Making contracts with a management BV: beware!

Management contracts are often made with the management BV (service company) of a private individual to prevent that a contract is qualified as an employment contract. After all, an employment contract can be made only with a private individual. A recent Supreme Court ruling shows that a court may still see through this trick and rule that an employment contract with the private individual was constituted.

In the case at hand, a home care organization had made a contract with the management BV company of Mr X One of the main reasons why the parties did not make an employment contract was that Mr X preferred not to join the pension scheme that all employees of the home care organization were required to join. Consequently, the pension insurer missed out on pension contributions, which is why it initiated legal action. The Supreme Court was not fooled by the company ‘front’ and ruled that an employment contract existed between the management BV representative, and that pension contributions were due.

Although this case revolved around a special situation, one should still think twice before making a contract with a management BV. Based on the text of the contract and the way in which it is performed, a court will assess whether the contract may still qualify as an employment contract with all implications (financial and otherwise) attached to it. This is all the more reason to closely review the management contract/contracts you have made.

Van Doorne can help you with this. Please contact Nicole Sjoer, Employment Practice, if you require our assistance.

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