Portacabin-arrest
Portacabin Judgment
The Portacabin judgment is a 1997 Supreme Court decision that clarifies the criteria for the existence of an employment contract, in particular the relationship of authority.
The Portacabin judgment (HR 14 November 1997, NJ 1998/149) concerns a case in which the central issue was whether a worker performing duties in a portacabin had entered into a contract of employment with the principal. The Supreme Court held that a contract of employment requires the employee to undertake to perform work in the service of the employer in return for remuneration for a specified period, with the relationship of authority being decisive.
This judgment remains relevant as it refined the criteria for classifying employment relationships and continues to be widely applied in cases concerning bogus self-employment. In practice, it assists counsel and courts in determining whether a relationship constitutes a contract of employment or a contract for services.
The decision emphasises that the factual circumstances and the degree of control exercised carry greater weight than the contractual label.
“In the Portacabin judgment, the Hoge Raad held that the relationship of authority was decisive for the existence of a contract of employment.”
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