european e w handbook - · pdf file2 ogletree deakins european employment law handbook...

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OGLETREE DEAKINS EUROPEAN EMPLOYMENT LAW HANDBOOK

INTRODUCTION

Welcome to the Ogletree Deakins European Employment Law Handbook—a handy guide to the employment

laws of 17 European countries.

Employment laws vary considerably throughout Europe, even among the member nations of the European

Union (EU), which can each have quite different versions of EU directives. The implementation of these laws

also can be very different, with the collective negotiation environment of works councils and unions being

widespread in some countries and almost nonexistent in others.

We recognize that it can be time-consuming and confusing to manage employees across different European

countries, so we hope this handbook is a helpful starting point for your employment law queries. Our

attorney-authors have extensive experience dealing with human resources issues throughout Europe. Our

team is supplemented by close relationships with handpicked local counsel from highly rated law firms. We

appreciate their help in creating this handbook.

Please note that the information contained in this handbook is current as of January 1, 2019. The laws

referred to herein are subject to change, and the information is not legal advice.

If you have any questions, or would like to know how the Ogletree Cross Border Practice Group can help

with your employment law issues in Europe, please contact us. We look forward to speaking to you.

Diana J. Nehro, Chair, Cross-Border Practice Group

[email protected] 599 Lexington Avenue

Suite 1700 New York, NY 10022

646-283-2037

[email protected] St Pauls House

8-12 Warwick Lane London EC4M 7BP

+44 (0)20 7822 7627

Roger James, Partner, European Contact,

Cross-Border Practice Group

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INDEX

BELGIUM

CZECH REPUBLIC

DENMARK

FINLAND

FRANCE

GERMANY

HUNGARY

IRELAND

ITALY

THE NETHERLANDS

NORWAY

POLAND

ROMANIA

SPAIN

SWEDEN

SWITZERLAND

UNITED KINGDOM

4

16

29

41

55

69

83

93

105

118

135

148

160

175

185

199

211

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BELGIUM

CORPORATE REGISTRATION REQUIREMENTS

EMPLOYMENT STATUS AND HIRING OPTIONS

A foreign entity can engage people directly in Belgium and does not need to set up a local subsidiary. Whether or not

there is a local subsidiary, payroll registration is required, and employers are required to withhold income taxes and

social security taxes from payments to employees—in contrast to independent contractors, who are paid gross and are

responsible for their own taxes.

The two main methods of engagement are as an employee or a self-employed independent contractor (sometimes also

called a consultant). While an employee works under the authority of his or her employer, a self-employed worker has

freedom and autonomy in organizing his or her work.

Whether a person is working as an employee or on a self-employed basis depends on the facts rather than the type of

contract used. Key factors to determine this are (a) the will of the parties, (b) the freedom to organize one’s work and

working time, and (c) the possibility of (hierarchical) control.

Employees are protected by Belgian employment law and adhere to the social security scheme for employees. A self-

employed individual does not benefit from employment law protection. However, there are tax advantages to being self-

employed.

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BELGIUM

EMPLOYMENT STATUS AND HIRING OPTIONS

RECRUITMENT

Different types of employment rights can apply to blue- and white-collar workers, students, sales representatives, remote

workers, and agency workers.

Probationary Periods

Probationary periods are not allowed, except for student employment agreements and temporary agency work

agreements, where they are limited to the first three working days.

The following steps are required on recruitment of an employee:

• Register with the National Office for Social Security (RSZ - ONSS) and the office for direct taxes (known as a Dimona

declaration)

• Subscribe to industrial accidents insurance with a recognized insurance company. This covers medical costs and an

employee’s income if he or she becomes unfit for work as a result of an industrial accident.

• Set up an internal health and safety service. An employer must appoint a minimum of one health and safety advisor (for

companies with fewer than 20 employees, this can be the employer) and sign up to a recognized external health and

safety service for medical health checks and other advise on health and safety in case the employer does not have the

requisite knowledge.

• Appoint an authorized agent to keep the compulsory employment documents and act as a post box to which all official

correspondence is sent by the RSZ - ONSS.

• Where applicable, notify posted (seconded) workers and self-employed persons temporarily or partially employed or

established in Belgium from another country (known as a LIMOSA notification):

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BELGIUM

Written employment contracts are not mandatory but

frequently used. However, certain contracts (fixed-term

employment, part-time employment, remote working

arrangements, student work) and clauses (noncompete)

must be in writing.

Legally Required Policies

1. Work regulations: All employers must draw up work

regulations that contain all the salary and work conditions

applicable within the company.

2. Human resources data protection notice

Common Additional Policies

1. Car policy

2. Use and monitoring of electronic devices/

3. communications policy

4. CCTV policy

5. Reimbursement of cost policy

6. Remote work policy

Language Requirements for Documents

There are strict laws requiring all documents that contain

terms of employment or other key information (including

bonus plans) to be in the local language. The language in

question depends on the location in Belgium:

• Brussels region: French for French-speaking members of

staff and Dutch for Dutch-speaking members of staff

• Flemish region: Dutch

• Walloon region: French

• German-language region: German

Other Sources of Terms of Employment

Collective bargaining agreements (CBAs) are widespread

and provide employees with certain rights. There are

national, industry-level, and company-level CBAs.

1. 1. National-level agreements concluded in the National

Labour Council, which apply to all employers in the

private sector: cover general employment rules (e.g.,

CBA 5 on trade union delegation, CBA 109 on unfair

dismissal)

2. Industry-level agreements concluded in a Joint

Labour Committee (JLC), which apply to all

employers in a particular industry (e.g., health

care, construction, retail, insurance, banking):

cover minimum salaries, job descriptions, working

time arrangements, and training requirements.

A company belongs in principle to just one JLC, and

this is determined by the company’s main activity.

3. Company-level agreement concluded between a

particular employer and trade unions: cover specific

employment and salary conditions for that company

only.

REGULATION OF THE EMPLOYMENT RELATIONSHIP

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BELGIUM

Employees are entitled to 20 working days’ annual holidays

when working a five-day week. Those working shorter

weeks have a proportionate entitlement. CBAs at industry

level or company level can grant additional holidays.

Employees are entitled to 10 public holidays on top of their

annual holidays:

• New Year’s Day – January 1

• Easter Monday

• Labour Day – May 1

• Ascension Day

• Whit Monday

• Independence Day – July 21

• Assumption Day – August 15

• All Saints’ Day – November 1

• Armistice Day – November 11

• Christmas Day – December 25

If an employee is required to work a public holiday, he or

she is entitled to a day off in lieu.

Employees are not allowed to work more than 38 hours

a week on an average basis and hour hours a day (see

below for circumstances in which overtime is allowed).

Sunday work, night work, or work on public holidays

is not allowed for most employees (although there are

exceptions). Working time rules do not apply for sales

representatives and employees with a (leading) function

or in a trust position.

Opt-outs from the working time limits are not generally

allowed.