TopicsSocial inspections and criminal law Business law and corporate governance
- 02 Sep 2013
In the Belgian Official Gazette of 28 August 2013, several implementing decrees were published which introduce the joint and several liability for the payment of remuneration in several industries.
With the Programme Act of 29 March 2012, the legislator introduced the joint and several liability of the principal or the (sub) contractor when it is established that the (sub) contractors, seriously failed to comply with their obligations regarding the remuneration payment of their staff. This Act amended the Remuneration Protection Act.
The activities which this joint and several liability would apply to, still had to be determined by Royal Decree. The Government has now determined the following activities: security and/or surveillance, construction (including activities which are considered to be work to real property), agriculture and horticulture, cleaning and meat processing.
Moreover, in the industries of agriculture and horticulture, cleaning and meat processing, conditions were determined under which parties may end the service level agreement with immediate effect in response to a notification of the social inspectorate that leads to the joint and several liability.
Finally, the Royal Decrees determine more specifically the extent of the joint and several liability which rests on the principal or the (sub) contractor.
> Action point
Companies active in the abovementioned industries should screen their service level agreements and amend them to counter such a notification of the social inspectorate which results in the joint and several liability.