Cindy advises national and international entrepreneurs and employers.
cindy.ting@russell.nl +31203015555A new law stipulates that self-employed persons earning less than 38 euros per hour are, in principle, deemed to be employees. What does this mean for contractors and their clients? What exceptions might there be to this legal presumption based on an hourly rate?
On 16 June 2026, the Dutch Senate approved the Bill introducing a legal presumption of an employment contract based on an hourly rate (Dutch: Wetsvoorstel invoering rechtsvermoeden van arbeidsovereenkomst op basis van uurtarief). This Bill is the only remaining part of the original Bill, the Act on Clarification of the Assessment of Employment Relationships and Legal Presumption (Dutch: Wet verduidelijking beoordeling arbeidsrelaties en rechtsvermoeden; VBAR)
The aim of introducing the legal presumption is to better protect low-paid self-employed workers against bogus self-employment. Bogus self-employment is a situation in which someone is hired as a self-employed person, whilst under employment law they should be in salaried employment. As a result of this arrangement, the self-employed person loses the right to protection against, for example, dismissal or continued payment of wages in the event of illness, which they would have had as an employee. As low-paid bogus self-employed workers are the most vulnerable group of self-employed people, it has been decided to introduce this part of the VBAR in the meantime, pending further legislation on the distinction between self-employed people and employees.
The bill introduces a legal presumption. This legal presumption means that a self-employed person earning less than 38 euros per hour is presumed to have an employment contract rather than a contract for services. This hourly rate is reviewed twice a year, in line with the minimum wage. The current amount of 38 euros is based on the reference date of 1 January 2026.
The burden of proof regarding the existence of a contract for services relationship lies with the client: they must demonstrate that there is no employment relationship. If they fail to do so, the self-employed person is regarded as an employee. They will then be entitled to all the rights and protection afforded to persons in paid employment. The legal presumption therefore makes it easier for low-paid self-employed people to claim employment status.
The hourly rate of 38 euros is not a strict threshold. Not only can the employer rebut this presumption, but self-employed persons with an hourly rate of 38 euros or higher may still be employees, provided they meet the criteria for an employment relationship. However, they cannot rely on the legal presumption and will have to provide evidence themselves that an employment relationship exists. The hourly rate alone does not, therefore determine whether or not an employment contract exists.
Only the self-employed person can rely on this legal presumption vis-à-vis the client. Authorities such as the Tax and Customs Administration, the UWV and the Labour Inspectorate cannot therefore rely on it if they believe that a contract for services is in fact an employment contract.
Now that the Senate has approved the bill, it is expected to come into force on 1 January 2027. The legal presumption applies to both new employment relationships and existing ones that are still ongoing at the time the law comes into force. Clients would therefore be well advised to check which contracts with self-employed persons with an hourly rate of less than 38 euros will still be in force in 2027 and to have them reviewed to ensure they meet the current criteria for the existence of a contract for services.
The government is also working on the Self-Employment Bill. Like the original VBAR Bill, this legislation is intended to provide greater clarity regarding the status of self-employed persons in general. This Bill must first be considered by the Council of State, the House of Representatives and the Senate before it can come into force.
Would you like to know whether the agreement under which you carry out work or have work carried out is a contract for services or an employment contract? Or do you have any other questions about employment law? We would be happy to assist you. Please contact us:
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