False self employment is one of the biggest legal risks for Belgian IT consultants. The ONSS can re classify a freelance relationship as a disguised employment, triggering retroactive social contributions, interest and fines for years of past invoices.
What is false self employment?
A worker is considered a false self employed when they invoice as a freelancer but the working relationship has all the characteristics of an employment contract. The label on the contract does not matter, only the reality of the relationship.
The 4 general criteria
- Will of the parties as expressed in the contract
- Freedom to organise working time
- Freedom to organise the work itself
- Absence of a hierarchical control by the client
If three of the four point towards employment, the ONSS will likely re classify the relationship.
IT specific risk factors
- Full time presence on the client site for many months
- Single client representing 100% of revenue
- Use of client equipment, badge and internal tools only
- Daily reporting to a client manager
- Fixed working hours imposed by the client
Does an own company protect you?
No, not absolutely. The ONSS analyses the reality, not the legal form. An SRL with a single client, full time on site for years and supervised daily is still at high risk of re classification.
The consequences
- Back ONSS contributions on up to 7 years of revenue
- Default interest of 7% per year
- Administrative fines
- Personal director liability if the SRL cannot pay
The safest route
How to stay safe if you run your own SRL
- Diversify your client base across at least 2 to 3 active clients
- Use your own equipment where possible
- Document results in writing, not hours present
- Avoid signing into client tools as a regular employee