Agreements in Belgium

Employment agreements in Belgium are governed by the Act of 3 July 1978 on employment agreements, alongside various collective bargaining agreements and sector-specific regulations. These legal frameworks establish the rights and obligations of both employers and employees, ensuring a structured and compliant employment relationship. Understanding the nuances of Belgian employment law is crucial for companies hiring in the country, particularly regarding contract types, mandatory provisions, and termination procedures.

Ensuring that employment contracts are drafted in compliance with Belgian law is essential to avoid potential disputes and legal challenges. This involves correctly identifying the appropriate contract type for the role and duration, including all legally required clauses, and adhering to regulations concerning probationary periods, restrictive covenants, and the formal processes for modifying or terminating the agreement.

Types of Employment Agreements

Belgian law recognizes several types of employment agreements, primarily distinguished by their duration and the nature of the work. The most common types are the agreement for an indefinite period and the agreement for a fixed term. Specific agreements also exist for particular types of work or categories of employees.

Contract Type	Description	Key Characteristics
Agreement for Indefinite Period	The standard and most common type, with no specified end date.	Provides maximum stability for the employee; termination requires specific grounds or notice.
Agreement for Fixed Term	Concluded for a specific duration or until a specific event occurs.	Must be in writing; maximum duration and number of successive contracts are limited.
Agreement for Specific Work	Concluded for the duration of a clearly defined project or task.	Must be in writing; ends automatically upon completion of the specified work.
Replacement Agreement	Used to replace an employee whose employment is suspended (e.g., due to illness).	Must be in writing; specifies the replaced employee and the reason for replacement.

Agreements for a fixed term or specific work must be in writing for each individual contract. Successive fixed-term contracts are generally limited; exceeding the legal limits can result in the contracts being reclassified as an agreement for an indefinite period.

Essential Clauses

Belgian employment agreements must contain certain mandatory provisions to be valid and compliant. While additional clauses can be included, these core elements are legally required.

• Identity of the Parties: Full names and addresses of both the employer and the employee.
• Start Date: The date on which the employment relationship begins.
• Workplace: The primary location where the work is performed. If there is no fixed place, this should be stated, along with an indication that the employee may be required to work at various locations.
• Job Title and Description: A clear description of the function or type of work the employee is hired to perform.
• Remuneration: The agreed-upon salary or wage, including details on payment frequency and any variable components or benefits.
• Working Time: The agreed-upon working schedule, including daily or weekly hours. Reference to collective bargaining agreements may be sufficient if applicable.
• Holiday Entitlement: Reference to the legal framework governing paid annual leave.
• Notice Periods: Reference to the legal provisions regarding notice periods for termination.
• Applicable Collective Bargaining Agreements: Identification of any relevant collective bargaining agreements that apply to the employment relationship.

For fixed-term or specific work agreements, the contract must also clearly state the duration or the specific work to be performed.

Probationary Period

As of 1 January 2014, probationary periods in Belgium have been abolished for all employment agreements, except for temporary agency work and student employment. This means that employees hired under standard employment contracts (indefinite, fixed-term, specific work) are considered permanently employed from their first day of work. There is no initial period during which the contract can be terminated with shorter notice or without cause, as was the case under the previous probation system. Termination from day one is subject to the standard rules on notice periods or serious cause.

Confidentiality and Non-Compete Clauses

Confidentiality and non-compete clauses are permissible in Belgian employment contracts but are subject to strict conditions for enforceability.

• Confidentiality Clauses: These clauses protect the employer's confidential information, trade secrets, and business processes. They are generally enforceable provided they are reasonable in scope, duration, and the type of information covered. They typically remain in effect during and after the employment relationship.
• Non-Compete Clauses: These clauses restrict an employee from working for a competitor or starting a competing business after leaving the company. For a non-compete clause to be valid and enforceable, it must meet several cumulative conditions:
  • It must be in writing.
  • It must apply only to employees whose annual gross remuneration exceeds a certain threshold (this threshold is adjusted periodically).
  • It must relate to similar activities.
  • It must be geographically limited to the area where the employee can actually compete with the employer.
  • It must be limited in time (maximum 12 months after termination).
  • It must provide for a compensatory payment to the employee for the duration of the restriction (this payment is typically at least half of the employee's gross salary for the restricted period).

If a non-compete clause does not meet all these conditions, it is considered null and void. Specific rules apply to non-compete clauses for sales representatives and in certain sectors.

Contract Modification and Termination Requirements

Modifying an existing employment agreement requires the mutual written consent of both the employer and the employee. Unilateral changes to essential terms of the contract (such as function, salary, or working time) by the employer can be considered a constructive dismissal.

Termination of an employment agreement in Belgium is strictly regulated.

• Termination by Mutual Consent: The employer and employee can agree in writing to terminate the contract at any time.
• Termination for Serious Cause: Either party can terminate the contract immediately without notice or compensation in case of a serious breach of contract by the other party that makes the continuation of the employment relationship immediately and definitively impossible. Strict procedural requirements must be followed.
• Termination with Notice: For indefinite contracts, termination by either party requires serving a statutory notice period. The length of the notice period depends on the employee's seniority and whether the termination is initiated by the employer or the employee. Specific rules and calculation methods apply, which have been harmonized between blue-collar and white-collar workers since 2014.
• Termination with Indemnity in Lieu of Notice: Instead of serving the notice period, the terminating party can pay the other party an indemnity equal to the remuneration corresponding to the notice period.
• Termination of Fixed-Term/Specific Work Contracts: These contracts generally end automatically on the agreed-upon date or upon completion of the specific work. Premature termination is only possible by mutual consent, for serious cause, or by paying the remaining salary until the end of the term (subject to certain limitations after the first half of the contract).

Employers must also be aware of specific rules regarding protected employees (e.g., pregnant employees, employee representatives) for whom termination is restricted or requires specific procedures. Failure to comply with termination requirements can result in significant liabilities for the employer, including payment of termination indemnities and potential damages.