New VAR leads to anxiety among companies

By: Together Abroad 20-01-2016 3:04 PM
Categories: Business news,
With the envisaged Wet Deregulering Arbeidsrelaties (Deregulation of Labour Relations Act, DBA), acting as the replacement of the Verklaring arbeidsrelatie (Declaration of Independent Contractor Status, VAR), many companies are now afraid that the freelancers they hired can hold greater sway in their dismissal, rather than based upon the limits of their contract. Businesses are working hard to shift the risks.

If the Senate agrees with the DBA, it will come into force by April 1, 2016. The Minister of Finance Weibe first wanted the law to take effect on January 1, 2016, but delayed it after objections from the Senate. The amendment could jeopardise the working relationship between clients and contractors. Companies are taking various measures to ensure that the self-employed will still be treated as an employee, the Financieele Dagblad writes on their website.

Mitigating risks

A well-known broadcaster already has 200 freelancers that must join a mediation if they want to continue to qualify for jobs in broadcasting. The company indicates that this course of action was taken to reduce the risks of the law that allows the government to combat the appearance of independent workers from April 1.

Payroll

More media freelancers refer to payroll companies and other labour mediators to avoid being classified as an employer, with the additional costs that this involves.

The Algemene Bond van Uitzendorganisaties (General Association of Temporary Employment Agencies, ABU) and advocates for the dutch self-employed show that companies in other industries are looking for opportunities to enter into any direct agreements with independent retailers. However, the risks of doing so are not immediately clear. Interest groups and tax experts warn that self-employment will soon be questioned based on principals of not entering into a direct agreement. If they can not fulfill its obligations, such as payment of income tax and social charges, the mediator then runs the risk of being regarded as an employer

Employment force

Another risk is that freelancers can go to court to enforce an employment as an employee, says tax consultant Jan-Bertram Rietveld. For example, after the end of a contract, freelancers could claim illness to ensure continued payment by the employer.

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