1. Social economy as employer and WISEs in Wallonia

Principles of the social economy in Wallonia

In Wallonia, the social economy is defined as “ economic activities producing goods or services, carried out by companies, mainly cooperatives and/or with a social purpose, associations, mutual societies or foundations, whose ethics are reflected in all of the following principles:

1° purpose of service to the community or members, rather than purpose of profit;

2° management autonomy;

3° democratic decision-making process;

4° primacy of persons and labour over capital in the distribution of income. »

(Decree on the social economy of 2008)

Social purpose companies are enterprises that combine a social purpose with commercial / economic activity. The status of ‘social purpose company’ was introduced by the Law of 13 April 1995. It is a commercial company governed by Commercial Law (Articles 661 to 669). As previously explained, ‘social purpose company’ is not a new form of company but, rather, a legal status. As such, it can be attached to any of the classical legal forms provided for under Commercial Law (namely the general partnership; the limited partnership with share capital; the limited-liability company; the limited-liability or unlimited-liability cooperative society; the public limited-liability company; the simple limited partnership; the economic interest grouping). The status of Company with a Social Purpose, imposes the following 9 statutory obligations:

1. Limited patrimonial benefit or no
2. Social purpose enshrined in the statutes
3. Profit allocation policy
4. Limitation of the right to vote at the general meeting
5. Limitation of the dividend (maximum 6%)
6. Annual report on social purpose
7. Terms of access to the status of partner
8. Procedures for the abandonment of the status of partner
9. Allocation of the surplus in the event of liquidations

For certain public utility activities, social economy enterprises are recognized by the public authorities through an accreditation. A legal text establishes what obligations they must respect and what funding and/or benefits they are entitled to.

• Consulting agency in social economy.
• Socio-professional integration center (CISP) with DéFI (training and integration approach) or EFT (work-based training company) sector.
• Structure of Accompaniment to the Autocréaction d’Emploi – (SAACE – cooperatives of activities or incubators of companies).
• Initiative for the development of employment in the sector of local social services (IDESS). Social Economy Initiative (IES; decree IES – EI 2016)
• Work integration social enterprises that aim to reintegrate vulnerable groups into the labour market (e.g. long-term unemployed or disabled people) are widely regarded as social enterprises in Belgium. Social enterprises are commonly treated as part of the larger “work integration economy” (sometimes, the term “social insertion economy” is used), which focuses on the inclusion of people otherwise excluded from the labour market.
• Certificate of social economy employer

The “social economy” certificate allows recognized employers to benefit from the provision, by a centres publics d’action sociale (CPAS), of personnel – workers in insertion – under article 60§7 status at an increased subsidy. This type of provision can be made either within a CPAS or within one of the specific initiatives for integration into the social economy (see list below).

A Ministerial Order (of the Federal State) of 10 October 2004 established a list of social economy initiatives with a view to granting an increased State subsidy to public social action centers for specific initiatives of integration into the social economy.

For the following types of employers, the certificate is issued on request and on the basis of proof of recognition by the competent authority:

• Social economy initiatives or integration enterprises approved under the decree of 20 October 2016 relating to the approval of social economy initiatives and the approval and subsidization of integration enterprises;
• social housing agencies referred to in the decree of the Walloon Government of 12 December 2013 relating to social housing organisations, in particular articles 2 to 11 companies with a social purpose referred to in article 661 of the company code of 7 May 1999;
• socio-professional integration centers (CISP) under the Decree of 10 July 2013 relating to socio-professional integration centres;
• employers who organize “initiatives for the development of employment in the sector of local services with a social purpose” (IDESS) which are approved under Chapter II of the Walloon Government decree of 14 December 2006 relating to approval and subsidization