All you need to know about Belgian payroll Presented by Kathy - PowerPoint PPT Presentation

All you need to know about Belgian payroll Presented by Kathy Soulsby

Agenda: 1. Running a payroll 2. Rights and Responsibilities 3. Absences

What is required to run a payroll

What is required of a company in order to run a payroll The company must be registered as a legal entity in Belgium • The company must be registered with the Tax Office and the Social • Security Offices If there is no registered legal entity, the company cannot be • registered with the tax and social security authorities and will be unable to fulfil the obligations resulting from the payroll process The company must have an Enterprise Number •

The Belgian tax system u The Governing Body is Federal Public Service Finance http://www.minfin.fgov.be/portail2/en/index.htm u Tax Returns can be submitted electronically via the Tax On Web system (only available in Dutch, French or German) u https://eservices.minfin.fgov.be/taxonweb/app/citizen/pub lic/taxbox/home.do

What is an Enterprise Number? u The format of an Enterprise Number is 10 digits, starting with a 0 u It is issued by the Crossroads Bank of Enterprises u This number is also the VAT number and should be quoted on all correspondence, invoices and documents u It is used to communicate electronically with the Belgian Authorities and means that companies are not required to fulfil the same administrative tasks for the different departments of the Belgian Government

Belgian Social Security The Governing Body is the Federal u Public Service http://www.socialsecurity.fgov.be/en/ The National Social Security Office u collects contributions and administers the scheme u http://www.rsz.fgov.be/en The employment office is the FPS u Employment, Labour & Social Dialogue http://www.employment.belgium.be u

Belgian Social Security - An Overview • Three types of Social Security in Belgium • Employed • Self-Employed • Civil Servants • Based on the Insurance Principle • Insures the following risks; • Unemployment (Excludes Self Employed Persons) • Old age and Survivors Pensions • Sickness & Disability • Work Accident & Occupational Diseases • Family Benefits • Holidays (For Blue Collar Workers)

Belgian Social Security - An Overview • Foreign employees working in Belgium are normally subject to Social Security and entitled to Benefits under the scheme • Usual rules apply to Foreign Workers – however they are exempt if • EU Citizen • Temporarily assigned to Belgium • Working in Belgium and Home Country (A1 - Home Country) • Non EEA Country covered by Reciprocal/Totalisation/Double Convention Agreement • The Limosa Declaration • For Foreign employees working temporarily or partially in Belgium • Filed Electronically (www.limosa.be) • Must be completed prior to starting work • Used to monitor foreign business presence and check they are compliant

Belgian Social Security - An Overview There are several administrative tasks required when an employee joins or • leaves an organisation Starters • Employer’s obligations when managing new starters include: • Employee and employment data needs to be gathered and registered at • least 5 days before the first day of employment. • This registration needs to be with the External Service for Health and Safety “IDEWE”; and each employee must be given a copy of the Work Regulations as approved by the Ministry of Employment (>50 employees only). Complete the DIMONA (IN) reporting where applicable (starter’s • declaration registration form)

Belgian Social Security - An Overview • Leavers Employer’s obligations when managing leavers include: • • Issue a final payslip including severance pay and vacation pay for the current and following year • Provide a vacation statement “'attestation de vacance” for the employee to submit to their new employer Calculate vacation pay, social security contribution and add to monthly • invoice Issue a statement of employment/earnings to date • Produce a C4 leavers document for unemployment benefit • • Report the departure of the employee to DIMONA (OUT)

Belgian Social Security - An Overview Blue Collar Workers • Perform mainly manual task • White Collar Workers • Perform intellectual tasks • From 1 January 2014 Legislation exists to harmonise the rights of Blue • & White Collar workers including; Notice periods • First day of sick leave •

Rights and Responsibilities

Employee Rights and Responsibilities ▶ Various rules on employee hours, including restrictions on night work ▶ Part time employees have the same as employment rights ▶ Fixed term workers cannot be treated less favourably ▶ Employers work's council sets disciplinary rules ▶ Processing of Employee Personal Data is regulated ▶ TUPE rules exist where any employee is transferred

