Press Release
For Immediate Release
10 April 2007
ACTE Asks Belgium Ministries to Delay Limosa Penalties For One Month to Adequately Inform Travel Industry
Alexandria, VA --
Citing a lack of advance notice and explanation of Belgium's tough new filing process (Limosa) for foreign workers entering the country for five days per calendar month or longer, the Association of Corporate Travel Executives (ACTE) has officially asked several Belgian ministries to delay the program until May 15, 2007. According to a statement issued by ACTE's Executive Director Susan Gurley, Limosa is causing considerable confusion among travel managers in the U.S. and in Europe -- even in Belgium.
"ACTE's global headquarters received a substantial number of calls from travel managers across the United States, attempting to double check the type of employment information being requested from business travelers heading to Belgium for meetings or sales calls," said Gurley. "We then started receiving similar calls from Europe. Attempts to clarify the situation revealed that some travel management authorities in Belgium were equally unaware of the new requirements."
Limosa is a program designed to reduce illegal employment in Belgium. It requires corporations to declare the nature of an individual's business in the country, the origin of the business, and certain other financial disclosures. ACTE's request to the Belgian Ministry of Social Security is twofold: to forestall the Limosa process until it can be adequately announced; and to have a representative of the Belgian Social Security Ministry participate in a webcast that fully details the program, and answers key questions.
Gurley added that a potential fine of $8,000 USD for each infraction of failing to file could represent a substantial financial blow to companies with offices and plants in Belgium. An additional penalty of imprisonment of up to two years for the foreign employer could also accompany each violation. Likewise, companies either holding meetings or planning to attend meeting in Belgium might be inclined to cancel until the situation is clarified. An additional penalty of imprisonment of up to two years for the foreign employer could also accompany each violation.
The Limosa application is to be completed electronically before the traveler arrives in Belgium. The electronic certificate must be printed and carried by the traveler. Despite being described as a request for minimal information, one of the questions asks for the traveler's social security number. Considering the incidence of identity theft, this is likely to be a sticking point with travelers from the US. According to ACTE, travel managers have questions regarding how this information is stored, who has access to it, and how long will it be kept.
The Limosa process applies to any self-employed individual or business traveler from outside Belgium, who will be in the country for five days per calendar month or longer. The process must be completed online, and appears cumbersome for travelers who find their business trips extended beyond the original plan.
There is some question of legal liability as well. Corporations filing on behalf of travelers could be incurring responsibility for the information submitted, while travelers filing on their own may still be incurring potential penalties for their employers. ACTE would like each of these issues to be addressed in detail.
"We're not asking that the process be suspended," said Gurley. "But we would like the penalty aspect of the program to be suspended for 30 days, which should provide enough time to increase awareness of the Limosa program. Not only would this benefit companies with business travelers going to Belgium this month, but it will also prevent Belgium from losing revenue due to shortened or canceled business trips."
The Limosa process spans the jurisdiction of the offices of Labor Law Inspection Department, the Social Security Administration, International Employment, and Work Permit Authorization in Belgium. ACTE has contacted several of these ministries.
A number of ACTE members indicated their travel policies were being adjusted to accommodate the Limosa process, though a small percentage claimed they may shorten their business trips to Belgium to less than five consecutive days per month. A least one firm is planning their trips to fall at the month's end, thereby getting around the regulation by extending trip time to a second month.
To read more about Limosa, CLICK HERE.
For more information, contact:
Debbie Flynn
CEO
Brighter Group
The Pod, London's Vertical Gateway
Bridges Wharf, Battersea
London SW11 3BE England
T: 020 7326 9880
F: 020 7326 9890
E: [email protected]
W: www.brightergroup.com