Can my child do unpaid chores for my business?

If someone works in your business, you must pay them. Even if it is your own child and even if it only happens occasionally. If you fail to pay them, you risk a fine.

With the continuing staff shortage, it is understandable that you sometimes need extra help in your business. But you may not let your child work for you without paying them. So if you decide to let your child work in your business occasionally, you must compensate them. The Netherlands Labour Inspectorate can check this (in Dutch).

Fine

If an inspector sees during a check that your child is doing unpaid work, they can impose a fine. Your child can also file a loonvordering (wage claim, in Dutch) with the court. You may then have to pay wages at a later date plus an additional amount as a fine.

Salary for your child

There are 3 ways to arrange a salary for your own child. You can employ your child, make your child co-owner of your business or, if your child is 15 or older, enter into a fictitious employment relationship. Parents often choose the latter option because it has tax advantages.

Fictitious employment

You can enter into a fictitious employment relationship if your child only works for your company because you are their parent. This arrangement has tax advantages, such as a simplified payroll taxes scheme (in Dutch).

Age

Is your child younger than 15? Then they may not enter into a fictitious employment relationship. Also pay attention to what kind of tasks your child does. There are rules for which activities  children under 18 are allowed to do. If your child is younger than 13, they may not work for your company at all.