An Employer of Record (EOR) in Belgium allows you to hire employees legally without setting up a local entity. Acting as the official employer, the EOR manages payroll, taxes, benefits, and compliance with Belgian labor laws.

EOR services provide a streamlined solution for expanding into Belgium, eliminating the complexities of foreign operations. By ensuring full legal compliance and reducing administrative burdens, an EOR helps you mitigate risks and focus on growing your business.

A Belgium Employer of Record (EOR) allows foreign businesses to navigate the country's complex employment laws and regulations efficiently. 

Belgium has stringent employment laws, including strict termination procedures, considerable employee protection, and various collective bargaining agreements. For instance, the average work hours in Belgium is 38-40 hours a week. As of the 2022 regulation, full-time employees in Belgium both white-collar and blue-collar, can request a four-day work week, covering the average work hours in 4 days instead of 5. Also, the social security contributions for employers are pretty elaborate and this may make payrolling difficult for new employers. 

An EOR takes responsibility for compliance with these regulations, reducing risk for foreign employers. It handles payroll, tax, benefits administration, and regulatory paperwork. This allows businesses to focus on their core operations, accelerate market entry, and rapidly onboard local talent in Belgium.

Take your HR Solutions Global
Onboard 2x faster across 140+ countries with Gloroots.
Talk to our experts

EORs in Belgium typically charge a  percentage of the employee's gross salary. This fee covers the operational costs of managing payroll, taxes, benefits, and ensuring compliance with local labor laws. The pricing depends on the service provider, the complexity of the services required, and the number of employees that need to be managed. Also, additional charges may apply for setup, termination, and other special circumstances.

Gloroots’ has a fairly transparent pricing model that’s easy-to-understand and provides optimum investment value. We manage admin tasks and legal compliances associated with employment. Gloroots offers a live dashboard that helps you track your Belgium workforce expenses in real time. It also offers HR support and benefits management to the employees hired through EOR.

‍

‍

Key Metrics For Foreign Employers 

Belgium ranks 16th in the Global Talent Competitiveness Index report. The country is touted to be a leading provider of technology skills in Europe. Moreover, the government offers a number of financial assistance programs to help foreign employers with the costs of hiring and training new employees. 

For example, the "Welcome to Belgium" program provides financial assistance to foreign employers who hire employees from outside the European Union and relocate them to Belgium. These foreign employers may also be eligible for a number of tax breaks, such as a reduction in the employer's share of social security contributions.

Here are some key indicators from the Global Talent Competitiveness Report if you’re considering hiring from Belgium.

Source: The Global Talent Competitiveness Index 2023

Through the Gloroots’ Recrew platform, you can discover amazing talent in Belgium.

Misclassifying employees in Belgium can lead to penalties, disputes, and legal risks. Incorrectly labeling workers as independent contractors may also deny them essential benefits like social security and paid leave.

A PEO/EOR ensures proper classification, accurate payroll processing, and full compliance with Belgian labor laws. By handling employment tasks, an EOR helps you focus on business growth while avoiding misclassification risks.

Belgium's employment regulations are governed by a multifaceted framework, encompassing the constitution, EU directives, federal and regional statutes, and collective bargaining agreements. Compliance with these laws is vital for businesses operating in Belgium to protect workers' rights and interests. Regulations cover areas like working hours, minimum wages, paid leave, and social security contributions. 

Employment Contract

Belgian employment law doesn't require indefinite employment contracts to be in written form, except for fixed-term, part-time, and specific contract types. The language used in the employment contract is required to be either Dutch, French, or German, depending on the employee's workplace location or the registered office of the business firm.

However, it is a common practice in Belgium to have written employment contracts that clearly outline essential terms and conditions.

1. The written contract should identify both the employer and the employee.

2. It should include the start date for the employment (and duration for temporary contracts).

3. The workplace where the employee will perform their duties must be mentioned.

4. The contract should specify the job description, duties, and responsibilities of the employee.

5. Base salary and any additional compensation or benefits must be clearly stated in the contract.

6. The working hours expected from the employee need to be defined.

7. The contract should outline the employee's entitlement to annual leave.

8. It should also include notice periods required for termination of employment.

9. Provisions related to training and non-competition clauses can also be included in the contract.

This might sound overwhelming, but it doesn’t have to be. A solution like Gloroots eliminates the barriers for you. With Gloroots’ Employer of Record offering, hiring and managing employees globally is a piece of cake.

Working time

The standard workweek in Belgium is limited to 38 hours, beyond which employees must receive overtime pay (with exceptions for senior executives and managers). However, some industry sectors may have lower maximum working hours based on collective bargaining agreements. Statutory exceptions apply to this rule.

For shift work, employees can work up to 11 hours per day (50 hours per week), and continuous work allows up to 12 hours. Employers can implement flexible schedules with a weekly working time exceeding 38 hours, as long as the quarterly or yearly average remains at 38 hours per week, subject to specific conditions.

