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
Supermarket letter – 9
The C1000 Association loses appeal for inspection of the C1000 deal
Interim dissolution of the franchise agreement by the franchisee in the event of loss-making operation possible?
The Court of Appeal recently rendered a judgment in a matter that is very relevant to the franchise practice.
Those who are orienting themselves as a candidate franchisee can contact the association of franchisees, the BVFN.
Those who are orienting themselves as a candidate franchisee can contact the association of franchisees, the BVFN.
mr. Strong litigates for C1000 entrepreneur with wrong prognosis
mr. Strong litigates for C1000 entrepreneur with wrong prognosis
Newsletter – The National Franchise Guide: Hospitality sector: new times, new franchise formulas?
According to data published in March 2015 by Statistics Netherlands in the Horeca Quarterly Monitor
Continue to serve (existing) customers after termination of the franchise relationship
Continue to serve (existing) customers after termination of the franchise relationship