The legal and financial differences between a self-employed person and an employee
There is often confusion as to whether someone is a self-employed person without staff (zzp'er) or should still be considered an employee. This distinction is important not only for the workers involved themselves, but also for clients and employers. This is because the legal status determines the rights, obligations and financial consequences for both parties.
The characteristics of a self-employed person
A zzp'er works as an independent contractor and determines his or her own working hours, rates and clients. There is no employment contract with an employer; instead, arrangements are made through a contract of assignment. So you see, a zzp'er works independently, with freedom that you don't have as an employee.
As an independent contractor, a self-employed person must take care of the payment of taxes and social contributions himself. This means that there is no right to continued payment of wages during illness or unemployment benefits upon termination of an assignment. On the other hand, a self-employed person can take advantage of tax benefits such as the self-employment deduction and the SME profit exemption.
The characteristics of an employee
An employee has an employment contract with an employer and receives a fixed salary. This entails various labor rights, such as the right to vacation days, vacation pay, a pension plan and continued payment during illness. In addition, an employment contract provides protection against wrongful dismissal and the employee can claim unemployment benefits in the event of unemployment.
An important criterion for establishing an employment contract is the existence of a relationship of authority. This means that the employer determines how the work is performed and supervises the employee. All this contrasts with a self-employed worker, who is his or her own boss.
The impact of the Deliveroo ruling
The court case surrounding Deliveroo highlighted the importance of the distinction between self-employed and employee. The highest court in the Netherlands ruled that Deliveroo's delivery drivers were in fact not true self-employed workers, but sham self-employed workers. The way they performed their work indicated a relationship of authority, similar to that of an employee. This meant that the delivery drivers were entitled to the labor rights associated with an employment contract.
These kinds of rulings may have implications for other sectors that work extensively with self-employed workers. Employers who unfairly work with self-employed workers run the risk of having to pay social contributions and taxes afterwards.
What if a self-employed person actually turns out to be an employee?
More and more often we see self-employed workers going to court claiming that they should actually be treated as employees. This happens, for example, when a client terminates a long-term partnership. When a self-employed person is fully embedded in the client's organization and has hardly any entrepreneurial freedom, a judge may conclude that there is actually employment. This can be a difficult situation for self-employed persons or employees in this unclear position.
Conclusion: why is the distinction important?
The distinction between zzp'er and employee has implications for both the worker and the client. Misclassification can lead to financial and legal risks, such as retroactive tax assessments from the Tax Office and claims for social security entitlements.
For both self-employed workers and clients, it is therefore crucial to understand the factors that determine whether an employment relationship exists. This prevents unexpected costs and legal conflicts.
This blog was written by Mr. Stijn Blom, employment lawyer at Arbeidsadvocaat.nl B.V. Stijn has extensive experience in employment law and assists entrepreneurs daily with a wide range of employment-related matters. From dismissal cases to drafting watertight contracts and policies – with his practical and personal approach, he helps employers and employees move forward. Want to know more?Visit Stijn's page.
Arbeidsadvocaat.com is happy to think with you if you have questions about employment. Please feel free to get in touch .
April 2025
