Employment Law Review - advocatenkantoor

Employment Law ReviewTwelfth Edition

EditorErika C Collins

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© 2021 Law Business Research Ltd

Employment Law ReviewTwelfth Edition

EditorErika C Collins

lawreviews

Reproduced with permission from Law Business Research LtdThis article was first published in February 2021For further information please contact [email protected]


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i

ACKNOWLEDGEMENTS

ADVOKATFIRMAET SCHJØDT AS

ALRUD LAW FIRM

ARIAS, FÁBREGA & FÁBREGA

BUSE

CANTERBURY LAW LIMITED

CASTEGNARO – IUS LABORIS LUXEMBOURG

CHADHA & CO

CLEMENS

DAI-ICHI FUYO LAW OFFICE

DELOITTE | TAJ SOCIÉTÉ D’AVOCATS

DELOITTE LEGAL SRO, ADVOKÁTNÍ KANCELÁŘ

DELOITTE LLP

DENTONS, CARACAS VENEZUELA

DENTONS & CO

DENTONS KENSINGTON SWAN

DFDL

ENSAFRICA

EPSTEIN BECKER & GREEN, PC

FERRAIUOLI LLC

GIANNI, ORIGONI, GRIPPO, CAPPELLI & PARTNERS

GONZALEZ CALVILLO, SC

HERNANDEZ CONTRERAS & HERRERA

The publisher acknowledges and thanks the following for their assistance throughout the preparation of this book:


Acknowledgements

ii

HERZOG FOX & NEEMAN

MATHESON

MATTOS FILHO, VEIGA FILHO, MARREY JR E QUIROGA ADVOGADOS

PERCHSTONE & GRAEYS

PÉREZ ALATI, GRONDONA, BENITES & ARNTSEN

PETRA SMOLNIKAR LAW

PORZIO RÍOS GARCÍA

PROSKAUER ROSE

RAHMAT LIM & PARTNERS

RODRIGO, ELÍAS & MEDRANO ABOGADOS

RUTGERS & POSCH

SAYENKO KHARENKO

SCHÖNHERR RECHTSANWÄLTE GMBH

SOŁTYSIŃSKI KAWECKI & SZLĘZAK

TSMP LAW CORPORATION

VAN OLMEN & WYNANT

VIEIRA DE ALMEIDA

VILLARAZA & ANGANGCO

WALDER WYSS LTD

ZHONG LUN LAW FIRM


iii

PREFACE ......................................................................................................................................................... viiErika C Collins

Chapter 1 INTERNATIONAL EMPLOYMENT CHALLENGES AND ADAPTATIONS TO THE COVID-19 PANDEMIC ....................................................................................1

Erika C Collins and Ryan H Hutzler

Chapter 2 THE GLOBAL IMPACT OF THE #METOO MOVEMENT .....................................10

Erika C Collins

Chapter 3 EMPLOYMENT ISSUES IN CROSS-BORDER M&A TRANSACTIONS ...............24

Erika C Collins

Chapter 4 GLOBAL DIVERSITY AND INTERNATIONAL EMPLOYMENT ..........................31

Erika C Collins

Chapter 5 SOCIAL MEDIA AND INTERNATIONAL EMPLOYMENT ....................................41

Erika C Collins

Chapter 6 RELIGIOUS DISCRIMINATION IN INTERNATIONAL EMPLOYMENT LAW .......................................................................................................51

Erika C Collins

Chapter 7 ARGENTINA ......................................................................................................................67

Enrique Alfredo Betemps

Chapter 8 AUSTRIA .............................................................................................................................86

Stefan Kühteubl and Martin Brandauer

Chapter 9 BELGIUM ...........................................................................................................................98

Chris Van Olmen

CONTENTS


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Contents

Chapter 10 BERMUDA .......................................................................................................................114

Juliana M Snelling and Gambrill Robinson

Chapter 11 BRAZIL ..............................................................................................................................125

Cleber Venditti da Silva and Rafael Bispo de Filippis

Chapter 12 CAMBODIA .....................................................................................................................138

Vansok Khem, Samnangvathana Sor and Raksa Chan

Chapter 13 CHILE ................................................................................................................................154

Ignacio García, Fernando Villalobos and Laura Kottmann

Chapter 14 CHINA...............................................................................................................................167

Carol Zhu

Chapter 15 CZECH REPUBLIC ........................................................................................................182

Jan Procházka and Iva Bilinská

Chapter 16 DENMARK .......................................................................................................................195

Tommy Angermair, Mette Neve and Caroline Sylvester

Chapter 17 DOMINICAN REPUBLIC .............................................................................................212

Carlos Hernández Contreras

Chapter 18 FRANCE ............................................................................................................................223

