Belgium

Employer Of Record in Belgium

Skuad's Belgium Employer of Record (EOR) solution helps your business expand to Belgium without the need to set up a business entity here. Skuad has an automated HR service platform that assists in the end-to-end management of your remote team. You can leverage its global network to streamline your expansion process. Know more about Skuad’s customized and cost-effective solutions.

Belgium At A Glance 

Population: 11.7 million

Currency: Euro

Capital City: Brussels

Languages: English, Dutch, French, German

GDP: USD 583.44 billion

What You Must Know Before Employing In Belgium

Before trying to set up and expand your local entity in Belgium, one needs to be familiar with the laws of employment in Belgium related to hiring a local citizen or foreign national. Also, decide whether you need an internal team or hired members for your expansion project. In any scenario, partnering with a local entity reduces your time and effort in understanding employment laws in Belgium. Learn how Skuad as your employer of record in Belgium can make the employment process simple for you.

Contractors vs Full-Time Employees

Belgium is a country that prefers full-time employees over contractors. The employment law of Belgium fully favors full-time employees. It is a costly business to let go of a full-time employee. 

When laying off an employee, the severance package includes paying salary for multiple months based on seniority level and years of service provided to the company. A contracted employee is usually hired as a temporary replacement for employees of experience and skill. Contractors provide flexibility to the company in staffing and simplifying the payroll process. 

Due to high tax rates imposed on full-time employees, many are switching to contract-based work to reduce the tax burden on themselves. The strict employment laws have created more opportunities for contractors in Belgium. Talk to Skuad Experts to know more about its customized business offerings for your needs.

Hiring in Belgium

To be able to hire employees in Belgium, you do not necessarily have to hire a local entity. An applicant applying for a job in Belgium is assessed based on the professional skills required for the offer. Various common background checks like education, criminal records, health checks, experience, permission to work in Belgium, etc. are carried out before hiring an employee. An employer is forbidden by law to ask only those questions to the applicant that are related to the nature and working conditions of the job offered. The applicant has the right to not answer a question that violates the law and is not related to the job. When an employer hires an applicant, they need to ensure the employee has a single permit to work in Belgium. Connect with Skuad, one of the best in the business for a smooth hiring experience.

Probation & Termination

Probation Period

The probation period is not allowed in Belgium unless you are a student or a temporary worker. Depending on both parties, a student or a temporary resident may have a probation period of three days, less than that, or no probation period. The following table gives the probation period for workers:

Types of Probation Periods:

For blue-collar workers - 2 weeks

For white-collar workers - 1-6 months 

Termination Of Service

Notice for Termination of Employment

By a mutual agreement between the employee and the employer, the employment contract can be terminated as the fixed-term contract ends.

In case of misconduct, the fixed-term contract of the employee can be terminated by the employer, even if it has not reached the end of the due date. Even an employee can resign if the employer behaves inappropriately. The notice period may differ for every employee.

Learn more

EOR solution in Belgium 

While your team at the headquarters focuses on expanding your business, the EOR (Employer Of Record) takes care of hiring and onboarding new employees as per the employment law of Belgium. The EOR is the new employer for the workforce that you hire and is responsible for local regulations, taxes, payrolls, labor laws, HR, etc. With the help of EOR, the hiring can be done even without setting up an entity. Skuad EOR can help you with all the local information you need to know about Belgium. The experts will also handle tax and even register in the social security office for your company. book a demo today.

Outsourcing Employment Through An Employer of Record

Many businesses use outsourcing services like EOR, and PEO to hire employees in a new country. It is also dependent on the decision of the company, whether they want to create their team for hiring or hire a local entity that is familiar with the law of the country and helps speed up the process of hiring. Skuad EOR solution provides such services that take care of hiring, payroll, compliance, etc.

Types of Visas in Belgium

Some nationals like the EU (European Union) and EFTA ( European Free Trade Association) do not require a visa to travel to Belgium. Also, they do not require a work permit to work in the country. 

A non-EU/EFTA citizens require a visa if they wish to stay in Belgium for more than 90 days. If the visit is for less than 90 days, the foreigners need to apply for a short-stay visa.

