The DBA Act and bogus self-employment: what does it mean for your organization?

As a client, you've probably noticed: there's a lot of uncertainty in the market surrounding the DBA Act and bogus self-employment. Many clients are wondering: what does this mean for my organization? Can we still employ freelancers?

The short answer: yes. Self-employment won't be made impossible. The rules will simply be applied more clearly and rigorously, making it easier to determine when someone is truly self-employed and when something actually resembles an employment contract.

In this article, we'll guide you through the most important developments. What exactly is happening? What does this mean for your organization? And how can you continue to employ freelancers with confidence and clarity within these frameworks?

Are you a self-employed person? Then read what the What the DBA Act means for you.

Why does the DBA Act actually exist?

The DBA Act (Deregulation Assessment of Employment Relationships) was introduced in 2016 to combat false self-employment: situations in which someone is a self-employed person on paper, but in practice works as an employee.

The government wants that:

• Anyone who is actually an employee should be treated and protected as such
• Anyone who is truly an entrepreneur can continue to do business freely

The Dutch Tax and Customs Administration uses various criteria to assess whether someone is self-employed. Since 2025, the Dutch Tax and Customs Administration has been fully enforcing false self-employment. Organizations that hire freelancers must be able to explain more clearly whether someone is truly self-employed. Failure to do so may result in fines and additional assessments.

Please note: a new law is being prepared to replace the DBA Act. The entry into force of VBAR Act (Clarification of the Assessment of Employment Relationships and Legal Presumption) has been provisionally set for July 1, 2026. The rules may therefore change further in the future.

What is false self-employment?

False self-employment means someone is an entrepreneur on paper, but the work, position, and management are similar to those of an employee. Think: fixed working hours, integrated into a team, a lot of guidance, and little entrepreneurial spirit.

In short: it's not about what's on paper, but what happens in practice.

How does the Tax Authorities assess this?

The assessment is partly based on various criteria from the Deliveroo ruling:

1. Content and duration of the assignment

Is the assignment suitable for an independent expert? The work must be unique, specialized, and project-based. Examples:

• Independently delivering a Q3 analysis and an accompanying communications plan.
• Set up, design and send 10 newsletters within three months.

2. Freedom in working methods and times

A self-employed person determines their own location and working hours. The more control a client has, the greater the risk of false self-employment.

3. Embedding in the organization

Is someone part of the team, or does that person support the team from outside? Characteristics of embeddedness (and therefore the risk of false self-employment):

• Someone is part of the internal organization
• Activities that strongly affect the core of the organization and have little autonomy in their implementation

Characteristics of independence:

• A loose, defined assignment
• Freedom in methods, planning and approach
• No bills or performance reviews
• Someone can also work for other clients

4. Management and supervision

This is one of the most important criteria. Self-employed:

• Are hired for specific knowledge
• Didn't receive any instructions on how to do something
• Determine their own planning
• Are judged on results, not attendance

As a client, you can dictate the desired outcome; that's what someone is hired to do, not how they achieve it. However, coordination regarding the status of the assignment can take place.

5. Personal obligation

Can someone outsource the work, or must they do it personally? Requiring someone to do the work personally increases the risk of false self-employment.

6. Method of rewarding

Self-employed workers are paid for output or hours worked to achieve a result. If someone is paid during illness or leave, it tends towards salaried employment and therefore false self-employment.

7. Rates

Freelancers' rates are higher than those of regular employees. In return, they face greater financial risks than permanent employees. The proposed lower limit of €35 per hour is not a problem in our sector: experienced communications professionals earn well above that.

8. Entrepreneurship

Someone presents and behaves as an entrepreneur if that person:

• Registered with the Chamber of Commerce
• Not dependent on 1 client for turnover
• Entrepreneurial risk runs
• Determine the hours yourself
• Presents himself as an entrepreneur and not as an employee of the client

Examples: what is allowed and what is not?

Maternity cover (peak and sick)

✕ Not suitable if the work is taken over one-on-one, in a team, under the direction of a manager, and with little independence.

✓ This is possible if the organization sets a clear performance target: what needs to be delivered within that period, by a specialist who carries this out independently.

Effort vs. results

✕ Obligation to make an effort (“you are here from 9 to 5 and you work the way we do”): characteristics of paid employment.

✓ Result obligation (“this is the assignment, this is the end product, do it your way”): suits the self-employed.

Junior vs. Strategic

✕ Juniors require a lot of guidance, clear instructions, and limited autonomy. Therefore, they are rarely suitable for independent roles.

✓ Strategic or specialist roles often suit independence, because expertise is leading and implementation takes place independently.

What are the risks?

Since 2025, the Dutch Tax and Customs Administration has been actively monitoring clients (the hiring organization or the agency that handled the placement) for bogus self-employment. If bogus self-employment is found, the Dutch Tax and Customs Administration reclaims levies and premiums (wage tax, employer contributions, employee insurance schemes such as unemployment benefits (WW) and disability benefits (WIA)). This can be a significant financial burden.

What do we do?

At Babbage, we actively review every freelance assignment. We do this together with you and the freelancer. We use a DBA Act checklist to ensure an assignment fits within the guidelines.

Increasingly, clients decide for themselves whether a project can be done through freelance. If not, we'll discuss the matter and find a solution. Sometimes this involves adjusting the project, sometimes it involves choosing a different structure.

Important: “essence comes before appearance.”

Practical experience is paramount, and assignments sometimes change during the term. Therefore, we ask you to clearly document the assignment (result) and how a freelancer works in practice with you as the client (management and supervision).

What if the assignment cannot be done through freelance?

Sometimes a freelancer simply can't handle an assignment. In that case, we'll explore alternatives together, such as:

• Someone with a (temporary) employment contract through Babbage
• Inflow into your organization
• A customized assignment structure

And a frequently asked question: is working through a private limited company (BV) a solution? No. It's about the actual situation, not the legal structure. The Tax and Customs Administration looks at behavior, management, and integration. So, even through a BV, you can be considered self-employed.

Do you have any questions about your situation? Yke Hoekstra I'd be happy to discuss your situation, assignment, and job description with you. We can also work with a freelancer, if desired.

Want to learn more? Check out:

• Tax Authorities – When is there employment?
• Tax Authorities – Employment relations: self-employed – yes or no?
• Central government – The right contract: self-employed, yes or no?
• Chamber of Commerce – DBA Act: prevent false self-employment

Disclaimer: The information on this page has been carefully compiled based on the laws and regulations applicable on the publication date of December 29, 2025. Use of the information on this page is strictly at the user's own risk and responsibility. No legal rights can be derived from its use. Babbage Company BV accepts no liability for errors or omissions on this page. Should a user suffer any damage as a result of using the content of this page, Babbage Company BV will not accept that damage. Babbage Company BV will never conclude that there is no case of false self-employment. Only the Tax Authorities or a competent court can draw that conclusion.