Reducing the risk of fictitious employment
Mr Th.R. Ludwig – Franchise attorney
Recently, the new Minister of Social Affairs, De Geus, made the choice that he wants to put an end once and for all to the discussion whether there is self-employment or a disguised employer/employee relationship among the self-employed (without personnel). This problem also occurs in the business services sector.
Testing by the Employee Insurance Agency (UWVs), former industrial associations and/or administrative agencies, yields varying results in the case of franchise relationships, among other things. If the self-employed person in question is regarded as a fictitious employee, whether or not with retroactive effect, this entails that social premiums and wage tax are (still) owed by the franchisor and/or franchisee to the relevant UWV and/or the tax authorities. . Whether there is an obligation to take out insurance depends on a number of criteria. The most important are capital, risk and so-called other characteristics. Specifically, the following matters are important:
Does the franchisee have independent working capital?
Has the franchisee actually made investments?
Does the franchisee have independent debtors and creditors and is his income uncertain and variable?
Does the franchisee trade under its own name or under another name?
Does the franchisee advertise independently?
Does the franchisee keep independent accounts and, if relevant, is he charged for sales tax?
Although these criteria will remain important in practice, the Minister has now ruled that there is only an insurance obligation if the self-employed person has committed fraud with the aim of circumventing the insurance obligation. The minister therefore opts for a very considerable expansion of the concept of independence in order to prevent unwanted or unintentional (too fast) arrival at compulsory insurance and the establishment of a fictitious employment relationship. It therefore seems likely that the risk of this will be significantly reduced in the very short term.
Ludwig & Van Dam franchise attorneys, franchise legal advice
Other messages
Column Snack courier no. 8: “With 7 steps you comply with the privacy law”
Much has already been written about the General Data Protection Regulation (GDPR). The law has been applicable since 25 May, but many companies have not yet had their privacy policy in order.
Forced to switch to a different franchise formula at the existing location?
If a franchise formula ceases to exist, for example if it is incorporated into another organization, the question may be whether the franchisee is also obliged to be incorporated into
Column Franchise+ – 50 percent more franchise lawsuits
The 2018 Legal Franchise Statistics published by Ludwig & Van Dam Advocaten shows that there has been a 50% increase in the number of judgments in court cases rendered in 2017 compared to
A closer look at the intention to introduce franchising legislation
On May 23rd, State Secretary Mona Keijzer informed the House of Representatives about the imminent franchise legislation. The National Franchise Guide previously published this article.
Consumer Protection Applies to Franchisee
The consumer enjoys broad protection on the basis of the Civil Code.
Update Franchise Law
On 23 May 2018, the government indicated that it would prepare a legal regulation that creates a framework for four sub-areas of cooperation between franchisors and franchisees that are crucial