The question seems simple: is this person an employee or a self-employed person? But in practice, the answer that has been fought for years in courts, in politics in The Hague and before the tax authorities is anything but simple.
The Clarification of Employment Relations and Legal Presumption Assessment Act - the VBAR - should finally change that. With a structured assessment framework of three equivalent categories of indicators, the law replaces the much-criticized DBA Act. The intended commencement date is July 1, 2026.
But what do these criteria mean in concrete terms? And how do you know where your situation stands?
The most important insights
- The VBAR replaces the DBA Act with a structured assessment framework based on Supreme Court case law in Deliveroo and Uber cases. The intended commencement date is July 1, 2026 - without a transitional arrangement.
- The law assesses employment relationships on the basis of three equivalent categories: W indicators (employment), Z indicators (independence) and OP indicators (entrepreneurship). No one category outweighs the others.
- It's always about reality, not the contract. A carefully drawn up assignment agreement offers no protection if daily practice says otherwise.
- New: the legal presumption of employment. Does a worker earn less than around €36 per hour? Then he or she can claim to be an employee - and the burden of proof lies with the client.
- In addition to the VBAR, there is an alternative bill: the Self-Employed Persons Act. It takes a more market-oriented approach, but the practical implication is identical: you need demonstrable proof of how the employment relationship works in practice.
- Good time registration is not an afterthought - it is your strongest proof. Those who have no data have no defense.
Why the VBAR is coming
The DBA Act has existed since 2016, but it created more confusion than clarity. Clients and freelancers did not know where they stood. The tax authorities barely enforced. And model agreements turned out to be of little value in practice.
Meanwhile, the judge increasingly showed the way. In the Deliveroo case (2023) and the Uber case, the Supreme Court ruled that the reality of the employment relationship determines whether someone is an employee - not the form of contract. The VBAR codifies exactly that reasoning in legislation.
The result is an assessment framework with three equivalent categories. They are each weighted separately, but together they determine the outcome.
📚 Read all about this HR changes from 2026 and 2027.
The three criteria of the VBAR
The three criteria are described below.
W indicators: signs of employment
The W indicators signal that someone is functioning as an employee - even if there is something else in the contract. It's about the degree of embedding in the organization and the degree of control.
Examples of W indicators:
- The client decides when, where and how the work will be carried out
- The working one follows internal schedules or attendance requirements
- There is supervision, control or performance reviews
- The working one is structurally embedded in teams, meetings and reporting structures
- The work is carried out with the client's tools, systems or locations
What this means in practice: An IT specialist who works full-time at the customer's location, uses the customer laptop and participates in the daily stand-up scores high on W indicators - no matter what the order confirmation says.
Z indicators: signs of independence
The Z indicators show that someone is actually operating independently. It's about autonomy in execution and bearing the deductible.
Examples of Z indicators:
- The worker decides how, when and where the work is done
- There is a deductible financial risk: in the event of a bad outcome, the worker bears the consequences
- The worker uses his own material, tools or equipment
- The employee has specific knowledge or expertise that the client does not have in-house
- There is no direct supervision or daily management
What this means in practice: An architect who delivers a design based on an obligation to achieve results, uses his own tools and is free to plan, scores high on Z-indicators - even if the project takes a long time.
OP indicators: signs of external entrepreneurship
The OP indicators test whether someone behaves as an entrepreneur in the market. This goes beyond the assignment itself — it's about the broader entrepreneurial profile.
Examples of OP indicators:
- The worker serves multiple clients and can demonstrate this
- The worker pays VAT and has an active Chamber of Commerce registration
- The worker invests in their own company: training, marketing, equipment
- The employee demonstrably spends time on acquiring other customers
- The worker has its own business identity: website, LinkedIn, quote process
What this means in practice: A consultant who actively offers other customers, has his own website and sends VAT invoices scores high on OP indicators - even if he or she regularly works for the same client.
How does the weighting work?
The three categories weigh equally. There is no formula that determines the outcome - it involves an overall assessment based on all relevant circumstances.
A rule of thumb: more W points than Z and OP points combined? Then there is a risk of false self-employment. But the severity and weight of individual indicators also count. One weighty W indicator can have more impact than three light Z indicators.
What the VBAR emphatically does not do: provide a checklist where you reach a certain number of points and are therefore safe. The assessment remains context-dependent - and the tax authorities always look at the overall picture.
The legal presumption of employment
In addition to the three criteria, the VBAR introduces a new tool: the legal presumption of employment. This applies to workers who earn less than approximately €36 per hour — probably €38 in 2026.
What does this mean?
A worker who earns below this threshold can claim to be an employee. The burden of proof then shifts entirely to the client, who must demonstrate that there is real independence.
Why is this relevant?
For many sectors — including administration, healthcare, education and some IT functions — rates are regularly around or below this threshold. Clients who work with freelancers in these sectors are at increased risk and must have their file formation in order.
What can you do now?
- Identify which freelancers work below the hourly rate threshold
- Provide watertight documentation of their independence: multiple clients, own tools, acquisition activities
- Consider reviewing tariff agreements if the relationship is demonstrably independent
VBAR versus Self-Employed Persons Act: What's the difference?
In addition to the VBAR, there is an alternative bill: the Self-employed Act, submitted by VVD, D66, CDA and SGP. Both bills are currently being passed through the House of Representatives.
Regardless of which proposal is adopted, the core remains the same: you need structured, reliable data about how employment relationships work in practice. The Self-Employed Persons Act does not make demonstrable entrepreneurship less important - rather, more.
📚 Learn more about Self-employment law and bogus self-employment: what you need to know in 2026—2027
What does this mean for time registration?
The VBAR assesses reality - and reality is in your data. How were hours recorded? By project results or by attendance hours? Did the self-employed person also work for other clients? Was it invoiced independently?
Those who do not have structured time data cannot answer those questions.
TimeChimp supports you with:
- Transparent time registration: for freelancers, flex workers and permanent employees - with a complete, unchangeable audit trail per project and client
- Project Management: assignments transparent by client, scope and result — exactly the structure that the Z and OP indicators require
- Approval workflows: internally and via the customer portal, so that approved hours are digitally recorded
- Reports: quick insight into contract forms, hours patterns and deployment per client
Conclusion
The VBAR is finally making the assessment of employment relationships more concrete - but not easier. The three criteria require an honest look at how work takes place in practice, not how you have formulated it on paper.
For clients, this means: make sure you can demonstrate what the reality is. For freelancers: make sure that reality really reflects independence.
The most important dates to keep an eye on:
- July 1, 2026 (intended): VBAR Act enters into force, replaces Act DBA — without transitional arrangement
- From 2026: Offence fines possible in case of gross negligence under the DBA Act
- January 1, 2027: End of soft landing — standard fines without exception
👉 Do you want to know how TimeChimp helps you to demonstrably record employment relationships? Start a free trial
