As a ZZP you're meant to provide for your own pension, sick leave, disability insurance. No way what Uber pays is going to cover that.
This is why they're doing it of course, to avoid having to provide those things. But those are statutory rights in the Netherlands. And for good reason, otherwise if someone becomes disabled it ends up on the state's plate. We don't leave people by the side of the road if we can help it.
This assumes the meaning of freelancers is being able to join and leave an employer when you want, and not being able to fix your own prices and refuse gigs like others are saying. I think you should be able to open a freelance provider with restrictions, as Uber is doing. I see no reason to outlaw that.
What country is that? US, the only country that its politicians actively lobbies against universal healthcare, healthcare that is successfully implemented in every! f*ing! other! Western country?!! (and quite a few other countries that are not Western, such as my full of corruption Eastern Europe one)
You see it that way, but the Dutch law doesn't. If the freelancer has no real choice and cannot dictate his/her own terms they are not a freelancer but an employee without the benefits of an employee. Social programs should be displayed these days on your paycheck if you are an employee. Not every (administration) company is doing it properly though.
Forcing freelancers to work more hours for less than a sustainable minimum pay solves nothing as the minimum wage is calculated on a full workweek.
I'm sure Uber is allowed to offer freelance work, but not with the current way of doing business. As soon as they let the freelancer dictate the pay (or at least properly negotiate) it looks they will be fine.
So you might pay a 10% social security tax, and the employer might be paying an additional 15% that doesn't appear on your payslip.
That's what Amazon, etc. are talking about when they say they pay a load of employment taxes.
That's also why a lot of countries are eying the gig economy with skepticism, it's actually often just a massive tax dodge for the company to not pay employment taxes.
Then, ah... who's driving the Ubers in the Netherlands and why? Is there some credible evidence of coercion at hand?
Whatever the reason, good on the Dutch and the union not letting them trample on their values by these "honorable" folks and their values, here is the hall of shame: Wednesday February 22: Cocaine and groping. Thursday February 23: Investor betrayal and accusations of stolen technology.
Fowler, a former engineer at the company, alleged in a blog post that she was sexually harassed at Uber and experienced gender bias during her time at the company. She claimed that one manager propositioned her and asked for sex, but her complaints to HR were dismissed because the manager was a high performer. She said Uber continued to ignore her complaints to HR, and then her manager threatened to fire her for reporting things to HR.
Isolated incident? Not so Employees did cocaine during a company retreat and a manager had to be fired after groping multiple women, according to the report. Former employees said they'd notified Uber's leadership, including Kalanick and CTO Thuan Pham, of the workplace harassment.
Google, another Uber investor(!!!!), sued the company for intellectual property theft.
Uber's SVP of engineering stepped down over sexual-harassment allegations at his former job at Google.Singhal went through the standard background checks before his employment at Uber and that the sexual-harassment allegations during Singhal's time at Google never came up.
The New York Times revealed that Uber has been secretively deceiving authorities for years with a tool called 'Greyball'
Escort karaoke bar visit in Seoul, After the evening, a female Uber employee told HR that the trip made her uncomfortable.
Uber delays the investigation into workplace harrasment after information pours in from "hundreds" of its employees
Apple CEO had threatened to yank Uber from the App Store if it continued to violate the App Store's terms and conditions. As an act of fraud prevention, Uber had affixed a small piece of code that could tell if someone was using the same phone over and over again and then wiping it to take advantage of promo codes
Waymo accuses Uber of creating a shell company to bring on a former Google engineer.
Disruptive business practices, eh?
All this stuff you're talking about is ancient news from like 4 years ago. Since then, the entire C-suite left, including Kalanick and Thuan (Singhal spent virtually no time at Uber), not to mention crazy high attrition rates at all levels, and several rounds of layoffs to top it all off.
Since then, greyball and its ilk got shutdown, the CSO got fired for hiding a leak, HR ramped up from its comically understaffed numbers, and Uber even "fired" a board member for making a sexist joke.
The only high profile scandal under new management that I recall was the Tempe SDV death, and that division got sold off to Aurora...
