Indexation of salary levels for work permits
In application of article 131 of the law of 3 July 1978 on employment contracts and article 9 of the Royal Decree of 9 June 1999 enforcing the law of 30 April 1999 on the employment of foreign nationals (as modified by the Royal Decree of 6 February 2003), salary levels taken into account for issuing authorisations for the employment of foreign nationals and work permits for highly qualified foreign employees or executives who have a management position in Belgium, are linked to the index of contractual salaries. Such levels are therefore reviewed each year.
From 1 January 2011, authorisations to employ foreigners and work permits for foreign nationals are issued for:
• highly qualified foreign employees, whose employment in Belgium is, in principle, limited to four years (but can be extended for another 4 years), even if suitable labour can be found in Europe to fill the vacancy, as long as their gross salary exceeds € 36,604 per year;
• foreign executives who hold a management position, as long as their gross salary exceeds € 61,071 per year.
Extension of EU Regulation 883/2004 to third country nationals
EU Regulation 1231/2010 has entered into force on January 1st 2011 and extends the EU rules on the coordination of social security systems to nationals of third countries, i.e. non-EU nationals. The Regulation ensures that third-country nationals who are legally resident in the EU and who are working in a cross-border situation, are subject to the same rules on the coordination of social security systems as European citizens, i.e. the provisions of EU-Regulation 883/2004 and EU-Regulation 987/2009. Please note though that both Denmark (as also under Regulation 1408/71) and the UK have decided not to adopt Regulation 1231/2010. For the UK, this means that previous Regulation 1408/71 will continue to apply to multiple employment situations where third country nationals are involved. For Denmark, either bilateral treaties (if any) or the national legislation of the countries involved will govern multiple employment situations with third country nationals.
Comparative Immigration Study 2010-2011
The comparative Immigration Study 2010-2011, which is published by our office on a bi-annual basis, is the result of co-operation between Laga and other foreign law and consultancy firms. It aims to provide an objective overview of the immigration processes with which compliance must be ensured for the employment of third-country highly-skilled workers in:
• The UK
• Germany
• The Netherlands
• France
• Spain
• Italy
• Belgium.
In the first part of the study, we provide a brief overview of the immigration processes in the above countries. In the second part, we compare the necessary requirements. The comparison demonstrates that the Belgian migration (work permit) process is by far the fastest and easiest to comply with. Indeed, if we consider both the time it takes to process a work permit application in Belgium (about 2 weeks) and the required conditions for obtaining a work permit for a highly skilled employee (earning at least EUR 36.604 gross on a yearly basis in 2011), we can safely conclude that as before and compared to our neighbouring countries, it has become easier for third country nationals to be employed in Belgium.
Secondment: optional or compulsory nature?
Further to the introduction of EU Regulation 883/2004, a discussion raised as to whether the principle of secondment is to be considered as being of a compulsory nature.
Optional would mean that if an employer sends an employee on a temporary assignment to another EEA country or Switzerland and provided all secondment conditions are fulfilled, the employer and the employee agree not to make use of the rules of secondment (i.e. the employee remains subject to the social security legislation of the sending State) but yet to to pay social security contributions in the receiving State (based on the general principle that the competent State for social security is the State where the activities are being exercised).
Compulsory would mean that the choice for application of the social security scheme of the receiving state would no longer be possible in case of secondment and that home country social security would compulsory continue to apply.
In the past, the Belgian social security authorities have always honored the optional nature of the secondment principle.
Very recently however, they have decided to change their position. They now consider the secondment principle for secondments within Europe for less than 24 months as being of a compulsory nature, meaning that home country social security compulsory continues to apply. This modified position does not apply for assignments of more than 2 years, neither for assignments within a bi-lateral treaty context.
Changes in the Hungarian Social Security Administration rules as of 2011
Since January 1st 2011, the social security procedural rules on registering, filing, contribution payment and reporting obligations for foreign employers and employees liable to Hungarian social security charges (e.g. EU nationals without A1 certificate issued in another EU member state) have changed.
For example, the foreign employer is now able to register directly with the social security authorities and act directly to comply with the social security obligations. However, it also remains possible for the foreign employee of the company to act on behalf of the foreign employer with respect to social security obligations (as under the previous applicable rules). Furthermore, from January 1st 2011 onwards it is possible to settle the payment of all contributions (pension, social security, etc.) in one payment.