Employer Rights and Responsibilities Disciplinary action ▶ Pay salary and Social Security ▶ Withhold employee social security and withholding taxes and ▶ make statutory payments within official deadline Respect for privacy and dignity of the worker ▶ Employee Representation ▶

The Works Council Represents the whole of the workforce ▶ Two separate channels - Works Council & Trade Unions ▶ Works council elected if more than 100 EES ▶ Separate body for Health & Safety (CPPT/CPBW) ▶ Elected if more than 50 EES ▶ In companies <100 EES the H & S assumes some of the Works ▶ Council rights

The Works Council - Numbers & Structure Required in Companies of >100 EES ▶ 50-100 EES = Health & Safety Committee (CPPT/CPBW) ▶ Comprised of elected employee and employer ▶ representatives Employer cannot have a majority ▶ Blue & White Collar representation should mirror workforce ▶ Chaired By ER representative, Secretary is an EE rep ▶ Meets once a month - pre meetings allowed ▶

The Works Council - Numbers & Structure Number of Employees Number of EE Representatives 101 - 500 6 501 - 1,000 8 1,001 - 2,000 10 ▶ Maximum number of EE Representatives is 25 ▶ 2 additional representatives, for each additional 1,000 EES up to 6,000 EES ▶ Above 6,000 = 1 EE rep per 1,000 EES ▶ Young workers and Senior Managers must be represented

The Works Council - Role ▶ To be informed and consulted about economic and employment issues ▶ Limited decision making powers (Pension Funds, Canteen, Social Clubs) ▶ Quarterly "state of the union" updates ▶ Annual "MI Updates" ( Turnover, Starters, Leavers, No of EES etc) ▶ Right to be consulted on changes affecting employment (Redundancies, Mergers etc) ▶ Responsible for choosing auditor ▶ Representatives elected every 4 years

Trade Unions - Role ▶ Negotiate new agreements and monitor adherence to those already in existence ▶ Deal with disputes between ER & ER (Individual or collective) ▶ In companies of <50 EES the trade union will assume Work Council role/functions ▶ Can be elected by the workforce or chosen by local union ▶ Has the right to inform EES about employment issues (hold meetings, distribute leaflets)

Trade Unions & Work Councils - Similarities ▶ Enjoy certain protections against dismissal ▶ Entitled to paid time off for training ▶ Paid for attending meetings/union/council business

Health and Safety of employees A Health & Safety committee should be set up in all companies of 50 or more ▶ employees (20 in mines/quarries & 10 in diamond industry) Comité pour la prévention et la protection au travail or (CPPT) in French ▶ Comité Preventie en Bescherming op het Werk(CPBW ) in Flemish ▶ Where there is no H & S committee, the Trade union assumes its role ▶ Where no union employer consults directly with EES ▶ Committee members also enjoy significant protection against dismissal ▶

Health and Safety Committee - Numbers & Structure No of EES No of H & S No of EES No of H & S members members <50 2 2,001-3,000 12 51-100 4 3,001-4,000 14 101-500 6 4,001-5,000 16 501-1,000 8 5,001-6,000 18 1,001-2,000 10 6,001-8,000 20 Above 8,000 EES = 22 Employee members •

Health and Safety Committee - Role The role of the Health & Safety Committee is, amongst other things, to oversee the following: All projects and measures which could have an impact on the well-being of ▶ employees, either directly or indirectly Plans for the introduction of new technologies, which could have a health and ▶ safety impact Company health and safety policies ▶ All measures intended to adapt working methods and conditions to the needs of ▶ the worker Adjustment measures for employees with disabilities ▶ The choice, purchase and maintenance of equipment used at work ▶

Absences

Absences in Belgium u Annual Leave (mentioned previously) u Public Holidays (mentioned previously) u Sickness u Maternity Leave u Paternity Leave u Adoption Leave u Time Credit