So you are saying the new c level are something like angels and saints? https://lawstreetmedia.com/tech/uber-officers-and-board-memb...
If I wanted to make claims about saintness, I wouldn't bring up Tempe, I would've brought up the stuff about the CLO leading equality efforts (him being a black person), or the stuff about Afghanistan relief donation matching and other similar initiatives. But like said, I'm not interested in playing good-guy-bad-guy games, and I'm perfectly content w/ characterizing Uber as a company seeking profits just like Microsoft, Google or FB or whoever else is getting a stink eye these days.
You're free to be cynical, but doing so by cherrypicking only stuff that supports "your" side is kinda intellectually dishonest. </two-cents>
Too many people think that the only people that drive for Uber are people that need it for Full Time employment.
There are lots of people that use it for extra income, that is who these types of laws hurt the most
The current situation allows Uber to play its employees against the state (as they're very transparently trying to do in the referenced article with their remark that their employees (because that what they are) would prefer to be self employed, which is nonsense only when compared with the situation where Uber would not employ them at all. The vast bulk of the employees really would like steady employment.
So the tax dodge should stop but not through fixing the tax loophoes, but simply by recognizing that which is already the fact on the ground: that these people are employees in all but name. Note that this is Europe where - to many American companies' surprise and detriment - it is not only the letter of the law that matters but also the intent of the law, in this case the intent of labor law here is to ensure our social contract continues to function. Hacking your way around that like you can do in the United States - where it is the letter of the law that matters far more than the intent - is going to be met with significant pushback from the courts.
That's why different countries have various guidelines, e.g. if you economically depend on 1 contrahent (you fill in one invoice a month to the same one company), you are not self-employed, if you can't organize your own work however you like you are not self-employed, and so on.
So in general if you are driving for one company and 75% revenue comes from them, you are really not a freelancer.
This was and to a degree still is a big problem in e.g. Poland, where if you are unskilled you can be compelled to accept so called "trash contracts" which deny you any employee rights, but you are cheaper to the employer who exploits you.
It might be foreign to Americans who in general have extremely poor worker protection laws (even worse than the trash contracts I mentioned), but in many other countries it doesn't really work like that.
If this was possible then every company would say:
"We don't want to have to bother to pay your vacation days, sick leave(for as long as you are sick), maternity/paternity leave(up to 12 months in most European countries), or to have to give you a permanent contract with limited termination grounds, so 'choose' to become Freelancer that works 40 hours a week for us or we will fire you".
It's true there are some people who like to work as you describe, I know some myself, but experienced software developers are a outlier case who are in an extremely fortunate position, not something the law should be optimised for at the expense of the majority.
But that would increase government expenses because many more people would become eligible for the benefits. Using businesses as a proxy lets society implicitly restrict the quantity and quality of those benefits to certain people.
How does this make sence - are we meant to move you on government payroll for the 1 week you have the flu and can't work? Should the government pay for your annual leave?
Additionally, this idea will incentivise employers to destroy human capital - like an employer could drive their employees to burnout and then discard them because they bear no consequences.
This is already happening to a large extent thanks to gig economy- Uk employers have cut their investments in staff training by 2.4 billion since 2011.
You should have enough savings set aside that going without a paycheck for at least a week or two won't put you in dire straits—the official recommendation is actually several months. Anyone who is self-employed is already managing their own (unpaid) vacation time and medical leave. It is the expectation that income is guaranteed even when you aren't working—that you can safely live paycheck-to-paycheck without planning for the future—which is unreasonable.
UBI doesn't really count as "planning for the future" unless it's somehow contractually guaranteed for life and not subject to being curtailed as a result of shifting politics. A social program instituted with the passing of a bill can be limited or revoked in the same way at any time. If the goal is to ensure a predictable income stream then a fully-funded, non-revocable trust or annuity for the benefit of a specific person is a much more stable option.
> … like an employer could drive their employees to burnout and then discard them because they bear no consequences.
Just assume that an employer will take whatever an employee is willing to give regardless. It's the employees' responsibility to push back and manage their own work-life balance. It would be unreasonable (as in: an obvious conflict-of-interest) to expect employers to prioritize employees' welfare over their own.
