The nature of working relationships Gerrit Van de Mosselaer, Policy advisor – legal counsel Social Inspection European Economic and Social Committee 31 March 2016

Content The legal framework in Belgium Characteristics of authority in Belgium Technique for determining the existence/absence of authority Difficulties encountered Proposal

The legal framework in Belgium (1) General principle of freedom of choice - two possible situations: Employed workers Three determining elements of the working relationship: work; remuneration; Hierarchical/direct relationship (= authority). Employment contract, by law (civil servants)

The legal framework in Belgium (2) Self-employed workers Two determining elements of the working relationship: work; remuneration. Contract for services

Characteristics of authority in Belgium Title XIII of the Act of 27 December 2006 Work organisation; Hierarchical control; Organisation of working time; Specific criteria (= socio-economic  additional criteria in certain business sectors).

Technique for determining the existence/absence of authority (1) Evidence-based method Work organisation: obligatory list of customers to visit; specific orders concerning the tasks to be accomplished; obligation or prohibition to be accompanied to perform a job. Hierarchical control: control of the worker's presence in the place determined by the employer (sign-in, time table); control of the use of the imposed working method; obligation for the worker to complete detailed reports about his work; the possibility to impose penalties on an ineffective worker.

Technique for determining the existence/absence of authority (2) Evidence-based method Organisation of working time: hours set by the employer; obligation for the worker to justify his absences; setting of days off. Additional criteria: ability to hire staff or to be replaced; the fact of working in your own premises and/or with your own equipment; personal and substantial investment of the worker in the business with own capital; personal and substantial involvement of the worker in the profits and losses of the business.

Difficulties encountered Development of the real economy: outsourcing contract; project sourcing contract; management contract; subcontracting agreement; …  dilution of the direct link and hierarchical relationship  appearance of a grey area with a risk of fraud (bogus self-employed persons)

Proposal redesign of specific criteria; weighing of specific criteria; Simplification of the Act of 27 December 2006: redesign of specific criteria; weighing of specific criteria; …  better definition and assessment of the hierarchical relationship