DBA Act: Handy Checklist for Freelancers & Clients

ZZP

4.12.2024

Freelancers and Clients: Ready for the Enforcement of the DBA Act Starting January 1, 2025?
Use this handy checklist for a final review!

DBA Act Enforcement Starting January 1: A Brief Overview

Clarity between freelancers and clients. That is what the enforcement of the DBA Act, starting January 1, 2025, aims to achieve. The government wants to prevent false self-employment, so the collaboration between clients and freelancers must comply with the DBA Act.

The checklist!

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Collaboration based on results

Provide a clear description of the end result

In a collaboration that complies with the DBA Act, the focus is on the end result. The client may not dictate how the freelancer should carry out the work to achieve the result.

So:

  • Provide a clear description of the end result. Define it SMART, for example:
    Setting up a hybrid cloud infrastructure within six months.

Points of attention:

  • Avoid detailed work instructions
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Freedom in execution

The freelancer makes choices about work methods and hours

Self-employment means that the contractor decides how the work is carried out.

So:

  • The freelancer must be free to choose work hours, tools, and methods.

Points of attention:

  • Avoid restrictive agreements on fixed working hours or specific tools, unless strictly necessary.
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Liability and insurance

Define responsibilities and risks

Freelancers are responsible for their work and the associated risks.

So:

  • Make agreements about liability and, as a freelancer, check your own insurance.

Points of attention:

  • Avoid unclear agreements about who is responsible for any mistakes.
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Clear duration and termination

Define the duration of the assignment and termination conditions

A clear start and end date, or a defined end goal, prevents misunderstandings.

So:

  • Define when the assignment starts and ends, and under what conditions it can be terminated.

Points of attention:

  • Avoid open-ended contracts without an end date or clear delivery conditions.
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No integration into the organization

Maintain the external position as a freelancer

A freelancer must not function as part of the internal organization.

So:

  • Ensure that the freelancer is only involved in matters directly related to the assignment.

Points of attention:

  • Avoid participation in internal activities such as meetings or social events that are unrelated to the project.
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No authority relationship

The freelancer works without direct supervision, the client evaluates the end result

A DBA-compliant collaboration requires that the client does not take on a managerial role. The freelancer must be able to make independent decisions about how to carry out the work.

So:

  • The freelancer decides how the assignment is carried out. The client is limited to evaluating the end result.

Points of attention:

  • Avoid daily instructions and control moments like those with employees.
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No obligation for personal labor

Allow replacement

The freelancer must have the freedom to be replaced, as long as the quality of the work is ensured.

So:

  • Specify in the assignment description that replacement is possible and define the conditions for this.

Points of attention:

  • Avoid requiring that a specific person must perform the work, unless it involves unique expertise.
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Financial agreements

Payment based on the assignment, not like an employment contract

The payment must align with the project, without labor-related components such as vacation pay or sick leave compensation.

So:

  • Agree on a fixed rate per project or hour.

Points of attention:

  • Avoid payments that resemble a fixed monthly salary.
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Use of own materials

Ensure that the freelancer works with their own resources

As a freelancer, you should use your own equipment, tools, and software.

So:

  • The freelancer is free to choose their resources. Limit the use of company resources.

Points of attention:

  • Avoid requiring the use of the client’s resources unless strictly necessary.
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