Gezagsverhouding
Relationship of authority
A relationship of authority is the hierarchical relationship in which one party (usually the employer) may give instructions to the other party and supervises the performance of the work.
In Dutch employment law, the relationship of authority constitutes one of the three essential elements for the existence of an employment contract, alongside the performance of work and the payment of remuneration. It refers to the employer’s authority to issue binding instructions concerning the manner in which the work is to be carried out and to exercise supervision in that regard.
The existence of a relationship of authority is material because it determines whether an employment relationship arises within the meaning of the Dutch Civil Code or the Wages Tax Act. In the absence of such a relationship, an agreement may instead qualify as a contract for services, giving rise to different legal consequences in respect of protection against dismissal, social security, and tax treatment.
In practice, a relationship of authority is frequently inferred from the facts and circumstances of the case, including the degree of control exercised, the obligation to comply with instructions, and the extent to which the activities are integrated into the principal’s organisation.
“The court held that a relationship of authority existed, as the employee was required to comply with the employer’s instructions on rosters and working methods.”
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