The suspension of the enforcement of the Dutch Employment Deregulation Assessment Act (DBA) has been extended to 1 January 2020, according to the Dutch government.

This means that clients and contractors in the Netherlands will not receive any penalties or additional charges until it is established that there is an employment contract. However, the Cabinet of the Netherlands will expand the possibilities for the enforcement of malicious parties from 1 July 2018.

Last year, the enforcement of the DBA Act was postponed until 1 July 2018.

The DBA was supposed to replace the Declaration of Independent Contractor Status (VAR), a standard contract required for all independent contractors in the Netherlands.

In a letter to the House of Representatives, Minister Wouter Koolmees of Social Affairs and Employment and State Secretary for Finance Menno Snel in a letter to the House of Representatives, wrote, “The self-employed have an important position in the labour market. The Cabinet wants to give this large group of entrepreneurs space, but also considers it important that self-employed entrepreneurs make a conscious choice for entrepreneurship and do not end up in a situation of bogus self-employment.”

“In addition, the government wants to put an end to the situation that people are working as self-employed for a rate that is so low that they cannot insure themselves against disability and cannot build up a pension.

“On the other hand, the Cabinet wants to put an end to the competitive disadvantage that companies find themselves keeping to the rules because other companies use handy constructions to reduce wages and to pass on risks. Permanent employees, flex workers and freelancers should not be competitors in the workplace.”

“With the DBA Act, attempts have been made in the past period to clarify the question of when there is an employment relationship. Instead of clarity, the law actually generated a lot of unrest among freelancers and clients. That is why the government is working on new laws and regulations that will enter into force on 1 January 2020 according to planning.”