New Belgian Government To Make Significant Changes To Belgian Labor and Employment Law

After months of negotiations, Belgium’s new federal government has reached an agreement introducing significant changes to labor law, employment flexibility, and social security. These reforms aim to boost employment rates, simplify regulations, and reduce labor costs for employers.  

In this alert, we highlight the key labor and employment measures that have been agreed. 

1. Increased Flexibility: Annualization of Working Time and Flexible Work Arrangements 

• Annualization of working hours: After consultation with the social partners, a new legal framework will be introduced by June 30, 2025, allowing for the annualization of working time and 'accordion' schedules for both full-time and part-time jobs. This system will require employee consent to ensure no loss of rights, with a choice offered between compensatory leave or financial compensation. Where possible, a time registration system will be implemented.
• Relaxation of night work restrictions: The ban on night work is to be abolished. Regulations on business opening hours will be made more flexible to improve Belgium’s competitiveness with neighboring countries, particularly in retail and e-commerce. Night work will now start at midnight instead of 8 PM, without loss of rights for employees currently working between 8 PM and midnight. Existing night work premiums defined in collective agreements will remain applicable.

2. Hiring and Dismissal: New Probation Periods and Severance Pay Limits 

• • Reintroduction of probation periods: Employers will be allowed to terminate employment with a one-week notice period during the first six months of employment (currently, the notice period is 6 weeks after six months of employment).
  • Cap on severance pay: For new hires, severance pay will be capped at 52 weeks.

3. Social Dialogue and Industrial Relations 

• Stricter regulations on the right to strike: Social partners must update the 2002 Agreement on the Right to Strike by December 31, 2025, ensuring compliance with international standards and jurisprudence. The right to strike remains protected but must respect public order and individual rights. 
• New rules regarding the protection of non-elected candidate employees’ representatives: The protection against dismissal remains unchanged for elected representatives. However, non-elected candidates will now only be protected for six months instead of two years. 

4. Employment Activation and Unemployment Benefit Restrictions 

• • Time limitation on unemployment benefits:
    • Unemployment benefits will be limited to a maximum of two years. Short-term work interruptions will prolong this limit. 
    • The duration of benefits depends on career length, with one year of work in the last three years leading to a maximum of one year of benefits. For every four additional months of work, one additional month of benefits is granted, up to a maximum of two years after five years of work. 
  • Reinforcement of exceptions to a decrease in unemployment benefits

The government will strengthen some of the exceptions to a decrease in unemployment benefits. Also, to ensure a fair transition, it will only gradually increase the number of career years required to maintain full benefits. 

• • • The required professional career length to qualify for exceptions (currently 25 years) will increase to 30 years in 2025, and to 35 years in 2030. 
    • Job seekers over 55 years old will not be subject to the time limitation on unemployment benefits, provided they have, from 2025 onwards, at least 30 years of professional career. 
    • These measures aim to align benefit eligibility with career length, ensuring that those with long employment histories maintain stronger financial security. 
  • Dismantling of pre-retirement (RCC/SWT) schemes:
    • No new entrants into the pre-retirement schemes (RCC/SWT) will be accepted from the date of the government agreement, except for medical pre-retirement cases. 
    • Employees in companies that announced restructuring or collective dismissals before the agreement date will maintain access to the agreed pre-retirement schemes. 
    • The government will actively monitor medical pre-retirement applications and may adjust admission conditions in case of abuse. 
  • Reduction of assimilated periods for pension rights:
    • From January 1, 2027, assimilated periods that make up more than 40% of an employee’s career will no longer be counted for pension rights (gradually reduced to 20% by 2031). 
    • Unemployment periods, pre-retirement periods, and career-end jobs will be counted based on a capped fictitious salary. 

5. Student Work

• The current temporary increase in the maximum limit for student work – up to 650 hours per year –will be made permanent. 
• The minimum age for student work will be set at 15 years old. 

6. Flexi-Jobs

• Flexi-jobs will be possible in all sectors, but individual sectors may provide for an opt-out or additional conditions.
• The maximum tax-free annual income will be increased to €18,000.
• The minimum wage will rise from €17 to €21 per hour.

7. Employer Responsibility for Long-Term Sick Employees 

• Employers will be encouraged to actively manage absenteeism and create a work environment that helps to prevent long-term sick leave. 
• Companies, excluding SMEs, will be required to contribute 30% of the sickness benefits paid by the RIZIV/INAMI (National Institute for Health and Disability Insurance) for employees aged 18 to 54 during the first two months of primary incapacity after the period of guaranteed salary (30 days). 
• These changes will replace existing sanctions on companies with a relatively high number of long-term sick employees. 

8. Sick Leave Without a Medical Certificate 

• The government will make it possible to take one day's absence without having to produce a medical certificate twice a year instead of three times initially.

9. New Rules on Recurrence of Sickness

• To avoid abuse of the guaranteed salary rules upon recurrence of sickness, a new period of guaranteed salary (30 days) will only be granted after at least eight weeks of continuous work. 
• Employees who return on a part-time basis because of medical reasons will not trigger a new guaranteed salary period if they relapse within this period. 

10. Strengthening Measures Against Social Dumping and Fraud 

• The government will enhance the monitoring of measures against social fraud to ensure stricter enforcement and compliance. 
• Stronger cross-border data sharing between Belgian and foreign inspection services will be implemented. 
• Employers hiring foreign employees must verify the accreditation of foreign service providers before signing the contracts. 
• Companies violating severe social fraud regulations will face stricter penalties, with minimum fines increased to 50% of the maximum penalty. 

11. Overtime and Taxation of Work-Related Benefits 

• Consolidation of tax advantage for overtime, and overtime quota:
  • There will be a consolidation of the tax-friendly treatment for 180 hours of overtime.
  • A voluntary overtime scheme of 360 hours will be implemented, the first 240 hours of which will not entitle employees to additional pay or compensatory leave. These first 240 hours will be exempted from any tax or social security contributions.
  • In the HORECA sector (hotels, restaurants and cafés/bars), the voluntary overtime scheme will be increased to 450 hours, of which 360 will benefit from the above flexible regime.
• Review of collective bonus systems:
  • Tax rules for collective bonuses (CLA 90, profit-sharing, etc.) will be simplified and harmonized without increasing fiscal pressure on employers or employees.

Conclusion: Major Changes for Employers and Employees 

This government agreement marks one of the most substantial overhauls in Belgian labor law, introducing increased flexibility for employers while tightening conditions for unemployment and early retirement. Companies must prepare for adjustments in working time arrangements, dismissal regulations, and collective bargaining frameworks. 

We will continue to monitor these developments and provide you with guidance on their legal and financial implications.