (zelfstandige zonder personeel) is truly independent is by checking the number of clients they have. If there are fewer than three, they're in the danger zone, and the authorities will view this business relationship as bogus self-employment.

Luckily, 2025 is a transition year, and people still have time to make sure their affairs are in order. From 2026 onwards, audits and fines will be far more common. One way you can avoid false self-employment and fines is through the EoR model.

Talk to Blue Lynx about whether an Employer of Record could help you

What is an Employer of Record?

An Employer of Record (EoR) is a third-party business that lawfully hires employees on behalf of another company and takes ownership of all employment-related duties. It handles payroll, taxes and contracts.

In the meantime, your work remains the same, but all administrative and legal obligations are handled by the Employer of Record, ensuring the arrangement fully complies with Dutch employment laws.

How EoR solves freelancer misclassification

By transferring the self-employed professional to an EoR, the freelancer gains employee status, meaning they are fully compliant with Dutch labour law, while the client still benefits from their skills and flexibility.

This arrangement fully removes any ambiguity. There is no grey area about whether someone is truly self-employed or not, as the EoR structure makes that crystal clear.

You get to reap all the benefits

For freelancers, it also means access to benefits they would otherwise miss out on, such as paid sick leave, pension contributions and reduced administrative stress. For businesses, it means peace of mind: you can work with talented professionals without worrying about a compliance trap, false self-employment, fines and post-assessment.

As someone who has spent decades in this field, I know first-hand that the best working relationships are built on clarity, trust and compliance. The Employer of Record service offers all three.