There are three types of visas for Belgium:

• Short-term visa
• Non-immigrant visa
• Immigrant visa

Work permits

For a foreign national to work in Belgium, they need to issue a work permit provided by employers.

Connect with Skuad experts to know more about its work permit sponsorship solutions.

Things You Must Know to Set Up Payroll in Belgium

To set up payroll in Belgium, the company need not register legally. To make payments for taxes and employees the setting up of an in-country bank account is not mandatory. To maintain payroll compliance in Belgium, employers have to deduct withholding tax from employees' salaries. Withholding tax should be paid monthly or quarterly to the tax authorities, filing tax returns, and preparing an individual payslip for employees. An employee also has to pay a certain amount of the salary into the social security fund.

Taxes in Belgium

Skuad’s Belgium EOR solution can take care of all HR-related tasks for you while ensuring compliance with the local laws, including those on taxation. To learn more, get in touch with Skuad experts.

Incorporation: How to Set Up A Subsidiary In Belgium

A company willing to set up a subsidiary in Belgium needs to consider factors like the location, business goals, availability, cost, laws, and regulations of the city where you will be setting up the subsidiary. If you are not aware of any of how things work in Belgium, then a consultant can help you and advise you about the incorporation of the subsidiary. To set up a subsidiary in Belgium your company goals play an important role. 

Belgium permits different subsidiary structures like PLC (public limited liability company, PLLC (private limited liability company), and S-PLLC (starter-private limited liability company). Based on the operations and activity in Belgium, the company has different levels and needs to choose a structure that best fits the goals of its subsidiary. To set up your subsidiary in Belgium as PLLC, follow the given steps: 

• Create an account in a Belgium credit institution and deposit a minimum of 20% of your initial capital in that account.
• A standard certificate is obtained that confirms your capital is in a blocked capital account.
• Deposit a financial plan, sign the deed of in-laws, and incorporate it in the presence of a notary. 
• Register the deed of incorporation and notarize the documents.
• Register for social security funds, payrolls, and more with the welfare agency. 
• Arrange for workplace insurance and get visas for professional staff, if necessary.

Skuad offers an easy alternative to all your HR needs by taking over the HR tasks of establishing a subsidiary as your EOR partner. Talk to us to learn more.

PEO

A Professional Employer Organization (PEO) is an organization that shares the responsibility of managing employees and payroll with your company. Unlike EOR services where the complete responsibility of compliance management lies with the outsourced company, a PEO works jointly with your business.

Skuad provides comprehensive HR services for globally managing your employee teams. Learn more by connecting with our professionals today.

Conclusion

Do you think you are ready to expand your company’s business operations in Belgium? Skuad’s Employer of Record Belgium services can make the process fast and easy by handling your HR requirements in compliance with local labor laws. If you want to discuss how Skuad’s payroll management services can help you, please get in touch with us today!

FAQs

1) What is the employer of record in Belgium?

An Employer of Record in Belgium becomes the legal employer for your staff, handling everything from payroll and taxes to labor laws and HR. This lets you hire top Belgian talent without establishing a local entity.

2) What is an international EOR?

Employer of Record services help companies seeking to leverage international talent pools. They function as a cloud-based HR solution, assuming legal employer responsibilities in your target market. This eliminates the need for a local entity setup, a traditionally complex and resource-intensive process.

3) Is employer of record legal in Belgium?

While it is not a legal term in Belgium, Employer of Record services offers a practical solution for companies seeking to hire talent there. The EOR becomes the legal employer of the worker, handling payroll, taxes, and social security obligations. This allows you to bypass the complexities of setting up a local entity.

4) What is the employer of record for foreign employees?

An Employer of Record (EOR) unlocks global talent. They become your legal employer overseas, handling payroll, taxes, and compliance. No local entity setup is needed. Focus on finding the best talent worldwide, while EORs handle the HR complexities in each country.

5) Should I use an employer of record?

Yes. EORs (Employer of Record), like Skuad, simplify hiring. They act as the legal employer for your global talent, handling HR complexities like payroll, taxes, and compliance. This eliminates the need for a local entity setup, saving you time and resources.