Flexible work is everywhere. Freelancers, self-employed professionals, and temporary workers operate throughout the Netherlands. But who actually bears the responsibility for these flexible workers? And what is a hirer exactly? The term frequently appears in the world of flexible work, but the meaning and obligations are less well-known.
If you deploy external forces, you automatically become a hirer. That seems straightforward, but the legal implications are more complex than you think. You assume responsibilities in the areas of tax, insurance, and working conditions. Many organisations underestimate that role.
They see hiring a freelancer or temporary worker as ordering a service. In reality, as a hirer, you take on obligations that can have significant consequences.
What is a hirer?
The legal meaning of hirer is: the company that employs temporary workers through an agency or other intermediary. As a hirer, you determine which tasks need to be done, how they are executed, and under what conditions. The flexible worker works under your direction but is not on your payroll.
The distinction between client and hirer is important here. A client outsources a task to a self-employed individual and leaves the execution largely to him or her. A hirer, on the other hand, brings someone in who practically functions as an employee, with direction and control from your organisation. In the latter case, many more obligations come into play.
Hirer's liability makes that clear. If something goes wrong with the payment of taxes or social security contributions, the tax authorities can hold you as the hirer liable. Even if you have arranged everything through an agency. The law makes you jointly responsible.
When are you a hirer?
You are a hirer as soon as you exercise authority over an external worker. Do you give instructions about the work? Do you determine working hours or provide the workplace and resources? Then you function as a hirer, even if you think you are purchasing a service.
What must a hirer do?
As a hirer, you are responsible for ensuring safe working conditions. You must provide a suitable workplace, the right resources, and safety training where necessary. If something goes wrong and an accident occurs, you could be held liable.
Additionally, you are responsible for payroll tax and social security contributions. Even if the employment agency performs this, you remain ultimately responsible. Errors or malpractice can lead to additional assessments and fines. This is called joint and several liability.
Administrative obligations are also involved. You must keep track of who works for you through hiring, under what conditions, and for what period. You must be able to show that information during inspections.
What risks do hirers face?
A major risk is false self-employment. Do you work consistently with the same freelancer who effectively functions as an employee? Then the Tax Authority may determine that an employment relationship exists. The consequences are significant: additional tax assessments, fines, and possibly compelled employment.
The enforcement on false self-employment makes it even more complicated. This law sets limits on working with freelancers. As a hirer, you must be able to prove there is genuine self-employment. If you can't, you risk severe sanctions.
The role of hirers within Total Talent Management
Total Talent Management (TTM) helps hirers gain control over their flexible workforce. Instead of separate, ad-hoc solutions, you strategically manage the use of external workers. Permanent employees, freelancers, temporary workers, and consultants together form your entire workforce.
At HeadFirst, we look at that entire ecosystem. By managing integrally, you gain more control, reduce risks, and derive more value from your flexible talent. This way, as a hirer, you turn your obligations into a powerful component of your strategic personnel policy.
Do you want better insight into your role and responsibilities as a hirer? We can further assist you with advice, tools, and support.
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