What rights do freelancers have in the Netherlands?

As an expat in the Netherlands, it may not be that easy to discern whether you are working as an employee or as a freelancer. This distinction has serious consequences for your rights under Dutch law, including dismissal protection, taxation and social security.

This article will explain the key differences between an employment contract and a freelance (ZZP) service agreement, why the label on your contract doesn’t always matter, and what it means for expats working in the Netherlands.

The differences between an employee and a freelancer

Under Dutch law, an employment contract affords employees a wide range of protections, including:

• Legal minimum wage
• Paid holidays
• Holiday pay (usually in the month of May or June)
• Wage payment during sickness (up to two years)
• Protection against unfair dismissal
• Unemployment benefits
• Additional rights through collective bargaining agreements (CAOs)
• A right to an indemnity in case of an irregular dismissal
• A right to unemployment benefits (WW) or disability benefits (WIA) 
• In many cases, a retirement scheme

A freelancer or independent contractor (ZZPer), however, is considered an independent business owner. Therefore, freelancers lack many of the rights legally afforded to employees, such as:

• A legal or collectively agreed minimum wage
• Paid holidays or holiday allowance
• Wage payment during sickness
• A right to redundancy pay in case of dismissal
• A right to unemployment and disability benefits

A freelancer will also not enjoy the same degree of protection against unfair dismissal as an employee. What happens when your client decides to terminate your contract will depend largely on the terms of your contract.

The positives and negatives of freelancing

 In general, the position of the self-employed is much less regulated than that of employees. Because of this, the self-employed:

• Are much freer in how they choose to shape their work and working hours
• Must pay for their own retirement scheme or disability insurance
• Pay lower social security contributions

Additionally, the self-employed enjoy special tax deductions for entrepreneurs (for example, the Zelfstandigenaftrek and Mkb-winstvrijstelling), allowing them to keep more of their gross earnings after tax.

There are major advantages and disadvantages to self-employment. On the one hand, a freelancer enjoys much less security and legal protection than an employee. On the other hand, working as a freelancer gives you more flexibility and independence in your work, while also resulting in lower taxes.

There are various reasons why you may choose the ZZP route over a regular employee relationship. It's a careful decision that will depend on your own personal situation as well as your personal preferences and goals. It is not all up to you and your client to decide, though, for reasons we will now explain.

Can a freelancer be treated as an employee?

Crucially, under Dutch law, the label of your contract does not decide your legal status. Even if your contract calls you a freelancer or contractor, a Dutch court will look at the objective reality of the working relationship.

The key question is whether you perform your work under the authority of another party. To answer this question, a Dutch court will look at the following: 

• How embedded your work is in the client’s organisation
• Whether you rely on one client for income
• The degree of freedom and entrepreneurship you actually have

If these factors suggest an employment relationship, you will legally be considered an employee, regardless of what your contract says.

Why this matters for expats

The consequences of such a reclassification can be significant:

• Freelancers may retroactively receive minimum wage, holiday pay, and dismissal protection.
• Employers may face retroactive payroll taxes and Social Security contributions.

For expats, this means that losing a "freelance" contract could still trigger employee protections under Dutch law.

Can you claim employee protections as a freelancer?

If you feel that this situation might apply to you, we suggest you ask yourself the following questions:

• Can you subcontract your tasks to someone else?
• Do you have multiple clients at the same time?
• Do you determine your own rates?
• Do you use your own branding, website or marketing?

If you answer “no” to more than one of these questions, there is a strong chance that you may legally be considered an employee under Dutch labour law, regardless of what your contract says. In that case, you could be entitled to employee protections.

Know your rights

For highly skilled expats in the Netherlands, understanding the distinction between being a freelancer (ZZP) and an employee is crucial. The legal reality may differ from what your contract states, and the implications, both financial and legal, can be significant. If you are unsure about your status or facing contract termination, seek legal advice to protect your rights.