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#Criminal Law #Employment Law #Compliance

A minor payroll error. Or a criminal offence?

16/10/2026 | Reading time: 4 minutes
Sabrina Fiorelli
Sabrina Fiorelli
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Social criminal law in 2026: higher fines, a new Criminal Code and more reasons to prepare for a social inspection.

 

A Dimona declaration that gets overlooked. A forgotten sectoral bonus. A consultant who receives daily instructions from your team leader. What may seem like a simple administrative oversight is often a breach of the Social Criminal Code, with fines that can increase for each employee involved. And in 2026, the cost of getting it wrong has risen significantly.

Four levels and a multiplier

The Social Criminal Code divides offences into four penalty levels. For offences committed from 1 February 2026 onwards, the following ranges apply:

Level Criminal fine Administrative fine
1 None €100 to €1,000
2 €500 to €5,000 €250 to €2,500
3 €2,000 to €20,000 €1,000 to €10,000
4 €6,000 to €70,000. Aggravating factor: €35,000 to €70,000 €3,000 to €35,000. Aggravating factor: €17,500 to €35,000

Amounts include additional surcharges. For level 4 offences, the court may also impose a prison sentence of six months to three years.

Please note: a single mistake can have multiple financial consequences. For many offences, the fine is multiplied by the number of employees involved, up to a maximum of 100.

Additional penalties. Confiscation (now mandatory), a ban on business operations, a professional ban and the closure of the company could already be imposed by the court. This remains the case. For example, if an employer has saved €10,000 in labour costs by failing to pay overtime, the court may order the confiscation of that amount. For certain serious offences, the court may also exclude a company from participating in public procurement procedures and concessions.

Five practical examples

Situation What goes wrong? Penalty Possible criminal fine
The forgotten Dimona declaration Due to a misunderstanding between HR and the payroll services provider, a new employee is not declared on time. Level 4, per employee involved €30,000 to €350,000 for five employees
Overtime 'settled informally' The team works longer hours and receives informal time off in return. Working time regulations still apply, even if the employee agrees. Level 2, per employee involved €500 to €5,000 per employee
The forgotten sectoral bonus Wages are not paid on time. The outstanding wages also remain payable. Level 3, per employee involved €10,000 to €100,000 for five employees
The employee on long-term sick leave An employer with at least 20 employees fails to initiate a reintegration process within six months for an employee with work potential (incapacity for work starting from 1 January 2026). Level 2, per employee involved €500 to €5,000 per employee
The consultant receiving instructions from the client When providing services involving personnel, the client gives instructions without a written right to do so. Level 3, per employee, for both the service provider and the client. Level 4, per employee, due to the client's failure to submit a Dimona declaration. €2,000 to €20,000 per employee. €6,000 to €70,000 per employee.

The new Criminal Code: what changes for employers?

The new Criminal Code entered into force on 1 September 2026. The Act of 16 March 2026 aligns the Social Criminal Code with the new legislation, while retaining its four penalty levels.

New possible principal penalties. For levels 2 and 3, the court may also impose a probation sentence, community service or a financial penalty based on the benefit obtained. Employers who save on labour costs therefore risk seeing those savings work against them. For level 4, additional options include electronic monitoring, a longer probation period and community service of up to 300 hours, which can be combined with a criminal fine.

Companies: a separate conversion mechanism. A company cannot be imprisoned. The new Criminal Code abolishes the conversion of prison sentences into fines, but the Social Criminal Code provides its own mechanism. For level 4 offences, a legal entity faces a criminal fine ranging from €3,000 to €72,000 before additional surcharges, or €30,000 to €720,000 including the current surcharges, where applicable per employee.

Multiple offences: one inspection, several violations

If an inspection identifies several offences, the penalty depends on two questions: do the offences arise from a single act or from separate acts, and will the case be handled through criminal or administrative proceedings?

Situation Criminal proceedings (new Criminal Code) Administrative proceedings (Social Criminal Code)
One act, multiple offences (ideal concurrence). For example, one undeclared employee, resulting in several obligations being breached at the same time. The principal penalty falls within the most severe penalty level. Additional penalties from all levels are possible and may be combined. Only the highest fine applies.
Separate acts, multiple offences (real concurrence). For example, exceeding working time limits and failing to maintain required social documents. The principal penalty falls within the most severe penalty level. Additional penalties from all levels are possible and may be combined. In the case of multiple level 4 offences, the court may increase the penalty to the next level (imprisonment of 5 to 6 years). The fines are added together, up to a maximum of twice the highest applicable maximum fine.

Social inspection or a pro justitia report? Preparation makes the difference

Social inspectors have extensive investigative powers. They can request documents, record findings and interview individuals. An inspection does not necessarily result in a penalty. However, statements made during an interview often carry significant weight in subsequent proceedings. That is why Moore Law has prepared a practical checklist: 'Interview by the Social Inspectorate'. Would you like to know more? We would be happy to explain our 'Interview by the Social Inspectorate' checklist to you personally.

A pro justitia report does not (yet) constitute a conviction either. A thorough analysis of the case and the possible next steps is essential.

Social criminal law plays a role in the day-to-day HR decisions of every company. Good preparation therefore starts with a review of internal processes and contracts. Moore Law's HR Legal team supports employers before, during and after a social inspection.