District cells' social fraud inspection audits focus on construction sector

Social fraud inspection audits in construction sector
COVID-19 inspection audits in construction sector

The COVID-19 pandemic has not prevented the Social Information and Investigation Service (SIOD) from proceeding with its inspection audits. The available (provisional) data(1) reveals that the construction sector has remained a highly targeted sector. This article highlights some interesting recent findings.

Social fraud inspection audits in construction sector

According to the SIOD's 2020 action plan, it aimed to conduct 2,000 audits in the construction sector, including so-called 'flash audits', in March 2020.

The SIOD recently published the results of the social audits, conducted by the different district cells in Belgium, covering Q1 to Q3 of 2020. District cells are part of the SIOD and organise and coordinate social inspection audits concerning illegal employment and social fraud.

An analysis of the data reveals the following:

• So far, a total number of 6,982 audits have been reported, of which 2,201 (31.5%) have been conducted in the construction sector.
• A total number of 13,309 employees have been audited, including 3,072 (23%) employees active in the construction sector. Further, 5,067 self-employed individuals have been audited, including 1,524 (30%) active in the construction sector.
• In the context of the 2,201 construction sector audits, 337 breaches (15%) concerned 'undeclared work' – namely, there were:
  • 114 breaches of immediate declaration of employment to the National Social Security Office (Dimona) legislation;
  • 16 breaches of part-time working legislation;
  • six breaches of social security legislation (eg, non-compliance with payment of contributions on time);
  • 78 breaches of unemployment legislation;
  • 46 breaches of foreign employee legislation (eg, employees who did not possess the legally required work or residence permit); and
  • 77 breaches of cross-country information system for migration research (Limosa) legislation.
• Out of these 2,201 audits, 1,246 breaches concerned more traditional breaches (eg, relating to working time).
• The data reveals that non-compliance with Dimona and Limosa legislation almost always results in a formal pro justitia. The same goes for employing personnel without the required work or residence permit.

This is not the case for social security-related breaches, because in such a scenario, employers often commit to making the necessary social security rectifications, possibly in the context of an amicable arrangement with the public prosecutor's office.

For the sake of clarity, the figures above do not provide for an overall figure of all types of social inspection audit. The figures cover only the coordinated actions instructed by the district cells. Standard social inspection audits conducted by the Labour Inspectorate are not included in the overview above.

Although provisional, the figures demonstrate that in 2020 the construction sector was a highly targeted sector. This trend is expected to continue in the coming years. Despite the various legislative measures that were taken in previous decades, the construction sector, social dumping and social fraud are still often mentioned in the same breath.

COVID-19 inspection audits in construction sector

In September 2020 the SIOD conducted flash audits focusing on compliance with COVID-19-related measures in the construction sector. In total, 127 companies were subject to flash audits, during which 183 employees and 87 self-employed individuals were checked.

From these figures, it can be concluded that most employers in the construction sector have been complying with COVID-19-related health and safety measures (eg, complying with social distancing rules).

Although the SIOD announced that it would not continue flash audits in October 2020 and thereafter, it still urges district cells to continue to control compliance with COVID-19-related sanitary measures. The SIOD has published a COVID-19 (sanitary measures) checklist to be used by inspectors, which reveals the points on which inspectors are focusing, including:

• hand hygiene;
• social distancing;
• general hygiene;
• ventilation;
• information towards third parties (eg, interim workers or external contractors);
• telework; and
• compliance with the specific and derogatory registration obligation in the construction sector when temporarily calling on foreign workers or self-employed individuals.(2)

For further information on this topic please contact Emma Van Caenegem at ALTIUS by telephone (+32 2 426 1414) or email (emma.vancaenegem@altius.com). The ALTIUS website can be accessed at www.altius.com.

Endnotes

(1) See here.

(2) The most recently updated checklist are available here (in Dutch) and here (in French).