Key changes to the Belgian Social Penal Code as from 1 July 2024

The law amending social criminal law and various labour law provisions was published in the Belgian Official Gazette on 21 June 2024 (Dutch | French). The law introduces significant amendments to the Belgian Social Penal Code and came into force on 1 July 2024, although certain provisions will apply progressively. Employers may wish to review their internal compliance in light of the changes to ensure that they are able to provide the required documents and have an action plan ready in the event of a social inspection.

This alert summarizes the key adjustments.

Amendments to book 1 of the Social Penal Code

Increase in social penalties

The amounts of the administrative and criminal fines for level 3 sanctions have been doubled and the maximum amounts of the administrative and criminal fines for level 4 sanctions have also been increased, as shown in the following table:

The amounts remain subject to surcharges (the multiplication coefficient is currently eight).

The law modifies the time limit for repeat crimes in the event of criminal or administrative prosecution, increasing the period from one to three years. It also stipulates that the penalty may be doubled only for criminal fines, and no longer for imprisonment.

The law anticipates the repeal of provisions permitting the conversion of prison sentences into fines for legal entities, as the future reform of the Penal Code introduces a system of penalties directly applicable to legal entities (to come into force when the new Penal Code comes into effect in April 2026).

Exclusion from the right to participate in public contracts or concessions

The characteristics of this new penalty are as follows:

• It may be imposed in the event of criminal prosecution and not in the event of administrative prosecution;
• It is optional for the judge to pronounce and not an obligation;
• It is an accessory penalty (i.e., to be imposed in addition to other penalties);
• It will only be possible in the case of convictions for offences punishable by level 3 or 4 sanctions; and
• The exclusion may apply for three to five years, as determined by the judge.

Introduction of the concept of aggravating factors in the commission of certain offences

Two actions will be considered as aggravating factors:

• “Knowingly and intentionally" committing an offence punishable by a level 4 sanction; and
• Physical or psychological violence or threats towards a social inspector.

Amendments to book 2 of the Social Penal Code

The modifications broadly involve changes to the level of punishment for offences, creating new offences, and removing others. For example:

• The criminal and administrative penalties related to violations in connection with the general employee register, special employee register, attendance register, and working time arrangement register were previously level 4 penalties imposed collectively on all violations. The offences have been separated, and are subject to penalties at various levels ranging from 1 to 4;
• The level of penalties is increased to level 3 for offences relating to the payment of remuneration or other benefits in kind;
• The offence of working illegally if certain conditions are met is raised from level 1 to level 3; and

Nonrefundable paid social contributions

Contributions paid to the National Social Security Office (NSSO) in the context of a fraudulent submission will not be refunded to the convicted party and will remain with the NSSO.

Where the incorrect submission results from an error by the company, it should be possible to obtain a refund but this would need to be negotiated and agreed with the NSSO.