Originally published February 2010
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 27 December 2006 as amended by Program Act of 30
December 2009 - Early retirement
With effect from 1 April 2010 employer contributions to early
retirement indemnities will no longer be calculated as a lump sum
amount, but rather as a percentage of the gross allowance paid in
addition to the social benefit. The measure aims at increasing the
premium and consequently the costs for employers in letting
employees benefit from early retirement before the age of 58, as
early retirement is often used in cases of collective dismissal
with employees retiring, under certain conditions, as early as 52
or 50.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
