AMSTERDAM – A law which was passed not long ago may impose enormous risks on self-employed workers hiring other self-employed workers.
Freelance platform PZO warns about 36,000 euro fines for not registering properly. The Waadi law, (the law on workforce allocation by intermediary) was amended on the first of July in order to deal with mala fide employment agencies. But the PZO claims that the law is set up so that it leaves too much room, self-employed people hiring other freelancers also fall under this law, according to a spokeswoman interviewed by NUzakelijk.nl. “We were informed by an entrepreneur about the law. We have now started our own investigation.” According to PZO a possible situation in which the law would be applicable is when a self-employed person has too much work and consequently hires another freelancer to take on some of the work.
Registration with the Chamber of Commerce
In order to prevent a fine, self-employed persons should change their registration with the Chamber of Commerce. No fines have been handed out up to now. It is also not quite clear who will be handing out these fines. According to the spokeswoman the chance of any fines actually being handed out is small. “We would however, like to emphasise the importance of freelancers being aware of this law”.
A spokesperson for the Ministry of Social Affairs and Employment stated that self-employed persons should not worry. “The reason for this law is to deal with the mala fide employment agencies. It is not mandatory for self-employed persons to register. As long as they offer their services they do not have to register.”
Important exceptions are self-employed persons who’s legal from is a private company (PLC). The Chamber of Commerce explains; if the freelancer works under supervision and leadership of a third party, then the PLC provides so-called non-business workers and this should be registered. The spokesman for the Ministry emphasises that the chances of catching these mala fide employment agencies is increased by setting up the law in this way. “If we would make it a very specific law, chances are that it will it cover all cases.”
By: NUzakelijk/Wilbert Zuil