Corecom Consulting: Engaging Temporary IT Talent in the Netherlands
Hiring IT contractors in the Netherlands requires a thoughtful approach, especially now that the DBA law is fully enforced. Compliance is more important than ever, and choosing the right model is key.
At Corecom Consulting, we offer fully compliant solutions for engaging freelance and temporary IT talent. Read on to find out how businesses can hire contractors without risk.
1. ZZP Freelancers (B2B Model)
The ZZP (Zelfstandige Zonder Personeel) model is a great option for freelancers who prefer working independently while benefiting from a streamlined, professional approach. Under this model:
- ZZP contractors are self-employed and invoice Corecom
- We manage contracts, compliance & payments before invoicing the client
- The freelancer is responsible for managing their own taxes, pension, and insurance -giving them the freedom to set up their own financial strategy and future planning.
Key Benefits of using ZZP
- Lower cost – no payroll taxes or social security contributions
- More flexibility – Contractors work independently
- Ideal for short-term or specialist IT projects
Things to consider when using the ZZP Freelancers model
One important factor to keep in mind is the DBA risk. Misclassifying a freelancer can lead to significant tax liabilities for the client, so proper classification is crucial to avoid unexpected legal and financial complications later in life.
Another consideration is knowledge retention. Freelancers are expert consultants who typically work with multiple clients, focusing on delivering specific results. However, their temporary role can sometimes lead to gaps in knowledge retention.
2. Temporary Payroll Employment (Deta-vast & Secondment)
With the Temporary Payroll Employment model, Corecom takes on the responsibility of employing the contractor directly while leasing their services to the client. This approach offers a seamless and efficient solution:
- The contractor is officially employed by Corecom and leased to the client.
- We manage payroll, taxes, social security & employment rights, eliminating any DBA risks for the client, ensuring full compliance with local regulations.
- The client simply pays a fixed rate, covering salary, employer costs & Corecom’s service fee – providing clear, predictable costs for the duration of the engagement.
This setup allows businesses to focus on their core operations while we handle the administrative complexities.
Payroll Options
Deta-vast (Temp-to-Perm Placement)
With the Deta-vast model, the contractor begins working under Corecom’s payroll with the option for the client to transition them into a permanent role at the end of the contract.
This option is ideal for longer-term IT projects where there is a possibility of extending the relationship beyond the initial temporary arrangement. If the client decides to hire the contractor permanently, a buyout fee applies, making it a flexible yet secure choice for both parties.
Uitzendcontract (Temporary Staffing)
The Uitzendcontract model offers flexibility for contractors, who remain employed by Corecom but can be placed across various clients as needed. This model adheres to NBBU or ABU agreements, providing fewer protections during the first 78 weeks.
While it’s often used for junior IT roles, it can also be a great fit for specialists, allowing businesses to access a wide range of talent on demand without long-term commitments.
Key Benefits of using Payroll Models
- DBA risk-free – The contractor is a legal employee, eliminating any DBA compliance risks.
- Stronger retention – Seamless transition to permanent staff, promoting lasting relationships.
- More control – Clients have full control over workload management, without the worry of compliance issues.
Things to consider when using Temporary Payroll Employment
When using this model, one important factor to consider is the potential for higher costs due to payroll taxes and benefits – making it more expensive compared to other employment arrangements. Businesses should carefully assess these additional costs when deciding whether this option is the best fit for them.
This option may also be less appealing to senior IT contractors. Many of these professionals prefer working as ZZP or independent experts, as it offers them more flexibility and control over their work.
Lastly, temporary payroll employment often requires more commitment from contractors. Unlike typical freelance arrangements, contractors in this setup gain employment rights, which can affect both their flexibility and the employer’s expectations.
Which Model is Right for You?
At Corecom Consulting, we’ve built a world-class compliance back office to offer both models, ensuring clients get the best IT talent without compliance headaches.
If you’re looking for expert IT contractors for short to medium-term projects, ZZP could be the ideal choice. This model gives you the flexibility to bring in skilled professionals for the exact time and work you need, helping your project succeed without the need for long-term commitments.
Alternatively, if you’re looking for long-term talent to join your team and increase team capacity with full compliance, Payroll Employment offers an ideal mix of security and control.
For expert guidance on hiring temporary IT in the Netherlands, feel free to reach out to Rick Hughes, Leroy Watson, or Marcela Galvez.
What I wanted from this partnership was to be able to take a step back and free me up to focus on my other responsibilities in addition to recruitment. Working with Corecom alone made everything so straight forward. I wasn’t having to chase up several agencies and there was no duplication of candidates. Tunstall was their no1 focus and I trusted them to deliver, which they did. There was noticeable improvements in CV-to-interview and interview-to-placement ratios which was a real pain point before changing the model on how we worked together. Working on a retained basis gave me confidence that extra effort and resource would be put in to filling the roles.