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Global employment briefing: Belgium, October 2017

  • Belgium
  • Employment law


Posted workers and company cars – recent developments in Belgium

Secondment of employees to Belgium: LIMOSA declaration of contact person

At the end of last year the rules that apply to foreign employers who send individuals to work in Belgium were amended to give effect to the EU Enforcement Directive (2014/67/EC). An important and practical change was the obligation to appoint a contact person in Belgium who would deal directly with the Belgian authorities. As of 1 October 2017 employers are now able to appoint the contact person by means of the LIMOSA declaration, which is a mandatory report made to Belgian Social Security Authorities in respect of any individual who is not subject to Belgian social security and who comes to work in Belgium on a temporary or part-time basis.

Cash for cars

In an attempt to reduce the large number of company cars contributing to traffic congestion, the Belgian government is proposing to introduce a new scheme enabling employees to exchange a company car for additional pay that will benefit from a more advantageous tax regime.

The government proposes that, if the new scheme is adopted, it will only be available where the company has been providing company cars to its employees for at least three years and the employee currently benefits from a company car. Participation will be voluntary for both employers and employees and the employer can apply additional conditions, such as waiting for the lease period of the current company car to end. The amount which may be awarded to the employee will be calculated on the basis of the value of the last company car.

The legislation required to implement the government’s proposed scheme is still to be drafted and will need to be approved by the Parliament. Consequently, the features of the scheme outlined above could yet change.