The impact of the DBA Act on freelancing and the rise of Medium-lance
The Deregulation Assessment of Employment Relationships Act (DBA) has significantly changed the way companies work with freelancers. Where organisations once could hire the self-employed with little risk, uncertainty now prevails. Companies fear that the Dutch Tax Authority may classify working arrangements as disguised employment, leading to additional tax assessments and fines. This has made organisations more cautious about working with freelancers.
For the self-employed, this means less certainty of assignments and more administrative burdens to prove their independence. As a result, more and more freelancers are considering alternatives such as medium-lance, which combines stability and flexibility without the risks of permanent employment or full self-employment.
Medium-lance as an attractive alternative
Medium-lance, also known as midlance, is gaining popularity as a hybrid working model that provides security without the restrictions of traditional employment. Unlike freelancers, midlancers are employed by a staffing or consultancy firm, yet retain the freedom to influence part of their own income. This model offers freelancers a solution to the uncertainties brought about by the DBA Act.
A few reasons why professionals are making the switch:
- No hassle with the Tax Authority: Because midlancers are employees, there is no debate about disguised employment.
- Greater continuity in assignments: Companies are more inclined to hire employees than freelancers, as there are no risks linked to the DBA Act.
- Reduced administrative burden: Midlancers do not need to worry about complex regulations or model contracts, as these administrative tasks are fully managed. In addition, the model agreement no longer applies since professionals are in formal employment.
- Social security benefits: Unlike freelancers, midlancers accrue unemployment benefits and can participate in pension schemes.
Why do organisations choose midlancers?
Midlancers work under a secondment arrangement, allowing organisations to benefit from specialist expertise without the risks of a permanent contract. This ensures flexibility, fewer administrative burdens and continuity in projects. Midlancers are often immediately available and bring with them an entrepreneurial mindset, which strengthens both motivation and efficiency.
This model also provides a legally secure solution within the framework of the DBA Act. Organisations need not worry about disguised employment, additional tax assessments or fines, since the midlancer is officially employed by a staffing agency. This reduces risks and makes collaboration simpler and more transparent.
Companies hiring midlancers via G‑Nius benefit not only from flexibility and specialist knowledge but also from reduced risks related to chain and hirer’s liability. Thanks to our SNA certification (NEN 4400-1), you are assured of a reliable and legally sound partnership.
The Future of Freelancing and Medium-lance
The market is shifting. Where freelancing has long been the most popular choice for independent professionals, we now see a clear trend towards medium-lance. This is driven not only by legislation but also by a broader demand for security without the downsides of permanent employment.
Businesses want to remain flexible, but avoid becoming entangled in legal risks. Professionals want to stay independent, but without constant uncertainty over income. Medium-lance offers a win-win solution for both parties and aligns with the changing labour market.
