The workforce in Flanders is skilled, motivated and productive. Located at the crossroads of three major European cultures, employees generally have an excellent command of languages (Dutch, French, English and German). This section provides a general guide to the legal issues related to staffing a business.
Specifically, this section discusses the legal provisions with respect to recruiting and hiring staff, wages, sick pay and sick leave, social security, termination, collective bargaining and special issues affecting foreign executives working in Flanders.

Workforce Issues

- Recruiting and making an offer of employment

How does a company go about staffing an organization?

The simplest and least expensive method is to contact the Flemish Employment Agency (VDAB), which is well regarded by the Flemish business community. This official government agency can contact individuals listed on its extensive database and refer candidates for potential employment. There is no charge for these services. The VDAB can also assist with training candidates to acquire skills for which there is a shortage in the labor market or with training those who are unemployed.

A wide variety of services are also offered by private companies to assist with both Belgian and pan-European recruiting campaigns such as on-campus recruiting, image building and Internet recruiting. Companies can also insert classified advertisements in newspapers or place notices at universities. Many agencies assist with the recruiting of temporary personnel both for full-time and part-time assignments. A variety of executive search firms are available to assist in identifying qualified employees. Executive search firms are licensed under Belgian law.

What is the significance of the blue-collar v. white-collar classification when making an offer of employment?

Employees are classified by law as blue-collar or white-collar. This classification is made at a national level and affects employee probation periods, vacation, paid leave in the event of work-related accidents or illnesses, methods and terms for termination, the possibility of including non-competition or arbitration clauses, notice periods and indemnities in the event of dismissal. Special rules apply in relation to some categories of employees such as sales representatives or employees working from home.

What is the Belgian system of industrial committees?

Belgium has developed a consensus model of industrial relations based on negotiation between all parties. As a result of this approach, Flanders has one of the lowest levels of strike activity in Europe. Each business operation comes under the jurisdiction of the joint industrial committee (in Dutch, "paritair comité"), which is established at national level. Each committee comprises representatives of the employees and of the employers in equal numbers as well as representatives of the government. These representatives meet to discuss labor-related issues such as minimum wages, working conditions, special protection, contractual rights and insurance. The decisions of the committee are usually binding on all firms within the industry and cover both white-collar and blue-collar employees. In the case of blue-collar workers in particular, the committee rules determine many aspects of the contractual employer-employee relationship.

What are the factors determining which industrial committee has authority over a specific company?

The core activity of the company determines which industrial committee has authority over it. Contact the Flanders Investment & Trade agency if you would like to obtain additional information about the committee system, including the specific committee that would have jurisdiction over your business.

- Employment contracts

Are there any minimum standards for employment contracts?

Written employment contracts are not required but they are usually recommended. For specific employment conditions to apply, the contracts must be in writing. For example, a written contract will be required if the parties wish to conclude an employment contract for a limited duration, for a specific project or for a part-time job. Without a written document stating its duration, the contract will be subject to the rules and conditions applicable to employment contracts of an unlimited duration. Likewise, a written contract will be required if the parties wish to insert certain clauses into the contract (e.g. non-competition clauses, training clauses, trial periods, if the employee is to work from home, pre-termination agreements or parttime contracts). In the absence of a written contract, these provisions will be considered invalid.

What terms and conditions of employment are mandatory by law?

The terms and conditions of employment must comply strictly with legal provisions such as:

• Although permissible, trial periods of employment are limited in time according to the nature of the position and the level of remuneration;
• Non-competition clauses are only permitted for relatively well paid employees and their admissible coverage is strictly regulated;
• Training clauses must be limited in time, are only permitted for specific types of training and limit the employer to only a certain amount of reimbursemen
• Arbitration clauses may only be included in contracts of employment entered into with top-level employees who are entrusted with the company's day-to-day management or who assume similar responsibilities in a division of the corporation.

- Wages

How are wages established?

The joint industrial committee of each particular sector usually fixes minimum wages for specific occupations. These minimum levels are automatically adjusted according to an index established at national level.

Do the minimum wages set by the industrial committees apply to the senior management of Belgian companies?

Minimum wages apply to all employed personnel. The company has the discretion to pay more than the minimum for all employees, including executives and senior management.

To obtain a work permit the following minimum earnings are required:

• An employee with a "leading function" must earn a gross annual salary in excess of 56,187 EUR (as of January 1 2007);
• A "highly qualified" employee (for a maximum term of employment of four years) must earn more than 33,677 EUR (as of January 1 2007).

Note that these amounts are adjusted annually for inflation.

- Sick pay and leave

What are the requirements regarding sick pay?

