The "flexi-job employee" in the horeca sector

At the end of November, a law on various matters relating to social provisions was published in the Belgian Official Journal. The fundamental objective of this law is to combat different forms of social fraud. One of the biggest innovations introduced by the regulator is the status of the "flexi-job employee".

This new status is intended to make it possible for one to advantageously earn additional income in the hotel-restaurant-café (horeca) sector. To achieve this objective, the law provides for an exemption from taxes and a special social security contribution. In this way the regulator is seeking to discourage undeclared employment and give a fresh boost to the horeca sector’s viability. The same law makes overtime hours in this sector substantially less expensive.

Below we briefly review the characteristics of this new status.

1. Minimum 4/5th employment for a different employer

A flexi-job is only possible when the employee was already employed by another employer at least 4/5ths time in the third quarter preceding the quarter in which the employment with a flexi-job takes place. It is thus essential that social security contributions be paid in a primary job.

In addition, the flexi-job may not coincide with a period covered by a termination indemnity or a dismissal compensation at the expense of the employer with whom he is performing the flexi-job. Finally, the flexi-job employee may not find himself in an advance notice period. 

2. Flexi-salary and flexi-vacation allowance

For a flexi-job, the employer must pay a "flexi-salary" that is established in the framework agreement. The flexi-salary amounts to a minimum of 8.82 EUR gross per hour. Moreover, a “flexi-vacation allowance” is also owed, i.e. 7.67% of the flexi-salary. The basic minimum wage thus amounts to a total of 9.50 EUR. These are net amounts on which no social security contributions or withholding tax on income derived from employment activity are owed. The employer only has to pay a special 25% contribution - which is deductible as operating costs.

3. Agreements

Prior to the performance of the first flexi-job employment contract, the employer and the employee have to conclude a framework agreement with a number of obligatory mentions, such as e.g. a brief description of the work to be performed. This contract can be concluded for an unlimited or for a limited period and must be kept at the place of employment of the flexi-job employee. This obligation is intended to facilitate possible controls by the social inspectorate.

Along with the framework agreement, per employment period a specific flexi-job employment contract must also be concluded for a limited term or for a clearly described work.  The Employment Contract Act of 3 July 1978 applies to this contract, unless certain things are stipulated to the contrary in the law. For example, the law expressly provides that the employment contract, in contrast to the framework agreement, may be either oral or in writing.

4. Dimona

Dimona is the required electronic report to the National Social Security Office of each commencement of employment or departure from service of an employee. If the period of the flexi-job employment contract extends over several quarters, a Dimona declaration must be made each quarter. With an oral flexi-job employment contract, a daily Dimona declaration has to be done.

These new regulations already entered into force on December 1st.

For more information on this topic, you can consult Sébastien van Damme (author) and Sara Cockx (author and department head).