An important way to prevent an assignment contract from turning out to be an employment contract after all is to use and correctly implement the model agreements on the website of the Dutch Tax and Customs Administration. However, from 1 January 2024, all models that partially or completely assume the possibility of substitution will expire. What does this mean for principals and contractors?
The Dutch Tax and Customs Administration states that in case of doubt as to whether there is salaried work, a model agreement can be used. Some of these models are intended, among other things, for a situation where a contractor is allowed to be substituted. In that case, a model agreement can be used that assumes “no obligation of personal labour” According to the Tax and Customs Administration, this is a contract of assignment so that the contractor will not be considered an employee.
Because, according to the Deliveroo-ruling of the Supreme Court, even the possibility of substitution can constitute an employment contract, the Tax and Customs Administration has decided that these models can no longer be used as of 1 January 2024.
However, since the Tax and Customs Administration already sets as a condition that the model agreement must be executed as agreed upon, it is questionable whether the Deliveroo-ruling will make assignment agreements prove to be employment contracts much more often in practice. Aside from the fact that the Tax and Customs Administration will exercise restraint in enforcing the Deregulation of Assessment of Employment Relations Act (DBA Act) until 1 January 2025.
However, it is clear that the existing model agreements in which substitution is possible can no longer be used as of 1 January 2024. This concerns four general models:
There are also a number of models that are industry-specific and based in whole or in part on the contractor’s ability to be substituted. These models also expire.
Principals will therefore have to replace their contracts based on these models by 1 January 2024 with contracts based on models that are still permitted. In practice, this will usually involve a model based on the absence of employer’s authority. Of course, the condition for using these models is that there is indeed no employer’s authority. If there is an employer’s authority, there will probably be an employment contract.
Do you want to know whether your assignment agreement is still valid after 1 January 2024? If it turns out not to be valid, what are your options? We will be happy to give advice. We will also be happy to assist with other questions about employment law or disputes with contractors and employees. Please contact us:
Many companies do not have a works council, even though they should. When is it mandatory to establish one? What are the advantages of a works council? What are the consequences if your company does not have a works council?
Discrimination in the recruitment and hiring of new staff is not permitted. When do you, as an employer, discriminate during the application process, even unintentionally? And how can you prevent this, also if you use AI?
What should you bear in mind if you want to change the rent for your business premises? When are you allowed to adjust the price yourself? And in which cases do you have to go to court?
In principle, a continuing performance agreement can always be terminated, even if no arrangements have been made in this regard. But you can’t just do it. What do you need to take into account when terminating the agreement? And what if you want to deviate from the arrangements made about terminating the agreement?
The government wants to improve the legal position of flex workers with a new law. What will it mean for employers and flex workers if the legislative proposal is adopted? What new rules will you need to take into account?
The statutory minimum hourly wage changes every six months. What are the new amounts as of 1 July 2025?
