What is the DBA Act? What you need to know
False self-employment is the elephant in the room for many freelance assignments. Everyone wants flexibility, no one wants hassle with the Tax Authorities. In this blog, we briefly and clearly explain what the DBA Act is, its meaning for clients and freelancers, which rules apply, what may change with the new DBA Act (2025), and how Nouvelle Équipe solves that practically.
What is the DBA Act (meaning)?
The DBA Act (Deregulation Assessment of Employment Relationships) replaced the VAR and revolves around one question: is someone really an entrepreneur or actually an employee? The goal: prevent pseudo self-employment. Both client and contractor are jointly responsible for the proper setup of the collaboration.
DBA Act rules: the practice test
There is no magical one-point test. In practice, people mainly pay attention to:
- Authority & management: does the freelancer receive substantive instructions as if they are staff?
- Embedding: is the work structurally part of your organization (schedules, tools, hierarchy)?
- Replacement & entrepreneurial risk: is the self-employed person allowed to be replaced? Does he/she work with their own resources and bear the risk?
The more you shift towards 'regular' employment, the more unsafe it becomes under the DBA Act rules.
DBA Act model agreement: when and why?
A model agreement sets out arrangements that fit entrepreneurship (no hierarchical management, clear assignment scope, possibility of replacement). You can use a version approved by the Tax Authorities under the DBA Act or a legally reviewed model.
New DBA Act (2025): what is going to happen?
The direction of the DBA Act 2025 focuses on stricter enforcement and more clarity about the boundaries between self-employment and employment. Expect:
- More clarification about embedding (structural work in your core process? then quickly employment).
- More active inspections by the Tax Authority.
- Greater weight is given to the actual work situation over contract language.
Practical rule of thumb: organize your assignments to be DBA-proof now. Waiting for 'the perfect update' is asking for trouble.
DBA Act fines & risks
If things go wrong, you risk additional charges (wage taxes/premiums) and in certain cases a fine. Additionally: reputation risks, suspended assignments, and loss of talent. Prevention = cheaper than cure.
This is how Nouvelle Équipe approaches it (DBA-proof, without headaches)
1. Smart path per role
- Temporary employment/salaried employment: we are the legal employer; you have flexible staff without DBA risk.
- Hiring self-employed workers: where possible, with an appropriate model agreement, clear scope, and good work setup (management, planning, replacement).
- Payroll: for structural deployment with minimal administration.
2. Qualification scan before start
We assess role, tasks, and work method regarding authority, embedding, replacement, and adjust where necessary.
3. Contract = practice
Onboarding, briefing, and day-to-day management align one-to-one with the agreements.
4. Monitoring & updates
We follow policy and enforcement regarding the Tax Authorities DBA Act and proactively update contracts and processes.
DBA-proof in 5 steps (checklist)
1. Determine the route: broadcasting, payroll or freelancer?
2. Describe the assignment: results, deliverables, start/end.
3. Record in a model agreement (and make sure it matches practice).
4. Ensure independence: no hierarchical supervision, possibility of replacement, own planning/resources where appropriate.
5. Evaluate periodically: Role and setup still DBA-proof? If not: adjust.
Quick certainty?
Schedule a free DBA check. We review your roles and processes and advise directly: temping, payroll, or freelancer with model agreement, so you can scale without worries. Get in touch!