The government is scrapping part of the Vbar

For many business owners, hiring self-employed contractors is no longer just a practical decision, but also a legal risk. Since the debate over bogus self-employment has intensified, clients have noticed that a single misjudgment can lead to inquiries from the tax authorities, disputes over payroll taxes, or even claims from workers who later argue that an employment contract actually existed. At the same time, there is broad recognition that bogus self-employment schemes must be addressed without unnecessarily affecting genuine self-employed individuals. Striking that balance, however, proves difficult in practice.

Two legislative proposals

Two legislative proposals are currently under consideration that aim to provide greater clarity and certainty for self-employed individuals and clients. These are the Act on Clarification of the Assessment of Employment Relationships and Legal Presumption (Vbar) and the Self-Employed Persons Act. The government recently scrapped part of the Vbar. Specifically, the clarification section. This meant that further details would be provided regarding the interpretation of authority based on the Deliveroo criteria. The Self-Employed Persons Act is intended to replace that part of the Vbar. What remains is the legal presumption. We explain this below.

How does the legal presumption work?

The essence of the measure is simple: if an employee is paid less than €38.00 per hour (as of January 1, 2026), the law presumes that an employment contract exists. This is referred to as a legal presumption. The worker does not have to prove this entirely on their own; they only need to demonstrate that the hourly rate is below the €38.00 threshold. Once that is demonstrated, the burden of proof shifts to the employer. It is then up to the employer to prove that no employment contract exists, for example because there is no authority, work, or wages as defined by law.

This is explicitly a rebuttable presumption. Therefore, an employment contract does not automatically arise the moment someone works below this rate. However, if the worker invokes the legal presumption—either with the employer directly or through the courts—the employer is in a difficult position if they have not structured the working relationship as an employment contract.

Why a rate of €38.00?

The rate of €36.00 per hour is based on 120% of the statutory minimum wage, plus a surcharge to cover costs that a self-employed person would normally have to bear themselves, such as disability insurance, pension contributions, and periods without assignments. The rate is adjusted twice a year, at the same time as the statutory minimum wage is indexed.

What does this mean for you as an employer?

If you hire a self-employed person for less than €36.00 per hour, you run the risk that this person will later invoke the legal presumption and claim an employment contract. This can have far-reaching consequences. If the court rules that an employment contract does indeed exist, you, as the employer, are required to pay payroll taxes, the worker is covered by employee insurance, and labor laws apply. Additionally, pension contributions may be due if a pension plan applies within your industry or under your collective bargaining agreement.

The legal presumption applies exclusively to the relationship between you and the worker. The Tax and Customs Administration, the Employee Insurance Agency (UWV), and the Labor Inspectorate cannot invoke this legal presumption themselves. They still assess the employment relationship based on the standard criteria: work, wages, and authority. However, if a judge has determined, based on the legal presumption, that an employment contract existed, these authorities will, in principle, align with that ruling.

What can you do as an employer?

The most important lesson from this measure is that when hiring self-employed individuals at a rate below €36.00 per hour, you must carefully assess whether the employment relationship can indeed be classified as self-employment. If you fail to do so, the worker may invoke this legal presumption. The threshold for this has been deliberately set low. As an employer, you are expected to opt for an employment contract when in doubt, or to structure the employment relationship in such a way that it is clear there is no employment relationship.

Note that a higher hourly rate does not preclude an employment contract. A higher rate can, in fact, coexist with characteristics that still point toward employment, for example if:

• the self-employed person is a structural part of daily operations;
• the client effectively determines when and how the work must be done;
• replacement is effectively not possible;
• there is little to no entrepreneurial risk (e.g., continued payment in case of absence, no personal investments, no personal marketing or acquisition).

For entrepreneurs, it is therefore wise to view the rate as just one factor within a broader assessment of the employment relationship. As mentioned earlier, the final determination remains a “holistic assessment” of the entire set of circumstances of the case.

For a complete picture of the plans currently under consideration, we refer you to the article by Jop Fellinger, which explains once again how the Self-Employed Persons Act works.

Questions?

Do you have any questions regarding this article or employment law in general? Please feel free to contact our specialized attorneys.