Contract for services

Flexible collaboration with freelancers: legal considerations

Many companies use independent contractors, such as freelancers or external managers. The collaboration is often formalized in a contract for services. This type of agreement offers flexibility but also comes with legal risks, especially when the line between this contract and an employment contract blurs.

Difference from an employment contract

A contract for services is NOT an employment contract. The legal distinction lies in the authority relationship. In an employment contract, there is authority of the employer over the employee. In a contract for services, that element is absent. However, in practice, it turns out that this difference is not always that clear-cut.

The Supreme Court, in the so-called Deliveroo ruling, identified factors that help to make this distinction. Consider:

• The degree of independence in determining working hours and tasks;
• The embedding of the work in the organization;
• The method of compensation and the commercial risk the contractor bears;
• The obligation for personal performance;
• How the contractor behaves in the economic market (e.g., acquisition, multiple clients).

This assessment is always based on all circumstances of the case. This makes it difficult to obtain certainty in advance regarding the classification of the collaboration.

Practical advice and contract support

The risk that a contract for services is nonetheless classified as an employment contract can have serious consequences, such as wage payment during illness or obligations for premium contributions. We are happy to assist you with:

• Drafting and legally evaluating contracts for services;
• Risk analysis on (re)classification as an employment contract;
• Support during discussions or audits by the Tax Authorities;
• Practical advice on the legal and fiscal positioning of contractors.

Prevent surprises and ensure a solid agreement

Do you want certainty about your collaboration with freelancers or managers? Have your contract for services legally reviewed or tailored.

Contact our specialists for advice that works.