Overtime is a tricky problem (contributions, premiums, making up overtime). The time has come to review the regulation and the exceptions and mention an often little-known tax reduction to reduce the cost of overtime.
Overtime in Belgian law
In Belgium, the limits on working hours may be exceeded in some cases, but the period of work may never be more than 50 hours a week. The law defines 'overtime', which is very strictly regulated. In fact, overtime has to be made up in the form of time off in lieu, and gives rise to payment of a bonus of an amount at least 50% more than ordinary pay.
Two rules are unavoidable:
- Overtime must be made up within the current calendar quarter.
- Employees are not allowed to work more than 65 hours' overtime during a reference period.
+20%, 50% or 100%?
The statutory bonus is also defined in law. The rates applicable are as follows:
- 20% for overtime in the construction sector;
- 50% for overtime worked Monday to Saturday;
- 100% for overtime worked on Sundays or public holidays.
The scenario of night work
Any work carried out between 8pm and 6am is considered by law as night work. In principle, this night work is not authorised, except for certain professions such as the press, the hotel industry, the catering industry (including bakeries), pharmacies and cultural venues (cinema, theatre, shows). Workers working at night are entitled to a night-time bonus, the amount and terms of which are fixed by a collective work agreement.
The ceiling has been revised upwards (in some cases)
You may not be aware of this, but there is a reduction on the first 130 hours of overtime worked in most sectors. For most sectors, including the construction and comparable sectors, the limit of 130 hours has however been revised upwards, i.e. 180 hours, but on one condition: on a work site, the system for recording attendance must be effectively used. Some sectors go even further: catering (Horeca) benefits, for example, from a capital of 360 overtime hours.
What is the advantage? For 20 overtime hours, the discount is around 300 euros. The tax reduction brings this cost down to just under 200 euros. Automatically, costs fall and taxation is reduced. Do the maths. The employer is saving nearly 35% in salary costs here. For their part, employees receive a bonus which is 50% higher. In other words, bosses and employees have everything to gain.
Green light for new law for companies and associations
From 1 May 2019, new legislative rules will apply for Belgian companies and associations.
On 28 February, the Belgian House of Representatives adopted a bill for a new Code on Companies & Associations. The aim? To modernise the current legal framework, align more closely with reality and help make Belgian companies more competitive in relation to their European colleagues.
The aim? To modernise the current legal framework, align more closely with reality and help make Belgian companies more competitive in relation to their European colleagues. The new legislation will enter into force from 1 May 2019 for new companies and associations and 1 January 2020 for all existing companies and associations (unless these opt in before that date). Mass conversion is likely to occur between 2020 and 2023. All existing companies and associations must use this period to review their articles of association and legal status.
The new rules would normally have entered into force on 1 January, but the bill's adoption was delayed by the government shenanigans in recent months (Prime Minister Michel submitted his government's resignation on 18 December 2018 after a Green-Red vote of no confidence, ed.). Although the new legislation has been approved by the House, it hasn't yet been published in the Belgian Official Gazette currently. Also, the implementing decrees will take a little longer. Nevertheless, the new rules will apply as of 1 May this year.
How to prevent a stroke with the help of your smartphone
Fibricheck is a medical application that anticipates strokes using just a smartphone. This kind of innovation focused on human well-being is at the heart of BNP Paribas Fortis’s sustainability strategy.
Digitalisation is affecting even medicine. Convinced that the digital world and the traditional medical world must work together, Fibricheck has developed an application to anticipate strokes. This ethos makes human interests a core concern.
By supporting this Belgian company, BNP Paribas Fortis wants to do its bit to build a more sustainable world and help new and inspiring ideas to emerge.
A diagnosis using your smartphone
Smartphones are becoming increasingly important in our everyday lives. We use them to communicate, cook and read... so why not for medical diagnosis? With Fibricheck, the user can now check their heartbeat, to anticipate the risks of a stroke. The Fibricheck application focuses on the most common kind of heart arrhythmia: atrial fibrillation, which is responsible for 20% of strokes.
How does it work?
Above all, it is important to know that Fibricheck is available only by medical prescription. Once you have installed it, you just need to put your finger on your smartphone camera for 60 seconds, for all the required data to be recorded. The algorithms will do the rest, to provide an instant result. If any anomalies are detected, the results will be analysed by a Fibricheck doctor and made available to your doctor. Technology is used to serve human interests.
An irregular heartbeat is not always easy to detect. The advantage of Fibricheck is that it does not need to be used in a specific place (e.g. at the doctor's surgery), or during a set period. It allows multiple measurements to be taken, to provide an overview of your heartbeat.