We have tried 'maximum capitalism' experiment in the 1800's: it gave us children in coal mines working 10 hours a day and dying of blacklung. It gave us people in workhouses losing their hands because the steam press malfunctioned and then starving to death because they have no way to support themselves.
Do you want goid old days back, or do you have good reason to believe it will be different this time?
you know the reason these things are payed for by bussiness right?
most social welfare programs are created after world war 2, because the alternative was the workers simply seizing the wealth of their former bosses by force.
OP seems to greatly understimate how close most countries in europe came to a mass revolt of civil war after world war 1 and world war 2. (1848 revolutions are also an important time in history for civil rights).
the dutch for instance, have a constitution thanks to the threat of revolution in 1848. The alternative was the threat of revolution and the violent end of the monarchy.
The same is basically true for labour rights. In most european countries these got implemented after world war 1 and during the great depression, a time in which a lot of people got destitute and had acces to weaponry.(World war 1 also left a massive social trauma in many nations, leading to revolutions because of its effects on society).
E.g. I'm in the UK. I've been a contractor with multiple contracts as well as with a single employer both in situations where they are obviously acting as an employer, and in situations where they were genuinely not.
Here there's specific legislation to handle this now - "IR35", which ensures that if your contract is equivalent to employment you'll be taxed accordingly, with an "umbrella company" acting as an employer on behalf of the company that you're contracting with if that is the case to prevent there from being a tax advantage from pretending to be freelance if you're in effect an employee. It doesn't stop you from doing it - it just takes away the tax advantage and creates some bureaucratic hurdles.
But it's easy to avoid as long as you're not trying to avoid taxes, by setting terms that ensures it doesn't match the criteria. Employers are often keen to do this, and it gives you extra negotiating power.
E.g. when I was doing this, key points involved the fact I had a small marketing budget to bring in additional work, I didn't usually work out of their office, I controlled my own hours, I determined how to carry out the work, I negotiated my day rate, the contract had a defined end-date (we could renew, but there are pitfalls there), and so on. Another strong sign you're genuinely not an employee is a right to substitution (e.g. if you can provide someone else to do the work, when you're not available and that right is genuine). UK tax authorities (HMRC) has a checklist as to what they consider "deemed employment" and or that falls under IR35 (it's not an absolute set of criteria, but basically the more you look like a business, the more likely you are to be considered one).
So for high earners like software consultants with an actual reasonable power balance vs. the other side, this is rarely a problem. It cost me a tiny proportion of my revenues to make sure that I met more than enough criteria to be able to do as I pleased.
But most of the people these regulations are there for are in a substantially weaker position. If you're a low enough earner to not be in a position to work around this, then you're not likely to have the power to genuinely negotiate either.
It's unavoidable, since different countries have different worker protection systems. For instance, some of these countries have to pick up the tab when employers cheat their way out of paying their dues.
I've hang out with my fair share of taxi drivers around the world (mainly Europe and South America) but never once heard of them being forbidden of not accepting customers, and heard plenty of stories when someone really fucked up tried to hail them but they declined. It doesn't mean it's not forbidden, but hard to reconcile my understanding.
What places are you specifically thinking about where taxi drivers are not free to chose their customer?
Human Transportation Act §22 Duty to Transport.
For example in my part of the UK, only designated taxis can pick up ride hailers on the street, sort of like black cabs in London.
Private firms who use their own fleet of cars can only offer pre-booked services, e.g. pre booked airport runs.
Uber and co. shook this up a bit by offering a grey area, where the taxi ride isn't exactly hailed on the street (instead through the app) and is sort of "pre-booked" when you request it as the driver has to accept the job.
Yeah, that makes sense, that's the only thing I've seen around the world as well. But can these designated taxis reject customers at will? That was my question.
UK:
"Cabbies can be penalised for refusing passengers" https://www.lta.gov.sg/content/ltagov/en/newsroom/2019/8/3/c...
Canada - Montreal:
https://ville.montreal.qc.ca/pls/portal/docs/page/bur_taxi_f...
