The Impact of New Rules on Self-Employment

The freelancing landscape in the Netherlands is undergoing a dramatic shift as stricter regulations around false self-employment come into effect. December 2024 marked a significant turning point, with a record number of freelancers shutting down their businesses. According to the Dutch Chamber of Commerce (KVK), over 21,000 self-employed individuals deregistered in December, representing a staggering 54% increase compared to the same month the previous year.

The Numbers Behind the Change

For the first time, more freelancers exited the market than entered it. While 14,000 people registered as self-employed, this marked a 13% decline compared to December 2023. Despite these shifts, the overall number of freelancers grew marginally. By the end of 2024, there were 1.7 million self-employed persons in the Netherlands, a 3.1% year-over-year increase—a much slower growth rate than seen in previous years.

Stricter Rules and Market Uncertainty

The recent spike in closures is closely tied to the new regulations targeting false self-employment, which took effect on January 1, 2025. Under these rules, employers who misuse freelance contracts for roles that should be permanent employment are subject to supplementary social security assessments. While fines are not yet being imposed, the mere possibility of retroactive penalties is creating uncertainty in the labor market.

This trend could have significant long-term effects, as many zzp’ers represent the entrepreneurial seeds of tomorrow’s small and medium enterprises (SMEs). Historically, a substantial portion of freelancers have evolved their businesses into thriving companies that contribute to economic growth, job creation, and innovation. A decline in the number of active zzp’ers could weaken this pipeline, potentially reducing the number of new businesses entering the market in the coming years.

What This Means for Freelancers and Employers

These developments highlight a shifting landscape for freelancing in the Netherlands:

For Freelancers

Freelancers now face heightened scrutiny regarding their working arrangements. This means they must:

• Evaluate the viability of their business model: Freelancers should assess whether their current operations align with the new legal definitions of self-employment. Those working for a single client or in roles resembling employee responsibilities may need to adjust their approach.
  
  
• Diversify their client base: Relying on multiple clients instead of a single source of income reduces the risk of misclassification and ensures greater financial stability. Exploring new industries or offering services in adjacent markets can also open up additional opportunities.
  
  
• Invest in legal and administrative compliance: Freelancers should ensure their contracts clearly outline their independence and include clauses that meet the updated requirements. Seeking guidance from legal professionals or industry associations can help safeguard their business.
  
  
  

For Employers

Employers, on the other hand, are now tasked with greater responsibility to ensure compliance with the new rules. They must:

• Thoroughly evaluate freelance contracts: Companies need to review existing and future agreements to ensure they meet the criteria for true self-employment. This includes clearly defining project-based work and avoiding terms that imply an employer-employee relationship.
  
  
• Develop alternative staffing strategies: Organizations may need to rethink their reliance on freelancers for roles that could be classified as employment. This might include using temporary contracts, hiring permanent staff, or building hybrid work models that combine flexibility with compliance.
  
  
• Enhance communication with freelancers: Open and transparent discussions with freelancers about the impact of the new regulations can help address uncertainties and strengthen partnerships. Offering clarity on expectations and payment terms can ease tensions and promote trust.
  
  
  

While the new rules aim to address labor market inequalities, they have undoubtedly introduced uncertainty for freelancers and organizations alike. How these changes will shape the future of freelancing in the Netherlands remains to be seen, but collaboration and clear communication will be essential to navigate this transition successfully.

Looking Ahead

The future of freelancing in the Netherlands hinges on adaptability, collaboration, and resilience. The KVK and other industry groups will play a vital role in monitoring these trends and shedding light on their implications. For freelancers, staying informed and diversifying their strategies will be essential to thriving in this new environment. Employers, meanwhile, must embrace compliance as an opportunity to strengthen their workforce strategies and build more equitable partnerships.

These changes present challenges, but they also pave the way for innovation and progress. By working together, freelancers, businesses, and policymakers can shape a freelancing ecosystem that is fair, dynamic, and sustainable—one that continues to drive the Dutch economy forward.

More information

If you would like more information, do not hesitate to connect with Monique Ramondt-Sanders – Executive Vice President of Human Resource Outsourcing at EuroDev.

Would you be interested in more information about our HR Outsourcing services? Please have a look at our HR Outsourcing page.