Checks in companies
The health of your employees is crucial. Heart arrhythmias do not always have clear, visible symptoms. Consequently, detection plays a crucial role in preventing the greatest risks. This is why Fibricheck is offering to check your employees.
For more information, consult the Fibricheck website.
Challenges when recruiting internationally
Recruiting a member of staff for relocation to a foreign subsidiary requires some careful thinking. We have compiled the questions that are most frequently asked when people are faced with this human-resources quandary.
International recruitment involves recruiting people in their company's country of origin and relocating them abroad to work in a foreign subsidiary. In a globalised world, this has become common practice. However, when setting up a Belgian company abroad you will face a series of legal obstacles, as soon as your employees cross the border out of Belgium. These include employment laws, residence permits, taxation and social security. These questions will make things clearer up for you:
Should I recruit before developing my strategy?
No. Before starting the recruitment process, the first thing that a company must do is clearly define what it wants to achieve in the country where the subsidiary will be set up. It must take cultural differences between the countries into account. If the company usually recruits locally to be on the same wavelength as its target customer, when recruiting internally candidates should be adaptable and self-reliant, but above all they should be fluent in the country's language (in English, at the very least).
Can my employee work in this country?
If the free movement of workers applies within the EEA (European Economic Area) and in Switzerland, you do not need any special permit apart from your Belgian identity card. You must have a work permit as soon as you cross the border out of this area. The paperwork to apply for this can be extensive and even complicated (particularly in the United States). It is essential you have a lawyer who specialises in immigration.
Do I need a centre of operations in the country?
If you want to employ staff in a different country, you should have a local entity. Depending on the country in question, a small entity (sometimes no more than a letterbox) can be enough.
Where should social-security contributions be paid?
In the EEA and countries that have a bilateral social security treaty with Belgium, the social security system in the country of work will apply. In situations involving simultaneous employment, the social security system in the country of residence applies. As a rule, an employee cannot be subjected to different systems. Outside the EEA, you should operate on a case-by-case basis (legal and tax advice is essential in these situations).
What about salary and working conditions?
Employees can only work in an export market if they have an employment contract adapted to the salary and working conditions of the country in question. As a general rule: the mandatory legal provisions in the country of work will take precedence over the ones that appear in your Belgian employment contract.
Where should taxes be paid?
Double taxation is not a very appealing option for employees who are being relocated to work abroad. To avoid this, Belgium has signed treaties with a large number of countries specifying the country responsible for taxing the salaries that you pay. As a general rule, workers are taxed in their country of work, except in cumulative cases (the 183-day rule), where the national law of the country responsible for taxing the salary will apply.
Can I recruit internationally from Belgium?
Yes, you can. For example, in the Brussels-Capital Region, Actiris has an International department, which selects candidates with an interest in working abroad. This body is a member of EURES, a network of more than 1,000 employment counsellors (EEA and Switzerland). If your employees do not want to be relocated abroad, its counsellors can also place your job offers on the EURES portal.
Should I go it alone?
Certainly not. The steps that you need to take before relocating one of your workers abroad or recruiting internationally are too complex for you to tackle without any advice; only a specialist firm will be able to help you take these different steps (residence permits, work permits, social-security payments, taxation).
Could your intuition help you make better decisions?
All of us have heard that little voice in our ear quietly persuading us of a new idea or a different way to tackle a challenge at work. But acting on that voice is another thing altogether. And yet...
Marcel Schwantes, an expert in workplace culture based on "servant leadership*", is well placed to recognise his intuition speaking. This small voice inside us has a tendency to bring out, from the deepest recesses of our beings, feelings that can be buried under rational layers of logical thinking.
People who are emotionally intelligent are more readily able to listen to this internal compass in order to keep themselves on the right track. But not everybody has this capacity.
How can we recognise the voice of our own intuition?
Here is some practical advice:
- If the voice signals a danger, it is undoubtedly your intuition speaking.
- Intuition speaks to you in a way you cannot ignore.
- First of all, we tell ourselves the voice is wrong.
- It gives us a message that is not particularly comfortable.
- We do not really want to act on its advice, or we tend to put off doing so.
- It seems counterintuitive!
- We allow ourselves to put it out of our minds...
Intuition and integrity – a perfect partnership
The reason why many of us still disregard this voice is that it can sometimes be unsettling. It pricks our consciousness and challenges our convictions, habits and belief systems. Yet it can hide precious inner resources just waiting to be revealed.
But to be able to utilise them, we must demonstrate integrity. When activated by the necessary bravery, this partnership between integrity and intuition can become a superpower that allows us to handle tricky workplace situations – or even run a company!
*Editor's note: Liberated leadership, as opposed to authoritarian leadership.