The minimum daily working time is three hours, but exceptions exist. Working at night, on Sundays, or during public holidays is only permitted under strict legal conditions.

Overtime

Employees under full-time working contracts, limited to a maximum of nine hours per day and 38 hours per week, are bound by working hour restrictions. However, these limits may be exceeded in specific circumstances, such as extraordinary work demands or urgent tasks resulting from unforeseen events.

For overtime work, two types of compensation are provided: (1) Paying a higher rate of overtime, 50% additional salary for overtime on weekdays and Saturdays, and 100% additional salary for Sundays and public holidays; and (2) Granting catch-up rest for each hour worked beyond the weekly working hours. For instance, an employee working four overtime hours is entitled to four hours of catch-up rest to be taken within the year.

Certain workers in managerial and trusted positions might be exempt from the rules governing overtime work.

Public Holidays

Employees have the right to receive payment for ten official public holidays. If a public holiday falls on a Sunday or a day when the employee doesn't typically work, the employer must provide a compensatory rest day in return.

Payroll cycle

In Belgium, payroll is processed on a monthly basis for work conducted between the first and last day of the month, and employees usually receive their payment on the last day of the month.

Minimum Wage

In Belgium, there exists a GMMMI (Guaranteed Minimum Monthly Income) along with an absolute minimum income level established at the national level (in cases where no sectoral minimum wage is defined). The GMMMI is calculated based on the total monthly wage, which includes various salary components received throughout the year, such as year-end bonuses and variable pay. The latest GMMMI figures for individuals aged 18 and above amount to 2,029.88 EUR.

Sick Pay

If an employee falls sick or experiences a personal accident, the employer provides the regular salary for a duration of thirty days. After this initial period, the Health Insurance Fund takes over and covers the remaining leave, paying 60% of the employee's salary. However, to avail sick leave benefits, the employee must provide a certified sickness certificate issued by a medical professional.

Maternity and paternity leave

Annual Leave

Employees can avail up to 4 weeks of annual leaves in a year. Any unused leaves (for up to 2 weeks) can be carried over to the following year.

Employees can also cash-in their unused annual leaves with their employer when they leave their job.

Income tax

‍

Social security contributions

Employer Payroll Contributions

Employee Payroll Contributions

Termination 

The termination process varies depending on the type of employment agreement, with dismissal with notice being the most stringent form. Employees employed for at least six months have the right to be informed of the reasons for termination.

Certain employees have protection against dismissal, such as pregnant women who cannot be fired due to their pregnancy. Dismissal is only permitted under specific legal grounds, for example, employee representatives in Works Council and Committee for Prevention and Protection at Work (CPPW) cannot be dismissed without valid reasons.

Certain sectors may have additional procedures outlined in collective bargaining agreements, providing specific information and consultation rules that may not fall under European and national collective dismissal rules, even in cases of multiple dismissals.

Upon the termination of an employment contract, any outstanding wages must be promptly paid, with the payment due at the latest on the first payday following the contract's end (as per Article 11 of the Wage Protection Act).

In situations where a significant percentage of the workforce is made redundant, collective agreements generally entitle them to additional compensations beyond average unemployment benefits. Employees dismissed for serious reasons or those who resign will not immediately be eligible for unemployment benefits.

Severance

Severance pay is only applicable in cases where the employer terminates the employment without providing notice.

Notice period

Employers also have the option to pay in lieu of notice. From January 2023, new rules were implemented for the notice period. During this period, the worker is entitled to take time off for training or coaching. This practice is set to be further improved in 2023, with the aim of encouraging a "transition trajectory" to facilitate a quicker return to the labor market.

Probation period

Belgian law generally prohibits probation or trial periods, except for student hires, temporary workers, and agency workers. During the first six months of employment, employers can terminate an employee without providing a reason.

When hiring globally, ensuring compliance comes with its own set of battles. Employers must ensure all hiring and onboarding activities adhere to employment laws, payroll procedures, DE&I compliance, GDPR and similar data protection, etc. If you think it is hard to set up local entities and start hiring, keeping up with a dynamic compliance landscape is far harder. 

Gloroots helps you minimize all these efforts by providing a single window to manage all these tasks. Our in-house experts fully shield you from cross-border employment and payroll compliance risks. We do this by helping you with generating employment contracts, on-time payments, compliant benefits, while you focus only on screening talent. 

Our promise is a stress-free global employment experience for both you and your employee.

Contact our experts today to kickstart your global hiring campaign.

Growing your team in Belgium means hiring the right talent at the right time, but navigating local payroll, taxes, compliance, and benefits can be complicated. You're required to set up a legal entity and manage extensive local regulations.

With Gloroots’ Employer of Record (EOR) service, you can avoid these complexities. Gloroots manages payroll, tax compliance, benefits administration, and local labor law requirements, letting you focus on what matters most, your team and business growth.