International Employment Update - New Legislation (Belgium)


Program Act of 23 December 2009 and Royal Decree of 10 January 2010 - Company cars If an employee uses a company car provided to him by his employer, for private purposes as well as his job, the employer has to declare a taxable benefit in kind to the authorities. The calculation method of the taxable benefit will now be linked to the CO2 emissions of the car rather than to its power. Moreover, corporate tax deduction of company car costs is subject to a progressive rate varying from 60% to 120% depending upon the level of CO2 emissions. Program Act of 30 December 2009 – "Crisis premiums" Blue-collar workers of companies that are subject to the Act for Collective Labour Agreements and who are dismissed during the period from 1 January until 30 June 2010, are entitled to fixed compensation called a "crisis premium". This compensation amounts to EUR 1,666.00 and is paid by the employer but reimbursed by the Unemployment Office. However, the employer will not be reimbursed unless it has provided notification of the termination of the employment contract by registered mail. The termination must take effect 3 days after the notification. This clearly deviates from the normal rule where notification by registered letter is only mandatory when the employment agreement is terminated with notice but not when it is terminated without notice. Act of...

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