When you work with freelancers, you agree on an all-in rate on an hourly, commission or project basis. We believe that an average minimum rate per hour is essential for working on a self-employed basis. There must be room to work at your own expense and risk and the freelancer must be able to insure himself against certain risks. It is important to protect yourself against false self-employment. Verloning.nl offers you the guarantee that it is properly taken care of.
The minimum hourly rate has been created to prevent false self-employment. Although European legislation makes this difficult, we find it so important that we do not reward freelancers who work below the average hourly rate of € 15. We find it important that the freelancer not only works for his or her own account but can also take charge! Room to take charge is required. The minimum rate is not a guideline, we believe that going market rates should be calculated.
The DBA Act offers a lot of ambiguity. A part of the law is the minimum rate. Despite the fact that the minimum hourly rate is difficult to set because it is possible to work on the basis of all-in rates or on commission, it is important that the average hourly rate is above 15 euros excluding VAT. This will prevent exploitation and false self-employment. If the rate is less than 15 euros, then, as a rule, this is considered to be an employment contract and we do not pay. We do not ask you to recommend us but to work with an administrator to see how they can be placed on your payroll.
Occasionally we get the comment from clients that in an employment relationship the minimum wage is lower for people between the ages of 18 and 21 and they ask why this is not also the case for freelance. If you work as a freelancer, you work at your own expense and risk and you take control of your income. A minimum rate is required for this. Apart from the fact that we find 15 euros on the low side, we find it even less exploitative and unfair. Someone hires you for his or her capacities and that is not age-related! Recently, the European Commission for Social Rights of the Netherlands ruled on this matter.
If the rate is less than 15 euros, we cannot guarantee fair conditions. Should a subsequent conflict arise with the contractor, an authority such as an insurance company, the Tax and Customs Administration, the Labour Inspectorate or the Employee Insurance Agency (UWV), we will expressly distance ourselves from this. The client or contractor cannot then rely on any security that we offer. If we find out, we can suspend and/or terminate the agreement without prior notice, without being liable to pay remuneration to the client or contractor in any way, and where necessary, we will report this to the competent authorities.
When a rate of less than 15 euros is applied, it is usually an employment relationship. As the client, the invoice will not have a liberating effect and the tax authorities can assess the payment as net salary, on which wage tax and social security contributions will still have to be paid. The tax authorities can also impose a fine of up to 10 percent with a maximum of 5,000 euros for the fact that no and/or late returns have been made. Finally, the contractor can be seen as an employee who falls within the scope and collective labour agreement under which the client works.