Liability of Directors of Belgian Companies to the Social Security in a European Context

The fourth subparagraph of Article 3(1) of Royal Decree No 38, such as interpreted by the Constitutional Court, provides that any person designated as director of a company liable to Belgian tax, which does not manage the company from Belgium,...

Major EU-level Social Security Changes

By Sophie Maes of Claeys & Engels (the Belgium member of Ius Laboris) On June 28, 2012 two changes to European Union rules on social security came into force and will have significant implications for national legal regimes. One specifically...

Non-compete Agreement Concluded After the Severance Notification But Before the Effective End of the Employment Contract: Indemnity Exempt from Social Security Contributions

It was generally admitted that a non-compete indemnity was exempt from social security contributions only if, among other things, the non-compete agreement was concluded after the effective end of the employment contract. The Supreme Court nuances this principle in a...

Seniority Premium: The Tax Authorities Tune to the NOSS

In its circular of 23 May 2011, the Belgian tax authorities tuned their position with regard to seniority premiums following the recent clarification issued by the National Office of Social Security (NOSS). For the seniority premium to be exempted from...

Work Stability Indemnity: Not Submitted to Social Security Contributions

Certain collective bargaining agreements compel the employer to follow a specific procedure when dismissing an employee. In general, an employer's failure to respect such procedure entitles the employee to a so-called work stability (or security) indemnity. In accordance with social...

Social Security Agreement Between Belgium and Quebec Enters into Force

For employment outside of Europe, it must always be verified if Belgium has entered into a social security agreement with the country concerned. The basic principle in most such agreements is that the employee is subject to the social security...

Meal Vouchers in Electronic Form: Soon a Reality!

In the Belgian Gazette of 23 November 2010 two Royal Decrees of 12 October 2010 regulating the introduction of electronic meal vouchers were published. The first Royal Decree lays down the conditions and procedure for recognizing the "publishers" of meal...

Instructions from the NSSO for Employers: Table of the Accepted Flat Rates for the Reimbursement of Costs

The instructions for employers that the National Social Security Office (NSSO) has just published for the third quarter of 2010 contain an interesting novelty: the NSSO has inserted a table containing the flat rates which it accepts, under certain conditions,...

New Rules on Paying Social Security Dues in Cross-Border Employment

The new Regulation No. 883/2004 on coordination of social security systems entered into force on 1 May 2010 and superseded the previous one - Regulation No. 1408/71, which has governed this matter for nearly 40 years. The new Regulation changes...

New European Social Security Regulations as of 1 May 2010

On 30 October 2009, the implementing regulation of Regulation (EC) No. 883/2004, that will replace Regulation (EEC) No. 1408/71, was published in the Official Journal of the European Union. Regulation (EC) No. 883/2004 provides a series of rules to determine...

Severance Pay in the Event of Part-Time Parental Leave

An employee with an employment contract that is dismissed during the period of part-time parental leave is entitled to a severance pay calculated on the basis of the full-time employment. This is what the European Court of Justice judged in...

New European Social Security Regulations in Principle as from 1 May 2010

In principle every country has its own social security regime and its own social security rules. To promote internal mobility Regulation (EEC) 1408/71 was introduced. This Regulation doesn't provide a unified European social security regime but rather a series of...