Freelancers who earn less than €36 an hour could be reclassified as employees and offered permanent contracts under new draft legislation submitted to parliament by the social affairs ministry.

The bill aims to clarify when someone should be considered self-employed and when an employer must offer a formal contract. It follows years of debate over the rise in flexible working arrangements and ‘sham’ freelance constructions such as those used by delivery companies.

“We are strengthening the position of people who are being forced to accept a lower salary and work via a freelance construction,” social affairs minister Eddy van Hijum told MPs.

The legislation would give people earning below €36 an hour the right to claim that they are, in fact, employees. The burden would then be on the employer to prove otherwise.

If the employer cannot do so, the worker would be entitled to the same conditions as someone on a regular contract, including sick pay, maternity leave, unemployment benefits and disability support.

The €36 hourly threshold will rise annually in line with the minimum wage. Other factors will also be considered when assessing whether someone is genuinely self-employed, such as how much independence they have in their work and whether they actively seek out new clients.

“If you are managed directly and you don’t run any risks, then you are an employee and have the right to the guarantees that brings,” Van Hijum said.

The ministry estimates that around 200,000 of the Netherlands’ 1.3 million registered freelancers should be employed on standard contracts.

Tax office checks

At the start of this year, the tax office introduced stricter checks on sham self-employment, which led to a sharp rise in the number of freelancers closing down their businesses.

The legislation still requires parliamentary approval. Several parties, including three likely to take part in the next coalition, oppose the bill in its current form.

They argue that the tax office’s enforcement measures have caused uncertainty among freelancers and their clients, and that the legal definitions remain too vague. Some also warn that companies are becoming increasingly reluctant to hire freelancers due to the risk of fines.