Special national insurance exists for most employment-related illnesses (i.e. any sickness that is directly and chiefly caused by the job performed). A national insurance fund, to which employers as well as employees contribute, pays an employee's salary during the course of their illness. In addition, employers may be obliged to pay their personnel for certain days not covered by this fund. Different rules apply in relation to blue-collar and white-collar workers.

- Vacations

How is the number of vacation days determined for employees?

The number of vacation days to which the employee is entitled is determined by the number of days or months during which services were performed (or considered equivalent to work days) in the previous year. White-collar workers who are full-time and employed five days a week (the usual arrangement in Belgium) throughout a year are entitled to 20 days of vacation in the subsequent year.

Blue-collar workers are entitled to vacation on the basis of the number of effective working days performed during the year, with a maximum of 20 days under the five day week system.

Young workers who start their career after leaving school or finishing their apprenticeship are entitled to additional vacation under certain conditions.

Joint industrial committees or individual employers can grant extra vacation days.

Are employees entitled to vacation pay in addition to vacation?

Personnel are entitled to vacation pay. Again, there is a distinction between white-collar and blue-collar workers as follows:

• White-collar workers are entitled to: normal remuneration for each vacation day and 92% of the remuneration of the vacation month.
• Blue-collar workers are not entitled to vacation pay directly from their employer. They are merely entitled to remuneration equal to around 15.38% of the previous year's pay to be paid by special vacation funds and financed by special contributions payable by employers.

A thirteenth month is paid to the majority of employees at Christmas, in accordance with a sector level collective agreement (or individual employment agreement).
Young workers who are entitled to extra vacation days are also entitled to a vacation allowance paid by the state for those days. At the time white-collar workers leave their employment they will be paid a special vacation pay for any day of vacation accrued but not taken upon termination of the employment.

Are employees entitled to paid public holidays in addition to vacation?

Ten days are set aside as holidays with normal pay: New Year's Day, Easter Monday, May 1st (Labor Day), Ascension Day, Whit Monday, July 21st (Belgian National Holiday), Assumption (August 15), All Saints' Day (November 1st), Armistice Day (November 11th) and Christmas Day. When a public holiday falls on a Sunday or a normal day of inactivity the corresponding day off may be taken on the next working day, unless otherwise decided by collective agreement.

What are the regulations concerning maternity and paternity leave?

Maternity leave normally lasts up to a total of 15 weeks (19 in the case of multiple births). One week's leave before, and nine weeks leave after the birth are compulsory, five weeks are optional before or after the delivery (or 7 to 9 weeks in the case of multiple births). However, maternity leave can in some circumstances be replaced by paternity leave. Substituting maternity leave for paternity leave is unpaid by the employer. A maternity payment is payable by a special fund within the social security system. When an employee is pregnant an employer may terminate the contract only for due cause and for reasons unconnected with pregnancy. The parents (i.e. either the mother or the father) are also entitled to three months unpaid parental leave, which can be taken within a six-year period (eight years if the child has a major handicap) after the birth (different rules apply in the case of adoption). In addition, fathers are also entitled to ad hoc paternity leave of 10 days to be taken within 30 days of the birth of the child. The first three days are fully paid by the employer with the remaining seven days mostly funded by a special fund within the social security system.

- Social security

How does the Belgian social security system operate?

All persons employed in Belgium by a Belgian employer or by the Belgian business base of a foreign employer are subject to Belgian social security unless agreed otherwise by an international treaty. For instance, workers originating from member states of the European Economic Area assigned to work in Belgium may remain subjected to their own social security system for a limited period of time (up to a maximum of 24 months). Belgium has also concluded bilateral treaties with several other countries - Algeria, Canada, Chile, Croatia, Philippines, Israel, Morocco, San Marino, Turkey, Tunisia, Yugoslavia and the United States. All employers are required to register with the Federal Social Security Institution (RSZ in Dutch). The employer must pay social security contributions on a quarterly basis. The employer is also responsible for withholding the social security due by employees and for making the necessary payments to the Social Security Administration. The social security system is mainly financed by contributions from both employers and employees. Employers pay approximately 32% to 35% of the gross salary of whitecollar employees and 38% to 41% of the gross salary of blue-collar employees. Employees contribute 13.07% of their salary. The social security system covers health care, sick leave, unemployment benefits, family allowances, maternity leave and statutory pensions. This package provides for much broader coverage than in most English-speaking countries.

Are Belgian social security contributions being reduced?

Several programs have been put in place by the Belgian Government to reduce overall social security costs.

Can foreign nationals be exempt from Belgian social security?