"Le titulaire d'un permis de chauffeur de taxi ne peut refuser d'effectuer une course"
France:
"Normalement, un taxi n'a pas le droit de refuser une course sauf si vous êtes à 50 mètres d'une borne de taxi et qu'un taxi attend à cette borne"
https://www.europe1.fr/societe/taxi-ce-qui-est-legal-et-ce-q....
and so on...
Most places have lots of rules forbidding you from working under certain conditions or doing a job any way you want to do it.
I mean, that's some niche requirements there, I would categorise it as serfdom.
I am onboard in principle - I want try all the psychedelics, fly a plane without a licence and experiment with explosives for education purposes, but as R v Copeland shows, the law can't cater to everyone - tradeoffs have to be made.
You can certainly take that approach if you want, though. As an independent driver you own all the capital equipment in this business (your car) and you can stop working for Uber at any point without penalty and start offering rides under your own brand, on your own terms. However, you'll find that you still need to meet certain standards as to price and reliability if you want people to choose you over calling an Uber. Working for yourself doesn't mean you get to do whatever you feel like all the time without any commitments.
But I don't drive a taxi, I do computer stuff. If you want to legitimately be independent in NL you can. I have a few friends in the construction industy(plumbers, carpenters, electricians, etc) who are ZZP'ers.
There are a few options open to people who legitimately want to be independent in their work, and this has absolutely nothing to do with this ruling. Or about Uber.
Uber is lying when it says that 90% of Dutch Uber drivers want to remain independent. There have been protests of Uber drivers wanting exactly this kind of ruling from the courts. And two major political parties (Groenlinks and PvDA) have been fighting for this. Uber is full of shit and they know it.
Here is a better article on the ruling. https://www.ad.nl/werk/rechter-uber-moet-chauffeurs-in-diens...
BV starts to make sense from about 100K turnover because you gain some tax advantages, it also makes working for larger entities easier and it allows you to charge a higher rate and to be in an easier position to work with subcontractors. It all depends on what you want, there are plenty of ZZP'ers in software development on the low end, but most of the high end will be through BV's.
As far as I know, and I am happy to be corrected by somebody more knowledgeable, the famous Dutch ZZP'ers are tolerated. There is in the Dutch Law not a clarification of their legal and tax position:
So there's nothing to "tolerate" but money. ;)
Both have more or less the same tax and structural advantage (like limited liability, a far easier time to get acknowledged by social security, etc)
The main difference is capital requirements and more formality for the AG. For example: The law requires yearly external audits for an AG, while that's not necessarily the case for a GmbH.
Does Holland also make such a difference, or is BV the only such corporate form?
Note: Differences listed apply for Switzerland. It could be different in Germany.
Private limited company (BV or besloten vennootschap)
or
Public limited company (NV or naamloze vennootschap)
The BV is like a Ltd in the Anglo Saxon world and the NV is your company with equity defined by shares/stocks.
you can also have:
Cooperative (coöperatie)
Association (vereniging)
Foundation (stichting)
Nice overview(s) for Germany and most other countries with comparisons where appropriate.
Regarding the AG in Germany and required regular external auditing, in my university course where I learned about the charasteristics of the most common German legal entities [0], there was no such requirement listed or talked about, maybe that's only for Switzerland?
The GmbH on the other hand requires a minimum capital of 25.000€ and is expensive to form (from the course mentioned above >1.000€ in fees for notarizations etc.) which is one reason why the "UG (haftungsbeschränkt)" (essentially "baby's first GmbH") was established a while ago. A UG only has to have a minimum of 1€ in starting capital but has to
> "enlarge its capital by at least 25% of its annual net profit (with some adjustments), until the general minimum of €25,000 is reached (at which point the company may change its name for the more prestigious GmbH)."
Further reading: https://en.wikipedia.org/wiki/Entrepreneurial_company_(Germa... https://en.wikipedia.org/wiki/Gesellschaft_mit_beschr%C3%A4n...
[0]: as part of the subject "Finanzwirtschaft"/"Managerial finance?"
