Hire in Belgium with Confidence

Employment Laws

In Belgium, both employment and independent contractor agreements are regulated by the Labor Relations Act and subject to the jurisdiction of local labor courts.

There are several types of employment agreements in Belgium:

• Open-ended (contrat de travail à durée indéterminée; arbeidsovereenkomst voor onbepaalde tijd) –  an indefinite contract
• Fixed-term (contrat de travail à durée déterminée; arbeidsovereenkomst voor bepaalde tijd)
• Replacement (contrat de remplacement; vervangend contract) – an agreement for an employee to replace an existing employee who is temporarily absent
• Temporary (contrat de travail temporaire; tijdelijk arbeidscontract) – an agency contract
• Part-time (contrat de travail à temps partiel; parttime arbeidsovereenkomst)

An open-ended contract can be concluded verbally. All other types of employment agreements must be concluded in writing. If an open-ended contract contains the following clauses, it must be concluded in writing:

• Training
• Non-competition
• Remote work
• Arbitral clauses for high-paid employees with managerial responsibilities

Collective bargaining agreements (CBAs) may apply.

An employment contract must be drafted in French, Dutch or German, depending on the employer’s operating location.

Hiring Practice

Candidates are recruited externally through job boards and advertising. An applicant must submit their CV to the employer.

Selected applicants receive an offer letter, and if there is a need for a written contract, it must be provided and signed before the employment start date.

The following aspects must be collected and included in the contract, in addition to special clauses, if applicable:

• Name and address of the employer and employee
• Employment date
• Place of work
• Description of duties
• Salary information
• Working schedule

Employers reserve the right to perform background checks during the hiring process, but they must not request any information that is not related to the nature of the work. This process can be delegated to third parties, provided that they comply with the European Union privacy regulations.

Belgian Labor Law does not allow probation periods.

Tax Documents

The tax year runs from 1 January to 31 December. Employers are obliged to submit income and social security tax reports (les déclarations mensuelles de revenus et de charges sociales; aangifte inkomstenbelasting en sociale zekerheid) to the Belgian tax authority via its online portal on either a monthly or a quarterly basis. 

Monthly contributions are to be paid by the 15th of the following month. Such contributions are paid quarterly when a company paid less than EUR 41390 in taxes the previous year.

Employers must:

• Deduct and pay withholding taxes from employee’s salary
• File quarterly/monthly withholding tax return (called form “274”)
• Prepare the individual yearly tax slip (called form “281”) and send it to employees and tax authorities

Payer's Tax Withholding & Reporting Requirements

Employers must withhold:

• VAT – 21%
• Personal income tax – from 25% to 50% depending on the size of an employee’s annual income
• Social Insurance Fund contributions – 13.07% (pensions – 7.5%, health insurance – 4.7%, unemployment insurance – 1%)

Remuneration

Employers are expected to pay their staff via automatic monthly payroll deposits in euros to their bank accounts.

Workers’ Rights

In Belgium, employees enjoy the following rights:

• Paid annual leave – 4 weeks
• Sick leave – first 30 days are covered by the employer, the rest – by the Social Insurance Fund
• Maternity leave – 15 weeks (6 weeks for prenatal leave, 9 weeks for postnatal leave); additional 2 weeks are granted for multiple births; first 30 days are paid at 82% of the employee’s salary, and the rest is paid at 75%
• Paternity leave – 15 days, paid at 82% of the regular pay
• Parental leave – 4 months; or 80% reduction of working hours for up to 20 months
• Family care leave – temporary unpaid suspension of services for up to 3 months in case of a sickness of a family or household member
• Adoption leave – up to 6 weeks
• Marriage leave – 1 day
• Court leave – 1 day
• Bereavement leave – 1 day
• Severance pay (in case of a termination without notice) – one monthly salary
• Premium payment rate for overtime work – 150% for work during weekdays and 200% during weekends and public holidays
• Termination notice – based on a duration of the employment, from 2 to 62 weeks

Benefits

All employees must have health and unemployment insurance, which the employer is required to pay for. Pension and health insurance contributions are deducted from employees’ salaries and are paid by employers. Employees may be granted additional internal benefits not otherwise governed by labor laws.

When Paid

Determined by the contract.

Salary must be paid at least once a month.

Employment Laws

Independent contractors must have a certification that can be obtained after passing an online examination (examen

du Jury central; examen Centrale Examencommissie). The exam is needed to confirm a contractor’s basic knowledge of Belgian labor legislation.

There is no specific legal act that regulates an independent contractor relationship. The general labor, civil, and commercial regulations apply.

Hiring Practice

Through professional employer organizations or directly.

Contractors can be hired directly or via a third party, such as a staffing agency. Contractors may be found via word-of-mouth, job boards, social networks, industry bodies, or other forums. Although hiring practices vary, the contractor may be asked to provide a CV, portfolio, and references and possibly sign an NDA.

There is no limitation on the use of independent contractors. However, a person cannot be an employee and an independent contractor at the same company.

An independent contract agreement must clearly stipulate that the worker is free to organize his/her work and his/her working time. Otherwise, the agreement shall be treated as an employment contract. Apart from that, an independent contractor agreement contains the same details pertaining to the nature of the work.

Tax Documents

Contractors file personal income tax reports (mpôt des personnes physiques; personenbelasting) on their own upon receipt of a tax return form (déclaration; aangifte) once a year. Income tax is payable one year after the end of the Belgian tax year.

In Belgium, independent contractors also pay VAT on a quarterly basis. They are exempt from it if their annual taxable income gained from work is less than EUR 25,000. VAT is paid by direct deposit to the Belgian Tax Authority bank account.

Before receiving an independent contractor certification, workers must register with the Belgian Social Insurance Fund for Self-Employed Persons. This fund provides health insurance, maternity, disability, and child benefits to contractors. Contributions are paid on a quarterly basis.

Payer's Tax Withholding & Reporting Requirements

Independent contractors must pay:

• VAT – 21%
• Personal income tax – from 25% to 50% depending on the size of a contractor’s annual income
• Social security contributions – specific, progressive, and dynamic for every contractor according to his/her gross personal income (provisional charges may apply when a contractor has not yet generated any income from the work)

Payer’s Withholding / Reporting Requirements for Independent Contractors:

N/A

Remuneration

There is no obligation to pay independent contractors monthly. Employers are responsible for providing consistent compensation in euros. There are no standard payment terms. Remuneration frequency is to be agreed upon between the contractor and the employer. Payments become due after the contractor issues an invoice.

Workers’ Rights

Contractors are entitled to:

• Health insurance
• Unemployment insurance
• Disability insurance
• Maternity leave – 12 weeks

There is no protection from a sudden termination of the contract.

Benefits

Independent contractors enjoy the benefits granted by the Social Insurance Fund. They do not enjoy any rights granted to employees unless an agreement says otherwise.

Third-party benefits granted by professional employer organizations may apply when an independent contractor is hired through such organizations (i.e. umbrella company) and is considered their employee. 

When Paid

Typical contractor invoices are issued monthly on net 30-day terms. Each invoice usually includes the following details:

• Invoice number and date
• The client’s name and address
• The contractor’s bank details
• Agreed payment terms and due date