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: 1.15 Crores (2019)
Capital City: Brussels
Languages: English, Dutch, French, German
GDP growth: 1.74% (2019)
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 of 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 the question that violates the law and is not related to the job. When an employer hires an applicant, they need to assure 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
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.
EOR solution in Belgium
While your team at the headquarter focuses on expanding your business, the EOR (Employer Of Records) takes care of hiring and onboarding the new employees as per the employment law of Belgium. Ther 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, 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 who is familiar with the law of the country and helps in speeding 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
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), 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 for your 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 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.
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.