If you’re an EU national relocating to the Netherlands for work, it’s important to understand the risks of being self-employed versus the benefits of being employed through an agency like InAxtion.
There’s nothing wrong with self-employment; lots of workers choose to be self-employed. However, the risks are higher. To protect yourself – and your rights as a worker in the Netherlands – it’s important to follow the rules instead of rumors, especially to avoid something known as ‘false self-employment’.
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“Our employees receive a pension, sick pay, and other benefits that self-employed people often do not have. As a result, the income difference between employed and self-employed is often smaller than people think.”
– Marc van Ravenstein, Owner & General Manager, InAxtion
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Self-employed vs employed
In the Netherlands, a self-employed worker – Zelfstandige Zonder Personeel (ZZP-er) – operates independently, sets their own work schedule, and handles their own tax and social security contributions.
When a business contracts someone self-employed, it does not have the same obligations towards them as it does with an employee. Protected under labor laws, employees – werknemer – have rights such as defined notice periods and redundancy. An employer also has to make social security payments on their behalf to cover things like paid sick leave.
For that reason, it’s often cheaper and preferable for a business to bring in self-employed contractors over hiring permanent employees. But what’s best for you as a worker? Here’s a table summarizing the main differences:
| Feature | Employee
Werknemer |
Self-employed
Zelfstandige (ZZP’er) |
| Schedule | Working hours and tasks are set by your employer | You control your own work and tasks |
| Income | A fixed salary that’s paid monthly or weekly | Paid via invoicing and varies based on projects/clients |
| Benefits | Pension contributions, holiday pay, and paid sick leave | No automatic benefits |
| Taxes | Deducted and paid by your employer | Self-assessed and paid by you |
| Insurance | Partly covered by your employer | Arranged and paid for by you |
| Pension | Part-contributions made by your employer | Arranged and paid for by you |
| Security | Protected by Dutch labor laws | Limited job security and protection |
| Clients | One employer | Multiple clients |
What is ‘false self-employment’?
False self-employment is where a company treats you as a self-employed contractor, but you perform duties under the same conditions as an employee. For example, they tell you when to begin and end your work day or when you can take a break.
This can be problematic for you as a worker. Why? False self-employment means you’re dependent on a single employer. You follow their instructions, and you work like an employee but without the same rights, such as paid sick leave, holiday pay, pension, and unemployment benefits.
To tackle false self-employment, the Dutch government and tax authorities – Belastingdienst – will be proactively working to prevent false self-employment through audits and tighter regulation enforcement from 2025.
Our consultants are here to help you thrive
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“At InAxtion we see an opportunity to build sustainable relationships with our clients with well-trained and permanent staff. The advantage of this is that we and our customers can offer employees continuity and security.”
– Marc van Ravenstein, Owner & General Manager, InAxtion
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Working for an employment agency like InAxtion is a great option for technical workers coming to the Netherlands from other parts of Europe. That’s because you’re employed by InAxtion, but you get to work for different companies on short-term and long-term projects. This gives you all the job security and perks of employment, with the flexibility – in terms of who you work for – of being self-employed.
On top of that, our dedicated consultants are your family and friends away from home. Here are some of the things we can help you with:
- Adjusting to daily life in the Netherlands
- Connecting you with the right people, e.g. tax experts
- Your employee rights and entitlements
- Making and viewing your pension contributions
- What to do when a project ends
To discover more about becoming an InAxtion employee, get in touch with one of our friendly consultants today. Contact us
