Arrears of salary due to the social secretariat
October 2022 – Most companies entrust their salary administration to a social secretariat. Payroll processing has become so complicated that only specialised companies can carry out this task. But what happens if they make a mistake?
The facts
Social secretariat X is responsible for the salary administration of a non-profit association. Mr. A has been working for the non-profit association since 2006, but in 2016 it became apparent that his salary was not calculated in accordance with the applicable joint committee scales. In May 2017, the A.S.B.L. changed its social secretariat and asked the new social secretariat on 2nd May 2017 to take the necessary steps to rectify the error.
The new social secretariat took over the payment of salaries and the arrears were paid from the end of May 2017.
However, the new scales are only applied from 1 October 2016. Nothing is done about the wages before this date, which does not satisfy Worker A, who then turns to the court.
Prescription
The first judge ordered the non-profit association to pay the back pay for the period from 2 May 2012 to 30 September 2016. The date of 2 May 2017 is the date on which the A.S.B.L. instructed the social secretariat to make the necessary corrections. As the limitation period is five years, the worker, therefore, receives the back pay for the period from 2 May 2012 to 30 September 2016. This amount is increased by default interest, calculated at the legal rate until the judge's decision.
The former social secretariat is obliged to draw up rectifying pay slips at its own expense. In addition, the social secretariat must also reimburse the interest that the A.S.B.L. must pay to the employee. Finally, the first judge ordered the social secretariat to pay 4,000 euros as compensation for the loss of a chance to adjust the budget of the ASBL to the actual salary costs of A.
The parties appealed, but the Labour Court upheld a large part of the judgment.
The Court also confirmed the obligation of the social secretariat to draw up corrective pay slips at its own expense but reduced the damages for loss of opportunity and the interest for late payment.
With regard to the default interest, the Court considers that the A.S.B.L. could have paid the salary arrears up to 2012 during the month of June 2017. The fact that this payment was only made in 2019, after the court decision, is not attributable to the social secretariat.
The compensation is therefore limited to the default interest for the period from May 2012 to June 2017.
With regard to the loss of opportunity, the Labour Court recognises that there was damage, but reduces the damages to EUR 1,500.
The social secretariat must pay the piper
When the error of the social secretariat is proven, the costs generated by this error can be charged to this company. Not the salary itself, of course, but all the other costs incurred as a result of the error in calculating the salary, such as corrective pay slips, increases in social security contributions, accrued interest and, as in this case, the damage resulting from the loss of the opportunity to adjust the budget in line with the actual cost of salaries.