Belgium has concluded social security treaties with several countries under which expatriates from those countries can elect to remain covered by their home country's social security scheme while working in Belgium and be exempt from social security in Belgium.
For example, pursuant to the United States-Belgian Social Security Treaty, US expatriates who remain covered by the US Social Security Scheme can benefit from a five-year exemption from Belgian social security.
For EU citizens a similar exemption exists provided certain conditions are met. Generally, the maximum exemption period is set at five years. Different rules apply to EU citizens who are simultaneously working on the territory of two or more EU member states.

- Termination of employment

What are the legal requirements regarding the termination of employment contracts?

Employees are protected by a set of strict procedural safeguards regarding termination and consequently an employer needs to comply carefully with those rules.

What is the procedure for terminating the employment of a blue-collar worker?

After the trial period the length of the notice period for blue-collar workers who were hired for an indefinite time varies from 28 days to 112 days depending on the length of service of the worker. For blue-collar workers with less than six months service the notice period can be shortened by individual or collective agreement to a seven-day notice period. Joint industrial committees can agree upon derogating notice periods. Providing that proper notice is given, the employer has the unilateral right to terminate a worker's employment. However, the dismissal will be considered as being abusive if it is not linked to the employee's aptitude, his behavior or to any compelling business reasons. If the dismissal is held to be abusive additional compensation equal to 6 months salary will be due.

What is the procedure for terminating the employment of a white-collar worker employed for an indefinite duration?

If a white-collar worker is hired for an indefinite term of employment and has not given his employer substantial cause to terminate the relationship, the employee is entitled to a reasonable notice of termination in writing. Servicing the notice of termination must be in accordance with strict regulations.
"Reasonable notice" is a period sufficient to find similar employment and will be determined by taking into account the length of the employee's service, the age of the individual, the role and the salary involved.

- Protection for specific groups

Does Belgium provide any special protection for specific groups of employees?

Belgium, like most countries, offers protection to certain groups of employees. For example, special rights are granted to women once pregnancy becomes known to their employer.
This includes a ban on terminating the contract of employment on the grounds of pregnancy once the employer is aware of the employee's condition and until one month after the end of maternity leave.
In situations where there are serious grounds for termination which are separate from the employee's physical condition, there is no special protection. If those reasons cannot be proven and the termination is based upon the employee's pregnancy, the female employee is entitled to compensation equal to six months gross salary in addition to her normal entitlement.
In addition, some categories of employees enjoy specific protection by law as regards termination of their employment contract such as trade union representatives, members of the works council or members of similar committees.
This protection applies irrespective of whether the employees are currently or have been a member of such bodies or have only been a candidate for those committees.

- Organizations representing employees

What internal rules and bodies must be established by companies?

Under Belgian law all employers must issue internal labor regulations which must be approved by the workforce and displayed on the work premises.
Any business employing 100 or more people on average must establish a works council (an employee representative body). In principle, the works council is composed of an equal number of representatives ofboth employees and employers. In addition, the employers must establish an internal body for the prevention of accidents and protection at work. As soon as 50 or more people are employed, the employer must set up a fully fledged committee for the prevention of accidents and protection at work (the Prevention and Protection Committee) to address hygiene and health and safety issues.

What are the responsibilities of the works council?

The works council is predominantly an advisory body which cannot interfere with the actual management of the enterprise. The works council meets at least once a month to consult and advise on matters such as working conditions, hiring and firing decisions, social legislation and collective bargaining agreements.
The council examines initiatives aimed at increasing co-operation between management and personnel, makes recommendations, ensures strict compliance with labor safety laws and amends work regulations. It receives reports from management and communicates this information to the workforce. It must be consulted in the event that management is considering closing down the business or terminating employment on a collective basis (special procedures).

What is the Prevention and Protection Committee?

Every employer employing 50 or more people on average is required to establish a Prevention and Protection Committee. The Prevention and Protection Committee is an employee representative body that advises on issues such as hygiene and health and safety. In the absence of such a committee these functions will be performed by the trade union delegation.

What is the role of trade unions?

As in most continental European countries, trade unions play an important role in business in Belgium. They are involved in the industrial committees and they may also be involved at the level of individual businesses through trade union delegations.
The minimum number of staff in a plant or company needed to establish a union delegation varies from 30 to 50. In most sectors, separate blue-collar and white-collar delegations exist within the same company or plant.

- Multilingual issues

What are the regulations regarding multilingual issues?

