Belgium may be best known for waffles, chocolate, and frites, but this small European country has a lot more to offer than fantastic food. As the capital of the European Union, Belgium is home to critical political institutions and a highly skilled talent pool. If you're looking to hire employees in the EU, Belgium is a logical choice.
That said, onboarding talent from another country requires careful consideration. From respecting Belgian employment law to making sure you can pay your workers in the Euro (the local currency), there's lots to think about.
Companies looking to access global talent often turn to an employer of record (EOR) to simplify the compliance and logistics of hiring across borders, easing the burden on HR teams and hiring managers. An EOR can employ people on your company's behalf, taking on the responsibility of payroll, benefits, tax compliance, and other legalities. Below are some considerations for selecting an EOR service in Belgium.
A quick guide to hiring in Belgium
If you're planning to hire abroad, whether in Belgium or beyond, read up on the relevant rules and labor laws first. The legislation can impact many facets of employer-employee relationships, like parental leave, pension contributions, holiday time, and tax withholding. In Belgium, the terms and conditions of employment are not only regulated in laws, but also in collective bargaining agreements.
For example, Belgium law doesn’t allow for employers to include probationary periods for employees. Instead, notice periods are not that long during the first six months of an employee's contract.
In general, notice periods vary according to seniority. For example, an employee who has been employed for four to five months is entitled to four weeks’ statutory notice from their employer. By contrast, an employee who has been employed for four to five years must receive 15 weeks’ notice.
The typical Belgian workweek is Monday to Friday, totaling 38 hours per week. Beyond 38 hours per week in general requires overtime pay, which is usually calculated at 50% above the normal rate.
Non-compete agreements are likewise strictly regulated. For instance, a non-compete agreement can't exceed 12 months and may only be imposed if the annual salary of an employee exceeds a certain salary threshold at termination. Further, companies must compensate the former employee during this restrictive period.
These are just a few examples of what companies hiring in Belgium need to consider. If you fail to respect these laws, non-compliance can lead to fines and legal repercussions. To learn more, check out our comprehensive guide to hiring employees in Belgium.
Benefits of using an EOR to hire in Belgium
If you're considering hiring in Belgium, you'll need to acquaint yourself with an entire new body of employment regulations and tax laws. An EOR can save you time and stress by providing this expertise, so you don’t have to do the research yourself.
An EOR with experience in the Belgian market will already have the knowledge needed to compliantly hire in line with local laws. As a global employment partner, the EOR can employ people in Belgium on your organization's behalf, taking on full responsibility and liability for the employment relationship.
Although EOR services vary according to the provider, some common tasks you can expect an EOR to provide include:
- Compliance: An EOR with local expertise will ensure that your company hires, manages, and terminates workers in line with Belgian labor laws. In the big picture, it can help you remain compliant with international laws, for example by minimizing cross-border tax risks.
- Recruiting, hiring, and onboarding: EORs can reduce the admin burden on your HR team by managing recruitment, early-stage training, and administrative onboarding.
- International payroll: As the legal employer, the EOR will be responsible for running payroll, distributing pay slips, and managing social security and tax withholding (which can add to the costs of hiring in Belgium).
- Benefits management: Many EORs manage not only compensation but also benefits, dealing with parental leave, time off requests, and more.
- Terminations: The EOR can make sure any terminations are handled in line with Belgian laws, for example when it comes to notice periods and non-compete agreements.
By managing all these issues, an EOR can be an efficient alternative to establishing an overseas subsidiary, which requires significant resources and administrative burden, from setting up bank accounts to appointing local directors. Take a look at our guide to EOR operating models to learn more about the types of employer of record services.
How to select a Belgian EOR service
If you're wondering how to choose an EOR provider in Belgium, below are a few points to consider.
Local expertise
First, you want to make sure that any EOR you work with has extensive experience in the country you want to hire in. Some EORs work only within a specific country. Note that while this means you get in-depth local expertise, it also means you may end up working with multiple EORs if you plan to hire in multiple countries.
Services and logistics
Be sure to clarify exactly what type of support you need and make sure the EOR in question offers those services. For example, while some EOR services focus on administrative basics, like payroll and benefits, others manage the entire employment lifecycle from hiring to termination.
Also consider the logistical details. How will you communicate with the EOR? What platform will they use to update you about your international employees? Will you need to use specialized software?
Pricing
Finally, there is the price consideration. Working with an EOR can be practical, and while it's generally less expensive than setting up an overseas entity, EOR costs can add up. This is especially true if you work with multiple EORs across multiple countries.
Oyster as your hiring partner in Belgium
If you want the freedom and flexibility to hire not just in Belgium, but around the world, you might consider working with a global employment platform like Oyster rather than working with different EOR providers for different countries.
Oyster’s automated platform is built for end-to-end compliance, from generating locally compliant agreements to payroll, benefits, equity, and more. Our team of legal and HR experts help you remain compliant, and our services cover more than 180 countries—which means you have access to top-tier talent around the world. When you’re looking to hire across borders, make us your one-stop shop for international hiring guidance and support.
Learn more about how Oyster can help you build a global team with world-class talent.
About Oyster
Oyster is a global employment platform designed to enable visionary HR leaders to find, engage, pay, manage, develop, and take care of a thriving distributed workforce. Oyster lets growing companies give valued international team members the experience they deserve, without the usual headaches and expense.
Oyster enables hiring anywhere in the world—with reliable, compliant payroll, and great local benefits and perks.