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A locum agreement is a special form of the contract for services under which a self-employed professional—often a general practitioner or specialist—temporarily takes over the duties of a colleague or practice owner. The core principle is that it must not be an employment contract: if it is, payroll taxes and dismissal rules still apply. That this can go wrong is evident from a ruling by the District Court of Central Netherlands (ECLI:NL:RBMNE:2023:6072). A carefully drafted agreement is therefore not a formality, but protection.
What is a observation agreement?
A locum agreement is a contract for services under which a self-employed professional temporarily takes over the work of another. This can last for a few days or cover a longer period. The agreement sets out the arrangements between the client (the practice owner or permanent professional) and the contractor (the locum): who does what, for what remuneration, and under what conditions.
The structure is widely used in healthcare — general practitioners, dentists, pharmacists, and medical specialists — but the principle applies to any self-employed professional temporarily replacing another.
Why a locum agreement is not an employment contract
The most important feature is that a locum agreement is not considered an employment contract . As a result, the typical aspects of an employment relationship do not apply: no obligation to withhold payroll taxes, no continued payment during illness, and no dismissal rules. If the agreement expires, you do not need to request permission from the UWV , and no severance pay is due.
Whether there is truly an assignment rather than an employment relationship depends not on the title of the document but on how the collaboration proceeds in practice. Characteristics of a genuine observation include:
- the observer is not scheduled by the client;
- there is no obligation regarding a minimum number of hours or shifts;
- the payment goes directly from the client to the observer, without an intermediary;
- The observer largely determines how the work is carried out and bears their own entrepreneurial risk.
The risk: a disguised employment contract
If those independent characteristics are lacking, a judge or the Tax and Customs Administration may still classify the relationship as an employment contract. The consequences are substantial: backdated assessment of payroll taxes, potential fines, and the subsequent application of dismissal law. In the case before the District Court of Central Netherlands (ECLI:NL:RBMNE:2023:6072), a substitute arrangement failed on this point.
Please note: a standard or model agreement from the Tax and Customs Administration is no guarantee. Such a model agreement does not cover every situation and only offers certainty if you also adhere to the conditions in practice. Moreover, the assessment of bogus self-employment is currently receiving a great deal of attention and enforcement is changing; therefore, have the current situation checked.
What should be included in a good observation agreement?
- Remuneration: rate, method and time of payment.
- Duration and termination: start and end date or the conditions for termination.
- Liability: who bears which risk, including professional liability.
- Confidentiality: handling of confidential information.
- Patient data: who is allowed to access which data and under what conditions — a sensitive issue in healthcare.
- Characteristics of independence: provisions that emphasize that it is not an employment relationship.
Frequently asked questions about the locum agreement
May I use a model agreement from the Tax and Customs Administration?
That is permitted, but it is not always sufficient. A model agreement only offers certainty if the actual collaboration meets the conditions exactly. If practice deviates, an employment relationship may still be assumed. An agreement tailored to your situation is safer.
Who is liable in the event of an error by the observer?
That depends on the terms of the agreement and the circumstances. In principle, a locum is personally responsible for their own professional practice and must be insured for this. Therefore, explicitly stipulate the apportionment of liability.
Is a locum allowed to view patient data?
Only to the extent necessary for the observation and within the applicable privacy and professional rules. Make clear agreements regarding this in the contract, so that the observer knows which data he may access and under what conditions.
Have a locum agreement drawn up or reviewed
Due to the legal nuances — and the risk of reclassification as employment — it is advisable to have a substitute employment agreement drafted by a legal expert. The legal experts at MKB Juristen are familiar with the requirements of your industry and ensure that the agreement aligns with current legal standards. Do you already have a draft? Then let us review. View our expertise in contract law or schedule a no-obligation intake.
