Entrepreneurs beware: from 2025 on, you could be held liable more easily
In the ever-changing legal landscape in Belgium, a significant change is on the horizon that is of great importance for entrepreneurs across all industries. With the introduction of new legislation on non-contractual liability (the new Book 6 of the Civil Code), expected to come into effect on 1 January 2025, the rules regarding non-contractual liability are undergoing a profound change. "This new legislation will have a severe impact on how businesses manage their legal relationships," explains Dirk De Maeseneer, partner at Litiguard Law Firm. Dirk recently gave a well-attended online lecture on this subject, a sign that many entrepreneurs strive to be optimally prepared for these impending changes.
What are these changes exactly?
"Until now, there was a clear rule: if an agreement exists, that agreement always takes precedence in handling damage claims. But from 2025 on, this principle will change fundamentally," Dirk De Maeseneer explains. The new legislation lifts the prohibition on a concurrence of a contractual claim and a non-contractual claim. "This means you now have the choice to either file a claim based on the contract or choose to file a claim outside of the contract, even if there is a contractual relationship," he continues.
The impact on directors and employees
This new legislation also sees the end of the ‘quasi-immunity’ that directors and employees previously relied upon. "Until recently, directors and employees enjoyed a form of protection against certain legal claims. With the new legislation, it becomes easier to directly hold them liable for damage caused by their actions, even within the scope of their job position," Dirk explains.
What does this mean for my company?
It is important to review your contracts to ensure they are up-to-date with the new legislation.
Can I still be protected against claims?
Yes, but it requires precise contractual agreements and possibly a revision of existing contracts.
What are the first steps I should take?
Start by assessing your current contractual relationships and consult with a legal advisor about the potential impact of the new Book 6 on your situation.
Special attention for agents
"An important part of the new legislation is the focus on agents within the chain provision. Whereas previously they could rely on a form of protection, the new law makes anyone involved in the execution of a contract potentially liable for damage," Dirk emphasises. This highlights the importance of clear agreements and diligence in every business transaction.
The importance of meticulous contracts
"Despite the amended rules, it is crucial to comply with contracts. Specific legislation and provisions within contracts shall retain their precedence," Dirk reminds us. The transition to the new legislation also raises questions about dealing with existing contracts and disputes.
A new era of responsibility
"The introduction of the new Book 6 of the Civil Code marks a significant moment for the Belgian legal system. It offers both opportunities and challenges for everyone in business," Dirk concludes. It is vital to be prepared for these oncoming changes.
Want to know more? Contact Dirk De Maeseneer at +32 495 50 54 17 or via email: ddm@litiguard.eu