‘Extra Hands’ vs. Experts: What’s the Difference and What Impact Does It Have on the Risk of False Self-Employment?

Do you lead a legal team? Whether you like it or not, from time to time you’ll run up against capacity limits.
Hiring a self-employed professional can be a great solution. An experienced set of ‘extra hands’ can truly make a difference for the team. However, since the renewed enforcement of false self-employment rules as of last January, hiring freelance legal professionals has become a bit more complex. It's something we need to take into account.

So, what exactly is the difference between hiring ‘extra hands’ and bringing in external expertise? How does the Dutch Tax Authority view this? And how can you responsibly meet your temporary staffing needs today?

The Difference: ‘Extra Hands’ vs. Expertise

Hiring for capacity (“extra hands”)
This refers to bringing someone in to perform operational tasks within your existing processes. It closely resembles an employment relationship, which increases the risk of false self-employment.

Hiring independent expertise
This involves professionals who contribute specific knowledge or skills, operate independently, and are not embedded in your organization. They work based on a clearly defined assignment, use their own methods, and are not subject to direct supervision. In such cases, the risk of false self-employment is generally limited.

How Can You Still Hire Freelancers Without Unnecessary Risk of False Self-Employment?

Hiring external capacity is still possible—as long as you take a few key points into consideration. The goal is to avoid having freelancers become embedded in your organization. There are various ways to avoid (the appearance of) organizational embedding. Here are three practical tips:

• Clear Assignment Definition
  Define the tasks and responsibilities to be outsourced in a precise and results-oriented way. Avoid situations where a freelancer is ‘just part of the team’ without a clear assignment or measurable deliverables.

• No Direct Supervision
  A freelancer must have the freedom to determine how and when the work is carried out. Avoid daily monitoring, fixed work schedules, and mandatory meetings that resemble those of employees.

• Entrepreneurship
  The degree to which a freelancer acts as an entrepreneur is important. Check whether the professional you work with behaves like an entrepreneur. Do they have multiple clients? How do they present themselves externally?

You’ll find many more tips and do’s & don’ts in this checklist to help you work responsibly with freelance professionals.