Netherlands: Supreme Court Expands Definition of ‘Entrepreneurship’ in Employment Classification

The Dutch Supreme Court have clarified how to assess whether a worker is an employee or an independent contractor.

It ruled that both internal (e.g., financial risk, autonomy) and external (e.g., multiple clients, business registration) forms of entrepreneurship must be fully considered when determining employment status.

This decision arose from a case involving Uber, its drivers, and the FNV union, which sought to apply the Taxi Transport Collective Labour Agreement. Uber maintained that its drivers are self-employed. The Court of Appeal referred questions to the Supreme Court, particularly about how to interpret ‘entrepreneurship’ in this context.

The ruling confirms that entrepreneurial characteristics beyond the direct working relationship are relevant. Consequently, two individuals performing the same work may be classified differently, depending on their broader entrepreneurial profile.

For employers, this underscores the need to assess both the structure of the working relationship and the worker’s overall business activity when determining employment status.

This is a high level general update only. Legal advice should be obtained on specific circumstances.