Parcel Delivery Act introduces improved working conditions for parcel delivery drivers in Belgium
24 Nov 2023
The Belgian Chamber of Representatives recently adopted an act holding several provisions regarding the working conditions of parcel delivery drivers (hereafter referred to as the ‘Parcel Delivery Act’). The Parcel Delivery Act is aimed at protecting all parcel delivery drivers – irrespective of whether they perform their activities as employees or self-employed – and combating social- and tax fraud in the sector.
Context and background
In recent years, Belgium, like many other countries, witnessed a significant surge in the demand for parcel delivery services as more and more consumers rely on e-commerce on a day-to-day basis.
However, the proliferation of these types of services hasn’t been without debate or controversy. There’s the related discussion on the classification of platform workers as either employees or self-employed contractors. Notable in Belgium in this respect, is the Deliveroo case, in which the Brussels Labour Tribunal ruled in first instance that Deliveroo drivers exercise their activities as self-employed contractors. The labour prosecutor, however, lodged an appeal against this judgment; the pleadings in this appeal case took place mid-November, and the appellate judgement is expected by the end of the year.
Another point of contention is the fact that, due to fierce competition in the delivery-space and high pressure on pricing, the sector is susceptible to malpractices. Specifically regarding parcel delivery drivers, Belgium recently saw a number of high-profile cases in this respect, where illegal conduct in the chain of (sub)contractors of large parcel distribution companies was unearthed. It’s mainly against this backdrop that the Parcel Delivery Act was adopted.
Scope of the Parcel Delivery Act
The provisions of the Parcel Delivery Act are applicable to the delivery in Belgium, on behalf of a third party, of parcels weighing less than 31.5 kg (self-delivery is thus excluded). The provisions, moreover, only apply to last-mile delivery services; the actual delivery of the parcel to the recipient, which constitutes the last part of the distribution cycle. The act introduces several new regulations, which will be applicable irrespective of whether the delivery driver involved exercises their activity as employee or self-employed (sub)contractor. Indeed, it’s important to point out that the act doesn’t contain any provisions on the classification of parcel delivery drivers as either employees or self-employed contractors.
One of the characteristics of the parcel delivery sector is the fact that large postal service providers use smaller contractors for the last-mile delivery, which either employ delivery drivers or in turn use self-employed drivers as subcontractors. The provisions of the act will therefore not only apply to the large postal service providers that act as principal, but to every legal entity down the chain of (sub)contractors, which will all be considered ‘providers of postal services’.
Obligations introduced by the Parcel Delivery Act
More specifically, the Parcel Delivery Act introduces the following obligations for postal service providers:
Filing a notification with the Belgian Institute for Postal Services and Telecommunications (‘BIPT’/’IBPT’), as well as provide quarterly information to the Institute;
Filing a notification with the National Social Security Office, providing information on their subcontractors;
Setting up a system of daily registration of the parcel distribution time for the – employed or self-employed – parcel delivery drivers that work on their behalf;
Abiding by the new parcel distribution time limits, which are set at maximum 9 hours/day (exceptionally increased to 10 hours, maximum twice per week) and 56 hours/week, without the total cumulative time over two consecutive weeks exceeding 90 hours;
- The prohibition for a provider of postal services to deliver parcels in Belgium – or have parcels delivered in Belgium – for a fee that’s lower than a minimum hourly fee, as determined by the Parcel Delivery Act. This minimum fee will be periodically revised and is reported to be initially set at EUR 32.77/hour;
- Appointing a prevention coordinator, whose job it will be to inform the delivery drivers about their rights and to draft a plan of vigilance, aimed at identifying breaches of the Parcel Delivery Act.
Compliance, monitoring and sanctions
The Parcel Delivery Act contains several measures aimed at monitoring compliance with its provisions by the different competent inspectorate services and introduces new sanctions in both the Code for Economic Law and the Social Criminal Code.
In order to encourage self-control within the sector, a presumption of liability is introduced for a provider of postal services in case one of their direct subcontractors violates the new provisions on parcel delivery drivers’ working conditions. This presumption can only be refuted if the provider can demonstrate not having been negligent and having exercised due oversight on its subcontractor’s obligations.
Entry into force
The Parcel Delivery Act will enter into force in different phases, with the majority of its provisions due to enter into force – in stages – during the 10 months following the publication of the act in the Belgian Official Gazette. The exceptions are the obligation for a provider of postal services to file a notification on its subcontractors with the NSSO – which will enter into force on 1 April 2025 – and the regulations on maximum daily and weekly parcel distribution times – which will enter into force on 1 July 2026.
Conclusion
The Parcel Delivery Act is a clear reaction to recent events and introduces significant legislative changes for companies that are involved in the business of last-mile delivery of parcels in Belgium. Although the act’s provisions will enter into force in stages, it’s recommended to start planning right now, if your company is affected by the act. If you have any questions on this topic or would like our assistance in preparing your company for the entry into force of the Parcel Delivery Act, don’t hesitate to reach out; we’d love to hear from you.
