Private Use of a Mobile Phone - Still No Flat-Rate Assessment
The benefit a worker derives from his/her private use of a company phone constitutes a remuneration benefit and is subject to social security (NOSS) contributions and tax.
In practice, the question which arises is how can a monetary value be assigned to this benefit?
Continue Reading...Seniority Bonus: The Tax Administration Follows the NSSO
The tax administration has changed its position on the seniority bonus (Circular of 25 February 2010) having been "inspired" by the instructions of the NSSO (National Social Security Office) (see our Newsflash (pdf) of 12 March 2009). The changes concern the following elements.
The alternative calculation method to determine the maximum amount of the seniority bonus exempted from social security contributions, as provided by the NSSO, is now also accepted by the tax administration. This means that the seniority premiums awarded from 1 January 2009, are also considered as exempted social advantages, when they are calculated on the average gross amount of a monthly salary in the company.
Continue Reading...Interruption Benefits - Eligibility Conditions Modified
In the Belgian Official Gazette of this 1 March, a Royal Decree was published that modifies the conditions that must be met in order to receive interruption benefits in case of time credit.
A first modification concerns the employees who suspend their work entirely or who switch to half-time employment in the framework of the general time credit regime. In order to be entitled to interruption benefits, these employees must from now on have a seniority of at least two years with their employer and this at the moment they notify in writing their intention to take time credit.
Continue Reading...Dismissed Blue-Collar Workers Are Entitled to a Crisis Premium
The Act on diverse provisions of 30 December 2009 stipulates that a crisis premium is due to blue-collar workers who are dismissed between 1 January and 30 June 2010 inclusive.
This premium amounts to 1.666 EUR and the cost is in principle divided between the National Employment Service (1.111 EUR) and the employer (555 EUR). This arrangement is expected to be confirmed in a Decree implementing the law.
When Does a Continuous Fault Become a Serious Cause Justifying Dismissal?
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 which social security regime is applicable in the event of cross-border employment. The basic principle is that a worker is subject to the social security regime of one Member State, namely the country of employment. Secondment and simultaneous employment are two exceptions to the rule. For an overview of the most important changes, we refer to our newsletter: 'Expats: the summer of 2009' (pdf).
Continue Reading...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 a decision dated 22 October 2009. The Court was responding to a prejudicial question posed by the Supreme Court.
Continue Reading...Sanctions Against Employers of Illegally Staying Third Country Nationals and the Joint and Several Liability of the Principal in a Subcontracting Situation
On 30 June 2009, Directive 2009/52/EC of the European Parliament and of the Council of 18 June 2009 concerning "sanctions and measures against employers of illegally staying third-country nationals" (the so-called "Sanction Directive") was publicized.
The Directive sets some minimum rules for actions and sanctions against employers of illegal immigrants in order to counter, in general, illegal immigration within the Member States.
The European Blue Card: Facilitating the Inward Flow of Highly Qualified Individuals
On 18 June 2009, the Council Directive 2009/50/EC of 25 May 2009 facilitating conditions of entry and residence in the EU of third-county citizens for the purpose of highly qualified employment was publicized.
This Directive introduces the European Blue Card, which is a residence and employment card for higher educated employees of third countries, and which can be seen as the equivalent of the American "green card." By doing so, Europe hopes to attract higher educated people from third countries, by installing a fast track procedure for residency and employment and by guaranteeing some social and economic rights.