No fines when enforcing labor relations with self-employed persons and more On 18 December, the Enforcement Plan for Labor Relations Tranche 2025 was published on how the Dutch Tax and Customs Administration will monitor and enforce labor relations in the Netherlands starting 1 January 2025: https://lnkd.in/eAPW2Vef The Enforcement Plan is based on a 'soft landing' approach as requested by the Lower House: The key points in this plan are: - after-tax payroll tax and social security contributions will remain as usual. - no default and fines will be imposed. - the Tax and Customs Administration will hold discussions with companies about the hiring of self-employed persons by means of company visits and, if necessary, will remind companies to pay attention to the qualification of the employment relationships and possible risks of false self-employment. - this counts as a (non-official) warning and thus the opportunity to adjust business operations. - company visits can be followed up by audits, possibly resulting in the imposition of corrective obligations (via an instruction) and, if necessary, the retroactive levying of payroll taxes due. - retroactive levies will not go back further than 1 January 2025, unless there is malicious intent, or the instruction was given before 1 January 2025. - model agreements already approved by the Tax and Customs Administration shall remain in force and are automatically extended until 31 December 2029. Tip: we advise companies to remain critical of properly setting up the hiring process of self-employed persons and take the necessary management measures (what is and is not possible). #clintlittler
Partner, PCS | Littler Poland, Head of Gdańsk Office
5dSoft landing, indeed. Cery interesting how different jurisdictions approach self-employment arrangements. In comparison, in Poland local authorities expect even more power from the government to resolve these issues on their own, without any intention of dialogue with entrepreneurs.