Many foreign investors are attracted to Flanders because of its multicultural population and the fact that several languages are easily used in the work place. There are a number of regulations regarding the language to be used in contracts of employment as well as in other documents involving personnel.
The language of labor-related documents must be Dutch if the company has an operational base in Flanders. If the base is located in the Walloon region the language to be used within the framework of labor relations should be French. Strict attention must be paid to these regulations because failure to comply can result in the documents concerned being null and void. Belgian law allows the complementary use of another language without penalty however, should circumstances make this appropriate.
In bilingual Brussels, Dutch or French may be used depending on the mother tongue of the employee. In the German-speaking part of Belgium only German may be used.
In the Brussels region a failure to comply with this language requirement does not result in the nullification of the contract. In Brussels and the German-speaking part of Belgium a contract in another language can be replaced by a version in the correct language.

- Special requirements for foreign workers

Are there any restrictions with regard to the employment of foreign employees?

Belgium classifies a foreign employee's relationship with his employer in one of two ways: temporary secondment or attachment.
In the case of temporary secondment, the employment relationship is maintained with the foreign company which assigns the employee on a temporary basis to Belgium with regard to organizing, reorganizing or controlling its activities. The employee is subordinate to the foreign employer - he or she continues to receive instructions from, and is required to report to, the foreign management. He cannot become an employee of the Belgian company. The seconded employee remains on the payroll of the foreign company which continues to pay his salary. In addition, the seconded employee continues to be covered by the foreign company's social security scheme.
In the case of attachment, the foreign employee becomes the employee of the Belgian business and is listed on its payroll. The employee receives instructions from the local Belgian business and performs his or her duties under the authority of the Belgian management. The employee is also subject to the Belgian social security system.
Employees will be eligible for favorable tax status provided in Belgium for foreign executives provided they satisfy either of the following two conditions:

• They are detached either by a foreign corporation to work temporarily with its establishments in Belgium or with another company it controls, or by a foreign corporation member of an international group to work on a temporary basis with another company of the same group or with a control or coordination office of the group or
• Are hired by a Belgian subsidiary company of a foreign corporation or member of an international group to work in Belgium.

What documents are necessary for a foreign worker to be legally employed by a company or business in Belgium?

For all employees, self-employed persons and (self-employed) apprentices coming to work in Belgium temporarily or partially and who, in principle, are not subject to the Belgian social security system, a specific declaration (the so-called Limosa declaration) must be made before they actually start their work. This declaration can be made via the internet at www.limosa.be.
Foreign workers must also have a work permit to be legally employed in Belgium (European Economic Area citizens excepted - temporary measures for employees of 8 new EU member states: Poland, Hungary, Estonia, Latvia, Lithuania, Slovakia, Slovenia and the Czech Republic). In Flanders the application is made with the competent regional immigration authority, the VDAB. The Flanders Investment & Trade agency will provide assistance in this matter. The employee will receive a type B work permit which is valid for a maximum of one year (and for employment with one employer) and is renewable. The employer is responsible for obtaining and renewing the permit.
An employee can apply for a type A work permit if he or she can prove at the time the application is filed that he or she was employed in Belgium for 4 years (in some cases 2 or 3 years) on a type B work permit (except for some types of work/functions) over a period of 10 years during which he or she resided legally and uninterruptedly in Belgium.
A type A work permit is valid for an indefinite period and for any wage-earning employment.

Are there minimum salary requirements for obtaining a work permit?

In order to obtain a work permit an employee will need to earn the following minimum wage:

• An employee with a "leading function" must earn a gross annual salary in excess of 56,187 EUR (with effect from January 1 2007);
• A "highly qualified" employee (for a maximum duration of four years employment) must earn more than 33,677 EUR (with effect from January 1 2007).
  Note that these amounts are adjusted annually for inflation.

What permits are necessary for a foreign individual who is self-employed?

A foreign individual who is self-employed must obtain a professional card (European Economic Area citizens excepted). A number of exceptions are provided. An application for a professional card can be filed with the Belgian Consulate or Embassy in the jurisdiction of the individual's last residence, preferably at least six months before the activity stated on the professional card application begins.

What are the rules regarding immigration of foreign employees?

A non-European Economic Area citizen planning to stay in Belgium for more than three months and planning to carry out professional activities is required to obtain a residence permit called a type D visa.
This visa is usually granted after the immigrant has obtained a work permit or a professional card allowing him to work in Belgium. The foreign worker must register with the municipality of his place of residence within three working days of arrival. The family members of a worker who holds a residence permit will receive authorization to stay in Belgium from the Federal Ministry of Internal Affairs through the Aliens Department.
The application for expatriate tax status must be filed by the employer no later than six months after the month of the worker's employment or assignment to Belgium.