International Mobility Update
29 September 2009
1. Social Security Agreement between Belgium and India
The long-awaited social security agreement between Belgium and India has entered into force on 1 September 2009. The agreement, which was signed on 3 November 2006, is considered a landmark agreement as it was the first agreement of its kind ever negotiated by the Indian authorities.
Under the agreement, it is possible for employers to assign employees to the other contracting state while remaining subject to the legislation of the first contracting state, provided that the expected duration of the assignment to the other contracting state does not exceed 60 months (5 years).
2. Work permit exemption for executives employed by a Belgian based Headquarter
As of 29 May 2009 company Headquarters are no longer required to obtain work permits for any level of non-European Economic Area (EEA) citizen employed in a managerial position.
In order to enjoy this exemption, the employee concerned must be employed by the headquarters of a Belgian or foreign multinational company based in Belgium, he must acquire the position of a manager, he must be linked with an employment contract to a Belgian company and needs to earn no less than €59,460 (2009) gross salary on a yearly basis. The employer must be recognized as a head office as defined by law (Royal Decree of 9 June 1999).
3. Other new bi-lateral social security agreements and their date of entry into force
Apart from the Indian-Belgian social security agreement, the following new bi-lateral social security agreements concluded between Belgium and other countries have entered into force:
- June 1, 2009: social security agreement between Belgium and Macedonia
- July 1, 2009: social security agreement between Belgium and South-Korea
- August 1, 2009: social security agreement between Belgium and Uruguay
As usual, all said agreements provide for the possibility of assignment of employees from one to the other contracting state, with continuation of home country social security legislation. Also the preservation and export of pension rights built up in one of the contracting states is covered under the agreements.
4. Social security agreement between Belgium and Australia – simultaneous self-employed activities
The social security agreement between Belgium and Australia is in force since July 1, 2005. In its article 8.3, the agreement indicates the social security legislation of the state of residence as the applicable legislation in case self-employed activities are simultaneously being exercised on Belgian and Australian territory (so-called residence principle). In practice however, it appears that the Australian social security administration refuses to issue a certificate of coverage in application of article 8.3. In fact, article 8.3 is not even included and can thus not be indicated on the currently existing standard forms of the Belgian-Australian certificate of coverage. Should a situation of simultaneous self-employed activities in both countries occur, this would mean that social security contributions would be payable in each country concerned.
All depends now on the practical attitude which both the Belgian and Australian social security administration may want to take in this matter. Will they be willing to accept an official statement on the self-employed status from the other contracting state’s administration and thus still apply the residence principle in practice but without issuing a certificate of coverage? Our office is sorting this out with the competent Belgian and Australian social security authorities. We will keep you informed of any outcome in our International Mobility Update.
Contact
For further information, please do not hesitate to contact
Employment
Text size
Here is an update on mobility agreements by experts at Laga, including changes that affect workers from India and Australia, plus work permit exemption for executives employed by a Belgian based Headquarter,
Twitter
LinkedIn
Facebook
Google+
0
