Sham self-employment: no fines yet in 2025

The impact of the Labor Relations Enforcement Plan 2025

As of January 1, 2025, the enforcement moratorium on labor relations is officially a thing of the past. But what does this mean concretely for tackling false self-employment? If the Tax and Customs Administration finds an incorrect qualification of an employment relationship during an audit, it can now again impose fines, tax interest, correction obligations and additional tax assessments – without first issuing a warning.

A soft landing

To ensure a smooth transition to regular enforcement, the Tax and Customs Administration is introducing a grow-in model. This model offers additional support and customization until 2026, with demonstrable efforts by parties to correctly qualify labor relations weighing heavily.
According to the Labor Relations Enforcement Plan 2025, published in late December, the Tax and Customs Administration will not impose any penalty fines in 2025 on principals or contractors who demonstrably actively work on compliance.

Risk factors

The Tax and Customs Administration takes a risk-oriented approach. With the help of a nationwide detection module, an automated search is made on the basis of objective criteria for high-risk situations where it is estimated that hiring self-employed workers may not be properly qualified. While this detection module provides valuable insights, not all signals are handled immediately. Further manual selection determines which cases are prioritized.

The future of model agreements

Current model agreements will remain valid during their term, the last ones expiring in 2029. Provided that the parties actually work according to the agreed conditions. The Inland Revenue will assess a working relationship based on the facts and circumstances as they occurred. The responsibility shifts more and more to the client and contractor themselves. They themselves must check whether their practice matches the arrangements in the agreement.

Posting sector under the microscope

The Internal Revenue Service is also looking at the growing role of intermediaries in the posting industry. Some clients are trying to shift the risks of incorrect qualifications to labor intermediaries. The Tax Authority will therefore assess the entire chain or triangular relationship, to get a good picture of the labor relations. And thus tackle false self-employment.

Need help?

Want to know what these changes mean for your organization? Our labor law specialists are ready to advise you.
Please contact one of our lawyers by email, phone or fill in the contact form for a no-obligation initial consultation. We are happy to think along with you.

For more choice help, check out the information at: Central government – Preventing Sham Self-Employment.