Véronique Child and Eric Guillemet

Chapter 19 GERMANY ........................................................................................................................244

Jan Tibor Lelley, Julia M Bruck and Diana Ruth Bruch

Chapter 20 HONG KONG .................................................................................................................256

Jeremy Leifer

Chapter 21 INDIA ................................................................................................................................267

Rahul Chadha, Savita Sarna, Manila Sarkaria and Natasha Sahni

Chapter 22 IRELAND ..........................................................................................................................281

Bryan Dunne and Colin Gannon

Chapter 23 ISRAEL...............................................................................................................................301

Orly Gerbi, Maayan Hammer-Tzeelon, Nir Gal, Keren Assaf and Ohad Elkeslassy


Contents

v

Chapter 24 ITALY .................................................................................................................................318

Raffaella Betti Berutto

Chapter 25 JAPAN ................................................................................................................................333

Shione Kinoshita, Shiho Azuma, Hideaki Saito, Yuki Minato, Hiroaki Koyama, Yukiko Machida, Emi Hayashi, Momoko Koga, Takeaki Ohno and Misaho Takagi

Chapter 26 LUXEMBOURG ...............................................................................................................347

Guy Castegnaro, Ariane Claverie and Christophe Domingos

Chapter 27 MALAYSIA ........................................................................................................................372

Jack Yow

Chapter 28 MEXICO ...........................................................................................................................388

Jorge Mondragón, Luis Enrique Cervantes and Fernando de Buen

Chapter 29 NETHERLANDS .............................................................................................................406

Dirk Jan Rutgers, Inge de Laat, Stephanie Dekker, Annemarth Hiebendaal and Annemeijne Zwager

Chapter 30 NEW ZEALAND ..............................................................................................................425

Charlotte Parkhill and James Warren

Chapter 31 NIGERIA ...........................................................................................................................437

Folabi Kuti and Chisom Obiokoye

Chapter 32 NORWAY ...........................................................................................................................452

Magnus Lütken and Fredrik Øie Brekke

Chapter 33 PANAMA ...........................................................................................................................463

Vivian Holness

Chapter 34 PERU ..................................................................................................................................474

Ernesto Cárdenas and Iván Blume

Chapter 35 PHILIPPINES ...................................................................................................................486

Alejandro Alfonso E Navarro, Rashel Ann C Pomoy and Deanna Carmelli L Go

Chapter 36 POLAND ...........................................................................................................................500

Agnieszka Fedor


Contents

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Chapter 37 PORTUGAL ......................................................................................................................515

Tiago Piló and Helena Manoel Viana

Chapter 38 PUERTO RICO ................................................................................................................528

Katherine González-Valentín, María Judith (Nani) Marchand-Sánchez, Patricia M Marvez-Valiente, Gregory J Figueroa-Rosario, Gisela E Sánchez-Alemán and Nicole G Rodríguez-Velázquez

Chapter 39 RUSSIA ..............................................................................................................................545

Irina Anyukhina

Chapter 40 SINGAPORE .....................................................................................................................566

Ian Lim, Nicholas Ngo and Li Wanchun

Chapter 41 SLOVENIA ........................................................................................................................587

Petra Smolnikar and Tjaša Marinček

Chapter 42 SOUTH AFRICA .............................................................................................................607

Stuart Harrison, Brian Patterson and Zahida Ebrahim

Chapter 43 SWITZERLAND ..............................................................................................................628

Ueli Sommer and Simone Wetzstein

Chapter 44 UKRAINE ..........................................................................................................................642

Svitlana Kheda

Chapter 45 UNITED ARAB EMIRATES ..........................................................................................657

Catherine Beckett, Craig Hughson and Anna Terrizzi

Chapter 46 UNITED KINGDOM .....................................................................................................669

Caron Gosling and Olivia Baxendale

Chapter 47 UNITED STATES ............................................................................................................683

Susan Gross Sholinsky and Nancy Gunzenhauser Popper

Chapter 48 VENEZUELA ....................................................................................................................700

Juan Carlos Pró-Rísquez

Appendix 1 ABOUT THE AUTHORS ...............................................................................................721

Appendix 2 CONTRIBUTORS’ CONTACT DETAILS ..................................................................755


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Chapter 9

BELGIUM

Chris Van Olmen1

I INTRODUCTION

Employment law in Belgium draws on both international and domestic sources. International sources include international treaties, European law, including case law of the European Court of Justice, and International Labour Organization conventions. Domestic sources of law include the Constitution, legislation, in particular the Act on Employment Contracts (AEC) of 3 July 1978, decrees issued by the regions and communities, royal and ministerial decrees, collective labour agreements (CLAs), employment contracts, work rules and customs.

