The hiring of freelance professionals is a blessing for many organizations. Quick turnaround, immediate expertise, and no long-term commitments. But it also brings risks. Legal risks.
The rules around hiring external professionals change frequently and are difficult to understand. You're not a lawyer, and your workday is already full. Yet, you are the one held responsible if things go wrong. Not the mediator. Not the freelance professional, but you. A Managed Service Provider (MSP) helps to reduce that risk.
Which laws are relevant?
Multiple laws apply to the hiring of external professionals. Here are the most important ones listed:
1. DBA Act (Assessment of Employment Relationships Deregulation Act)
The DBA Act determines whether there is an employment relationship. So whether a freelance professional is genuinely working independently, or actually has a disguised employment relationship. We call the latter pseudo self-employment. Ask yourself: is the freelance professional working under your direct supervision? Are they doing the same work as permanent employees? Is there no possibility for replacement?
If the Tax Authority concludes that the collaboration is effectively an employment relationship, they can impose additional assessments. You then pay payroll taxes, premiums, and possibly a fine. The freelance professional remains unaffected.
2. Labour Market in Balance Act (WAB)
The WAB is mainly known for the rules regarding on-call workers and permanent contracts. Employees with a permanent contract often have stronger positions than flexible workers. They receive better conditions and have more rights. The government wants to tackle this unequal distribution. This means: equal treatment, equal opportunities, and attention to continued payment in case of illness or unemployment.
3. More Security for Flexible Workers Act
This new law significantly tightens the rules for flexible work. It builds on the Labour Market in Balance Act (WAB) and goes a step further.
Zero-hour contracts will be abolished, and the overall position of temporary workers must be improved. The goal is clear: more security, clarity, and balance for everyone with a flexible contract. The expectation is that the law will come into effect in 2027.
4. Allocation of Labour by Intermediaries Act (WAADI)
The WAADI ensures that all employers who lend out staff work neatly and transparently. Temporary workers and payroll employees have the right to the same pay and conditions as permanent colleagues. The hirer must also be clear in advance about the role and working conditions. This way, the WAADI protects flexible workers and prevents abuse.
Where does your organisation face risks?
Risks exist on several levels:
- Financial: additional tax assessments, fines, damage claims.
- Reputation: negative media attention or a court ruling.
- Operational: loss of crucial professionals due to legal disputes.
These risks increase as you engage more freelancers or are active in multiple countries. Precisely then, the overview often becomes blurred.
How does an MSP help?
An MSP manages the entire hiring process: from contract management and rate agreements to compliance checks and reporting. But more importantly: an MSP ensures everything is legally correct and demonstrable.
At HeadFirst, we do this daily for thousands of clients. With a global reach and a keen eye for laws and regulations, we help organisations to organise their hiring safely and efficiently. Technology plays a major role in this. With tools like PowerBI, our own ProUnity platform, and advanced VMS integrations, we provide overview, insight, and demonstrability.
What does this achieve?
- Overview: you know who is working, under what conditions, and for how long.
- Insight: you see where potential (legal) risks arise.
- Demonstrability: you can substantiate that you are working according to the rules.
Our approach is proactive. Not just when things go wrong, but to prevent it. Consider automatic alerts for unusual hiring, rate models, or durations. This way, you avoid surprises afterwards.
Why this is relevant now
From 1 January 2025, the Belastingdienst will actively enforce false self-employment. This means that clients who utilise self-employed professionals in a manner resembling employment are at risk of additional assessments and fines. The DBA Act has existed since 2016, but its enforcement had been suspended for years. That is now changing.
2025 will be a transitional year. If you can demonstrate that you are seriously working on fair hiring practices and preventing false self-employment, you will generally not receive a fine. However, from 2026, that leniency is over. Then it will be: no clear self-employment = employment = financial consequences.
The rules are not new. But the implementation and stricter control certainly are. Therefore, the risk is greater than ever that you, as a client, might unknowingly make mistakes. Especially if you work with many self-employed professionals or use multiple suppliers and systems.
This is the time to gain control over your hiring process. And that also includes legal certainty. Want to know how an MSP can assist your organisation with this? Feel free to contact us, we are happy to think along with you. s
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