Navigating Belgium’s Enhanced Limosa Declaration: Simplifying Compliance for Posted Workers
July 15, 2024
By: Wim Cocquyt, Harry Goldstraw, Victoria Kate Barber, Flavia Noris
In April 2024, Belgium introduced a new functionality to the Posted Worker Notification (PWN), known as a Limosa declaration. It is now possible to add up to 20 places of employment in one Limosa declaration, where it was previously only possible to add five work locations. This reduces the administrative burden and costs for employers when sending employees temporarily to multiple worksites in Belgium.
Understanding the Limosa and the importance of compliance
The Limosa regulations require employers to declare any foreign workers who are temporarily posted to Belgium for work purposes. Compliance with the declaration ensures posted employees are treated equally to local Belgian employees regarding minimum wages, safety standards, working hours and conditions.
One of the main reasons this declaration is crucial is to prevent “social dumping” within the European Union. This occurs when employers attempt to bypass the labour standards (like minimum wages or workplace safety regulations) of the destination country by employing foreign workers under the lower standards of their home country.
Although introduced long before the EU Posted Worker Enforcement Directive 67/2014 came into effect (April 2007), the Limosa declaration is the tool through which Belgium has implemented the objectives of the directive, and it is currently considered one of the most advanced and straightforward instruments of PWN across Europe.
Compliance with Belgian law is important as there can be legal consequences for both the foreign home company that sends their employees to Belgium, as well as the host company in Belgium that receives the employees.
Penalties range from criminal fines of €4,800 to €48,000 EUR, administrative fines of €2,400 to €24,000 EUR per breach, and even imprisonment of the home company staff or agents, and self-employed posted workers, for up to three years for severe breaches. Penalties for not filing a PWN are determined on a case-by-case basis, at the discretion of the national labour authority.
Additionally, as the host company in Belgium is also liable if there are posted employees on their premises without a Limosa, there is an increased importance for the home company to ensure this is in order to avoid that workers are unable to enter work sites causing delays to the provision of the service.
There are also reputational risks associated with non-compliance. If a company has been audited, the Belgian authorities can inform the national press of any non-compliance of the company, putting the organisation’s name on the local or perhaps even global stage.
Exploring the new functionality
Although there are serious penalties for non-compliance, Belgium is often regarded as one of the most accommodating countries for posting workers. In addition to this new possibility to add up to 20 places of work in Belgium in one Limosa declaration, it is also possible to file a so-called simplified notification covering multiple trips across a longer period.
For example, if an employee is temporarily working in Belgium for one week every month of the year, and each month the worksite in Belgium changes, the home employer would only need to file one notification which would cover all trips for the employee at each different worksite in Belgium.
Country comparisons
In contrast to the Belgian Limosa declaration, many other countries operate under stricter interpretations of the posted worker rules from the EU. While these laws aim to protect domestic labour markets (of the destination countries), they can pose challenges for businesses operating across borders and require detailed policies and protocols to ensure compliance as the requirements vary between the different EU countries.
A direct comparison of the flexibility of the Limosa declaration can be made with France, where restrictions introduced in May 2024 mean an employer can only provide up to five worksites in a PWN, as the French authorities consider a PWN with more than five worksites not precise enough.
For business travellers travelling for a period of up to three weeks, there is no need to file a PWN in Belgium. However, in Poland, for example, this would be required for each business trip. Likewise, the amount of information and documents required when filing the PWN in Belgium is simpler for companies compared to countries such as Austria and Luxembourg with extensive information and documentation requirements.
In these aspects, the Limosa system in Belgium is quite straightforward compared to systems in most EU countries, which can prove advantageous for employers.
Looking ahead
The evolution of the Limosa declaration reflects that the EU is taking an active role in ensuring member states efficiently apply the rules and make the PWN process less burdensome for employers.
Changes in government portals for PWNs have been observed in many EU jurisdictions directly following recent infringement proceedings and an EU Commission report. With this increased attention, businesses must also embrace these changes effectively. As an employer it is important, now more than ever, to have strong but flexible policies in place to be able to adapt and remain compliant.
Due to the complexity of each European country implementing the PWN rules differently, there is a general interest, at both the EU and national levels, to simplify the process. Belgium is at the forefront by increasing the flexibility for employees to be posted to an increased number of worksites and to allow multiple trips under a single Limosa declaration.
This simplified process is also more cost-efficient for employers and reduces the administrative burden of sending employees to Belgium, which in turn can reduce non-compliance.
However, with this simpler process, businesses who send employees to Belgium must have robust systems and policies in place to ensure compliance as it also brings increased auditing and attention from the authorities to ensure full compliance.
Need to know more?
For further information on the varied requirements for PWNs or questions related to ensuring employees can work in Belgium or other EU countries, contact the Fragomen Consulting Europe team at [email protected].
This blog was published on 15 July 2024, and due to the circumstances, there are frequent changes. To keep up to date with all the latest updates on global immigration, please subscribe to our alerts and follow us on LinkedIn, X, Facebook and Instagram.