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Belgian Labour Law New Measures on Labour Law

Belgian Labour Law New Measures on Labour Law. Brussels, 8th of March 2018. Content. Employers ’ social contributions Benefits in kind & Cash for Car measure Profit-sharing bonus Posting of employees Notice periods. Employer’s Social Contributions.

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Belgian Labour Law New Measures on Labour Law

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  1. Belgian Labour LawNew Measures on Labour Law Brussels, 8th of March 2018

  2. Content • Employers’ social contributions • Benefits in kind & Cash for Car measure • Profit-sharing bonus • Posting of employees • Notice periods

  3. Employer’s Social Contributions • Tax shift  makes Belgium more competitive • 2016: • Reduction of the employer’s social contributions rate • Modification on the structural reduction • Review of the first hiringsmeasure • 2018: • New reduction of the employer’s social contributions rate • New change of the structural reduction • 2019: Review of the structural reduction

  4. Employer’s Social Contributions • 2018: decrease of the social contributions rate • Almost all the employers (except non profit makingsector …) • Basic rate: 30%  25% + sectorialspecific contributions + legalholidaypay contributions for blue-collarworkers

  5. Employer’s Social Contributions • 2018: review of the structural reduction • Removal of the lump sum of €438 • Removal of the extra reduction for the high wages • Increase of the reduction for wagesunder €2,950

  6. Employer’s Social Contributions First hiringsmeasure:  Life time exemption on the basic employer’s social contribution ends on the 31 December 2020

  7. Benefits in Kind • IT tools for professional & private use • Social contributions & incometax • National Social Security Office and Tax Administration haddifferent opinions • The value of thosebenefits has been reviewedsince the 1 January 2018 • Have to bedisplayed on the payslips

  8. Benefits in Kind

  9. Cash for Car • Project – Not yetadopted • Enableemployees to return theircompany car for a mobilityallowance • Employer’sdecision to offerthispossibility • Employee has to apply for it(by written) • Conditions: • Employer: fleet for 36 months(except employer starter) • Employee: car for 3 months & 12 monthswithin the last 36 months

  10. Cash for Car • How much? 20% of 6/7 of the car value + 20% if fuel card • Social treatment No remuneration Employer: no ordinary social contributions but a solidarity contribution Employee: no social contribution

  11. Cash for Car • Fiscal treatment Taxable advantage Incometaxis applicable • 4% of 6/7 of the value of the car (taxable amount) • The amount of the allowanceexceeding the taxable advantageisexempted

  12. Cash for Car Example Company car (catalogue value of €37,500, CO2 emissions of 115 g/km, diesel engine, first registration on 1 January 2016) : - Mobility allowance: €642.86 per month - Employer’s social contributions: €45.27 per month - income tax: €57.32 per month - Net for the employee: €585.54 per month - Cost for the employer: €688.13 per month (€642.86 + €45.27)

  13. Profit-Sharing Bonus • Scheme for participation in company profits reviewed • Possibility to grant a bonus based on company’s distribuable profits • 1 January 2018

  14. Profit-Sharing Bonus • Whatkind of bonus? - Identical (eachemployeegets the sameamount) - By category of employees - No individualization - No replacement of an existingremuneration • Whocan use this bonus scheme? - Employer: subject to incometax or non-residenttax - Employee: underemploymentrelationship (subordination)

  15. Profit-Sharing Bonus • How much? Max. 30% of the total payroll (gross basis) • How isit set up? - Employer’sdecision - Not recurrent - Identical bonus for eachemployee : G.A. decision - Bonus by category: specificprocedure (ex.:collective labour agreement)

  16. Profit-Sharing Bonus • Social treatment - Employer: no social contributions - Employee: 13.07% • Taxtreatment - Employer: non-deductibleexpense for corporatetax (29% in 2018) - Employee: 7%

  17. Posting of Employees • European Directive (2014/67/EC) • ImplementationintoBelgianlaw • Act of 11 December 2016 • Royal Decree of 14 September 2017

  18. Posting of Employees • Short assignment in Belgium (24 months) • MandatoryBelgian labour law provisions are applicable • Employeeremains in the social security system of the country where he isemployed • Certificate of coverage (A1 form) • Limosadeclaration

  19. Posting of Employees • Obligation for a foreign employer to appoint a liaison person (physicalperson) • No obligation to be a Belgianresident • The employer, an employee, anyone… • Acts as a contact personwith the Belgianauthorities • Holds the social & labour documents

  20. Posting of Employees • Appointment of liaison personthrough the Limosadeclaration • Person of liaison’sdetails & coordinates • Hiscapacity • Nature of the services carried out in Belgium • Temporarywork: accreditationnumber • Construction sector: comparable benefits in their home country as in Belgium • Etc.

  21. Notice Periods • 01/01/2014: • harmonization of notice periods • trial periodremoved • 01/01/2018: new notice periods

  22. New Notice Periods

  23. Contact Jinbao ZHANG International Social Advisor International@groups.be + 32 2 507 18 80 www.groups.be

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