Forgot to insert the following link after the above sentence and can't edit anymore:
https://en.wikipedia.org/wiki/List_of_legal_entity_types_by_...
Also your threshold of 100K does not align with my accountant's, who said it was at least 200K to justify the added overhead.
- You work for yourself so you get 100% of the risk
- You have no benefits
- If you are sick you get no pay, unless you make a very expensive work sickness/income insurance
the Dutch tax office, judges that they do not want you to be in a "too advantageous fiscal position" ...( Not making this up...these are their own words) so, forces you to pay yourself a minimum yearly salary that is updated every year so they can tax you. It is currently at 47,000 EUR per year I believe...and is independently of you making money or not...
There is a fundamental principle here, and that is the tax office considering that, unlike a permanent employee who cannot be fired and has almost no liability, an entrepreneur, despite taking all the risk and having non of the benefits, is judged that it should be forced into the same tax position. Where is the upside then?
This coming from the same tax office, that has enabled some of the biggest tax dodgers in the planet:
"Netherlands earned €25 mil. from Google's tax avoidance"
https://nltimes.nl/2021/01/13/netherlands-earned-eu25-mil-go...
"Forget about the Gates Foundation. The world's biggest charity owns IKEA—and is devoted to interior design"
https://www.economist.com/business/2006/05/11/flat-pack-acco...
"Netherlands world's 4th biggest tax haven"
https://nltimes.nl/2021/03/09/netherlands-worlds-4th-biggest...
"The Netherlands is still one of the world's main tax havens, coming in fourth place on Tax Justice Network's biennial ranking of tax havens. Only the British Virgin Islands, the Cayman Islands and Bermuda scored worse than the Netherlands when it came to tax avoidance."
Yes people laugh off drivers as a no skill job, but it's a craft. Shift work, passenger safety and so forth, they need to pass a test, sure that's a bit outdated in the time of online maps.
But I can not simply open a dentistry just because I feel so due to lifestyle choices.
Had that in Washington DC once, but magically the machine fixed itself when I said I had no cash and he'd have to get the police.
A lot of drivers still use unapproved card devices, though (TFL points out handheld terminals are explicitly not approved, yet I regularly have taxi drivers insist their fixed terminal isn't working, and to use a handheld one), which I'm taking means there's assorted tax fraud going on.
As a passenger I feel it's a significant qualitative difference if I have a driver who knows his way around town compared to one who obviously and fixatedly relies on the GPS.
The vaunted "knowledge" failed miserably as he pulled over to drop me off -- I looked up and saw we were just south of Tower Bridge. he clearly hadn't got a clue. I said "just take me to Southwark tube station". I know there's all sorts of one way systems but when he was heading to Bermondsey I just told him to let me out and got the tube (well tried to - Southwark was closed, so ended up at Waterloo and having to walk)
Uber just works because it's not based on a system from 1865.
Obviously this takes the company to provide those sorts of jobs. The problem for Uber is that they won't be able to —as easily— have slack staff, because they'll have to pay them minimum wage to wait for new fares.
Uber wants it both ways, and correctly, the courts have stopped them from doing so.
That's news for me.
Where I live, every single taxi driver has an app open for every uber-like company in the city, including Uber (there are at least four that I know of, most certainly more).
They just pick what they feel like at the moment.
How this is not freelancing I cannot fathom.
Plenty of old fashioned taxi companies that operate via a phone number or text messages. You don't need Uber if you want to be a freelancer. And as a court ruled, you're not actually a freelancer if you work for Uber.
Now what would be nice is if someone would start a service, say a mobile-web-first service, that a bunch of independent cab drivers could sign up for. Then that service would act as a dispatcher (taking a cut of the fare), and send a dispatch message to whichever independent cab driver is closest by. Of course that sounds a lot like what Uber is doing. Which then goes back to, are these drivers independent, or are they working for that dispatch service?
To make it truly independent, they would need to have more than one dispatch service that they could work at the same time (say both Uber and Lyft). And have a protocol so that dispatches from both services don't step on each other. Plus the ability for a customer to flag them down at random. Now they really are a self-employed contractor using these services as customer discovery / dispatch services.