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So What’s Going on in Belgium?
Tuesday, January 14, 2025

Well, a lot in fact! A number of new provisions are taking effect at the start of the new year and we have tried to summarise them for you in one little blog post. Our New Year’s gift to you!

1. Extended information obligations in the event of a transfer of an undertaking

As from 1 February 2025, changes to national Collective Labour Agreement nr. 32 bis (“CLA 32bis” – Belgium’s equivalent to TUPE) will enter into force, increasing the involvement of the new employer (transferee) in the information and consultation process.

Going forward, at the request of the employee representatives or individual employees involved in the transfer, the transferor must communicate the information required to be given as part of the process to the transferee as well. This information sharing must occur during the information and consultation process with the employee representatives or individual employees, and prior to the transfer.

In addition, the transferor must invite the transferee to introduce themselves to the employees or their representatives during the information and consultation process. This invitation must be issued in a timely manner during the information and consultation process, and in any case before the transfer. While there was previously no obligation to do this, in practice it was already quite common for the transferee to have a meeting with the employee representatives and/or the transferring employees ahead of the actual transfer date. CLA 32bis now codifies this practice. CLA 32bis does not, however, oblige the transferee to accept the invitation.

2. State and workplace pensions

  • State pensions

The statutory retirement age will gradually be raised from 65 to 67. A first step will be taken in February 2025 by raising the retirement age to 66.

Early retirement at a younger age remains possible, but the conditions have become stricter in recent years. From the age of 63, early retirement is possible for those with a professional career of 42 years. For those who have worked even longer, early retirement is possible as early as 60 or 61. 

  • Workplace pensions

From 1 January 2025, the minimum return guarantee under the Workplace Pensions Act (WAP) will increase for the first time in 10 years, from 1.75 to 2.5%, due to higher government bond yields over the past two years.

This increase imposes additional financial obligations on employers, who will have to take into account the new minimum return guarantee when calculating their liabilities. If the investments of the pension vehicle are not sufficient to guarantee a 2.5% return, the shortfall will require additional financing by the employer.

3. Revision of the rules around extra-contractual liability

Up until now, so-called agents or auxiliary persons (such as employees) were protected from liability, meaning that an employee could not be held liable by a third party (such as a customer or business partner of the employer) for damages caused in the course of their work.

As from 1 January 2025, in relation to events occurring from this date, the provisions of the new Civil Code will apply and this protection for agents has been removed. Employees can now be held directly liable by a third party, even if they themselves do not have a contract with that party. Directors of companies, representatives, subcontractors and employees can also qualify as auxiliary persons under the new regime.

This means that for events occurring from 1 January 2025, a contractual party can sue an employee directly for compensation, but only if the damage has been caused by fraud, gross misconduct or repeated minor fault of the employee. This limitation does not apply however where the damage has been caused by “impairment of physical or psychological integrity” or intentional damage by the employee.

While it will be exceptional for customers to go after your employees instead of the company (deeper pockets and all) and employers will still remain liable for all errors made by employees, including minor errors, that cause damage to third parties, your employees (and directors) may wish to be protected against this possibility. The New Civil Code allows contracting parties to include provisions in their agreements with customers, suppliers and other contractors stating that their employees and other auxiliary persons will not be held liable during the performance of their contracts.

This may be something that you want to consider including in your contract templates. We will of course be happy to assist.

4. Indexation time

January is traditionally also the time where there are wage increases in a lot of sectors due to the automatic link to the index. The most notable sector in this regard is joint committee 200. Both minimum wages and actual salaries will increase by 3.58% this January.

The amount of the annual premium payable in this sector is also indexed annually. The initial amount of €250 will increase to €323.69 this year. This premium is paid during the month of June, unless it was converted into another equivalent benefit. So quite some hefty changes already for the start of the year. And with the new (national) government almost in place – optimism is a moral duty, it is inevitable there is more to come.

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