Belgium and the Flanders region have recently introduced a set of new rules that significantly impact the use of subcontracting chains in the construction sector (and in other sectors as well). These new obligations come on top of an already particularly strict legal framework in this sector which is subject to increased scrutiny from the labour inspectorate. Staffing companies whose role is merely to pass on subcontracting construction contracts can be potentially targeted.
What has changed?
Liability and information in Flanders
Since 1 January 2026, the client and the contractor in the construction sector (and other targeted sectors), working on a site located in Flanders Region, are subject to an information duty regarding the direct subcontractor(s) and its/their workers regarding illegal employment of non-EEA nationals, consisting primarily of: (i) a written declaration confirming the absence of illegal employment, (ii) a request for certain worker‑related documents (checklist), and (iii) a duty to report to the labour inspectorate where information is missing.
If the information duty is not complied with, the client and the contractor may be held criminally liable for the illegal employment that is identified.
Subcontracting chains in Belgium
Since 1 January 2025, any subcontractor working in the construction sector in Belgium is prohibited from subcontracting itself the entirety of the works it has agreed to perform for the main contractor. It is also prohibited for a subcontractor to retain only the coordination of the performance of the contract while outsourcing all actual execution.
Who is affected?
Liability and information in Flanders |
The client and the contractor, including any intermediary contractor in a subcontracting chain operating on a site located in Flanders. This potentially covers staffing companies whose role is merely to pass on contracts.
Subcontracting chains in Belgium
Every link in the subcontracting chain below the main contractor is caught by the prohibition. This potentially covers staffing companies whose role is merely to pass on subcontracting construction contracts and retain only coordination.
Sanctions
Liability and information in Flanders | Subcontracting chains in Belgium
Breach of these prohibitions of illegal work/subcontracting are punishable by the highest level of sanctions under the Belgian Social Penal Code (level 4). This may result in significant criminal or administrative fines, and potentially imprisonment and closure of the business. Note that it is not possible to exclude the application of these provisions through a simple amendment of the commercial contract.
How to mitigate the risk
Liability and information in Flanders |
The client and the contractor, including any intermediary contractor in a subcontracting chain operating on a site located in Flanders, must be able to demonstrate to the labour inspectorate that they comply with their information obligations regarding the absence of illegal employment.
Subcontracting chains in Belgium
Companies acting as subcontractors in the construction sector must themselves perform at least part – however small – of the works on site to avoid falling into the prohibition. The law does not define an exact proportion, but legal commentary suggests at least 1% of the effective tasks on the site.
Alternatively, they may adapt their business model within the subcontracting chain.
How we can assist you?
We can assess whether you are caught by these new obligations and how they impact your business, guide you through the implementation of the required measures, and help reduce your legal and operational risks.
