Contractors operating in the Flemish region working with third country national subcontractors or with subcontractors employing third country nationals can rest assured for another year. A postponement until 1 January 2026 was decreed and limitation in scope to be expected. Further details below.
Contractors operating in the Flemish region working with third country national subcontractors or with subcontractors employing third country nationals received an unexpected additional Christmas gift. In June 2024, a decree was published imposing the obligation for contractors to request additional data and documents related to the employment of foreign workers and self-employed workers of their subcontractors. In case of failure to comply with this duty of care, a written declaration will no longer be sufficient to escape criminal sanctions in case a subcontractor illegally works (or illegally employs staff/works with self-employed individuals) in the Flemish Region. The tightened chain liability would come into force on 1 January 2025. Please see our earlier newsletter in this respect.
However, as the end of 2024 approached, it became clear that the online tool to upload documents would not be ready by the envisaged date. On top of that, based on a business analysis conducted in cooperation with the NSSO, a need for adaptation of the scope of the new rules became apparent. Indeed, the implementation of an extended chain liability (and consequently the obligation to obtain a copy of social security documents), irrespective of sector and situation, risks to be considered as a violation of the European free movement of services.
Consequently, on 20 December 2024, a draft decree was approved in which the entry into force of the Flemish chain liability is postponed until 1 January 2026. On top of that, in the note to the Flemish Government, it is announced that the scope may be limited to certain risk sectors. We will keep you updated in the upcoming year! Feel free to reach out to us if you have any questions in the meantime!
For a deeper discussion on the above, please reach out to your Vialto Partners point of contact, or alternatively:
Bart Elias
Partner
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