Hiring in the Netherlands: what’s changing and how to stay compliant in 2025
Blog • Global Payroll • Oct 14, 2025 11:56:24 AM • Written by: Anum Fatima
Freelancers under the spotlight
With Europe tightening rules on self-employment, the Netherlands is taking one of the most decisive steps yet.
Over the past decade, the number of freelancers in the Netherlands has risen sharply -the Dutch Chamber of Commerce reports around 1.2 million self-employed people, an increase of more than 85%. But not all these arrangements are as clear-cut as they seem. Around 13% may be cases of false self-employment, especially in the IT, media, and public sectors.
That’s why the Dutch government is stepping up enforcement of its DBA (Assessment of Employment Relationships) law from 1 January 2025. This change will reshape how companies engage contractors - and it’s something every recruitment agency and end-hirer needs to understand.
The basics: what makes someone an employee?
Under Dutch law, a person is considered an employee if three elements exist:
- Work performed personally for a company
- Payment for that work regularly
- Supervision and/or control by the company
If all three elements are present, the relationship will likely be classed as employment rather than self-employment.
That last point, supervision, is where most confusion lies. If a contractor’s day-to-day work is directed by a client (even subtly), it may signal an employment relationship.
Intermediaries (such as agencies or managed service providers) are also exposed to risk. The more they handle admin tasks like invoicing, timesheets, or payroll, the more likely they’ll be seen as an employer in the eyes of Dutch authorities.
DBA enforcement resumes
After nearly a decade of limited action, the Dutch Tax Authorities resumed enforcement of the DBA rules in January 2025, ending the long-standing “enforcement moratorium.”
Throughout 2025, the authorities have focused on a “soft landing” - giving businesses time to adapt to the rules. While companies have been required to correct any misclassified arrangements, no fines are being imposed this year.
From January 2026, full enforcement will apply. This means businesses that continue to engage contractors incorrectly could face:
- Back payments of employer taxes and social security contributions
- Interest and penalties for underpayment
- Potential loss of approved model agreements, which currently offer limited protection against reclassification
How the market is reacting
So far, reactions are mixed. Some companies are moving contractors onto employed (EOR) models to eliminate risk, while others are waiting to see how strictly authorities act.
Giant’s global payroll experts have noticed a growing preference for Employer of Record (EOR) arrangements over Agent of Record (AOR) models. EOR gives both clients and contractors clarity - taxes and contributions are handled upfront, and the risk of reclassification is removed.
Reducing risk
- Map your flexible workforce - know who’s working where and under what terms.
- Use the Dutch Tax Authority’s online assessment tool to check contractor status.
- Ensure contractors truly act independently - they should set their own hours, use their own tools, and work for multiple clients.
- Consider switching to an employed model (EOR) where the role involves clear supervision or integration into a team.
Looking ahead: new licensing and equality rules
From January 2027, recruitment and staffing companies in the Netherlands may need formal admission (licensing) to supply workers. Agencies without this will face fines.
Meanwhile, a new Collective Labour Agreement (CLA) for temporary workers will take effect from January 2026, ensuring equal treatment in pay and benefits compared to permanent employees.
This marks a major shift and one that agencies and clients should start preparing for now.
Final thoughts
The Netherlands has always been progressive in regulating its labour market, since the beginning of 2025 it has commenced the biggest changes in years. Agencies and hirers should take this as an opportunity to reassess their compliance approach, strengthen their processes, and work with trusted partners.
With its own legal entity in the Netherlands and a proven misclassification assessment tool, Giant Group helps agencies and hirers navigate these changes confidently.
Whether you need compliant payroll through an Employer of Record model or technology that flags contractor risk before engagement, Giant combines compliance and technology under one trusted partner - keeping you compliant today and ready for tomorrow’s rules.
