Are you wondering whether you're truly an entrepreneur as a self-employed person or perhaps a bogus self-employment? These crucial differences can have a significant impact on your rights and obligations.
True self-employed individuals have entrepreneurial freedom, choose their own projects, and decide how they work. With bogus self-employment, these freedoms appear to exist, but in reality, a client directs you, just like an employee.
Understand the distinction between client and employee relationships to legally define your position as a freelancer. Clear agreements and a model agreement in accordance with the DBA law can help you with this.
What are the characteristics of true independence?
As an independent professional, you naturally want certainty about your status. True independence has several defining characteristics that distinguish you from an employee. These include a high degree of freedom in:
- How you do your work – You determine the working method and approach yourself.
- When you work – Flexible working hours and decide for yourself when you accept jobs.
- Where you work – The opportunity to work at different locations or from home.
- Possibility to accept multiple clients – Diversity in assignments and clients prevents dependence on one party.
What signals false self-employment?
False self-employment is a situation in which you work as a freelancer, but actually exhibit all the characteristics of an employee. Consider:
- Lack of entrepreneurial risk – You run no financial risk and, for example, you have not made any investments in your company.
- Little to no freedom – You have to follow instructions and have little influence on how you carry out your work.
- Activities are the same as those of staff – You do the same work as permanent employees, possibly under the same conditions.
- Dependence on one client – The majority of your income comes from one client.
How can you guarantee independence?
- Conclude clear contracts – Record agreements in a contract and avoid power relations.
- Profile yourself as an entrepreneur – Ensure a professional appearance with your own website and corporate identity.
- Vary your clients – Build a broad customer base to limit dependency on one party.
- Collect evidence of independence – Keep an administration with, for example, quotes and invoices to various clients.
What does the DBA law say about self-employment?
The DBA Act aims to distinguish between genuine and bogus self-employment. This is done through model agreements that clarify the relationship between the client and the self-employed person. It is important that practice aligns with the provisions of these agreements.
Solutions for false self-employment
To prevent false self-employment, it's important to proactively take the steps outlined above. You can also use services to strengthen your position as a freelancer. Flexamedia offers a complete self-employed website package, allowing you to professionally promote your entrepreneurship.
Build a strong online presence and reduce your risk of false self-employment. Designed to perform optimally on all devices and delivered with professional copy and photos. All for just €349 one-time. Plus, enjoy the convenience of free hosting for the first year and a free .nl or .com domain name. Seize this opportunity now and claim your complete freelance website package from Flexamedia. Click here to start.
How do you distinguish yourself as a true self-employed person?
The art of distinguishing yourself as a true freelancer lies not only in complying with legal criteria but also in communicating your entrepreneurial spirit. This starts with a professional website and clear communication with your clients. This way, you build trust and can proudly claim your independence in the market.
Frequently asked questions
What is the difference in authority between genuine and sham self-employment?
As a truly self-employed worker, you have a high degree of freedom in how you perform your work. There's no boss telling you what to do. With false self-employment, you appear to be your own boss, but you're actually following detailed instructions from the client and aren't free to perform your duties. This could indicate that you're actually employed by the client.
How do I distinguish between genuine self-employment and bogus self-employment based on contracts?
With true self-employment, you often have multiple clients and enter into a contract for each project. This means you have a diverse client base. False self-employment, on the other hand, often works for a single client for a long period of time, which can indicate a disguised employment relationship. This is especially evident when the contracts resemble employment contracts.
What does bearing entrepreneurial risk say about genuine versus bogus self-employment?
A true self-employed entrepreneur bears entrepreneurial risk. This means you are personally responsible for the financial consequences of your work, such as unpaid invoices or the purchase of materials. With bogus self-employment, you run fewer or no such risks, because you are always paid a fixed amount, regardless of the results of your work.