Furthermore, case law, in particular that of the Supreme Court and the Constitutional Court, can have considerable influence on the state of the law.

When rules deriving from different sources appear to be inconsistent with one another, other sets of rules apply to determine the rule that will prevail. For example, international law prevails over national law whenever it is directly applicable, and inconsistency between national sources is resolved by Article 51 of the Collective Labour Agreements and Joint Committees Act of 5 December 1968, establishing a hierarchical classification for most of these sources. For example, a custom or a verbal individual agreement deviating from a written individual agreement serves no purpose legally.

Labour courts in Belgium deal with disputes in relation to employment relationships. Labour courts are independent judicial bodies whose jurisdiction covers all matters relating to labour and social security law. The bench comprises one professional judge and two lay judges, one representing the employers and the other the employees. The procedure is accessible to litigants in person. Litigants may be represented by a member of the Bar. Furthermore, employees may be represented by a member of the trade union to which they belong. Enforcement of labour law provisions may also be initiated by other authorities, including the labour inspectorate or tax and social security authorities.

The decisions of the labour courts may be reviewed by a labour court of appeal, which has a composition similar to that of the labour courts. Appeals against decisions by a labour court of appeal that would constitute a violation of the law may be lodged with the Supreme Court.

The General Directorate for Supervision of Social Legislation (also called the Social Legislation Inspectorate), which is a department within the Federal Public Service for Employment, Labour and Social Dialogue, provides information to employers and employees, gives advice, arbitrates, and verifies whether labour law and the various CLAs are complied with. It has an important role with regard to disputes in individual labour law. Its actions

1 Chris Van Olmen is the founding partner of Van Olmen & Wynant.


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range from preparing drafts of bills and overseeing the operation of existing employment legislation, to registering CLAs and publishing practical comments on legislation. Belgian labour law (except the AEC) is related to criminal law. The Social Legislation Inspectorate can draw up an official report, which could lead to criminal prosecution of the employer.2

II YEAR IN REVIEW

Belgian employment law in 2020 was affected by two important developments: the global covid-19 pandemic and the formation of the new Federal Government De Croo I. Without a doubt, the coronavirus has caused the most consequences for labour law. However, the majority are temporary measures that will disappear once the crisis is at an end. Nonetheless, some of the measures can have a lasting effect. For example, teleworking was made mandatory during the lockdowns in spring 2020 and in November and December 2020; during the time in between, teleworking was recommended. This caused millions of employers and employees to discover the benefits and disadvantages of teleworking. It is expected to remain an important way of working, even after the crisis is over, and the government and the social partners are looking into possible adaptations of the current legal systems in respect of teleworking. The virus has also stimulated the further digitalisation of the justice system and of certain administrative procedures. The most important temporary measures have been a guide to preventive measures that employers have had to take to prevent the spread of the virus, making force majeure temporary unemployment more flexible, the postponement of social elections in enterprises, and specific measures to allow more student work, agency work, short-term work, hiring out of workers and seasonal work, among many others.

Another important event was the formation of a new federal government on 1 October 2020 – the first ‘normal’ majority government since December 2018. Many employment-related measures were announced as part of the coalition agreement, but the new Minister of Employment mostly used the end of 2020 to form his cabinet and set up his policy plan, but was also kept busy dealing with the effects of the covid-19 pandemic on the labour market. The most important new measure is the extension of parental leave for fathers and co-parents from 10 days to 15 days as of 2021 and to 20 days as of 2023.3

Further, some interesting legislation was passed before the formation of the new government. In early February, the Federal Parliament approved the expansion of the protected grounds in the Anti-Discrimination Act based on gender with paternity, co-motherhood, breastfeeding, gender characteristics, adoption and medically assisted reproduction.4 Finally, the Act of 12 June 2020 has implemented a revision of the Posting of Workers Directive,5 which introduces some new information obligations for users of posted temporary agency workers and posted employees.6

2 Act of 6 June 2010 introducing the Penal Social Code.3 Programme Act of 20 December 2020.4 Act of 4 February 2020 to adapt the Act of 10 May 2007 to fight discrimination between women and men

regarding the prohibition on discrimination based on fatherhood or co-motherhood.5 EU Directive 2018/957.6 Act of 12 June 2020 relating to diverse matters of posting of workers to Belgium.


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III SIGNIFICANT CASES

The Supreme Court of Belgium, the Court of Cassation, ruled in a judgment of 7 January 2020 that a local leader of a trade union could be convicted by a criminal court because he had ordered a roadblock in a busy road in the Port of Antwerp, which created a dangerous situation. This conviction was considered a justified restriction of the right to take collective action. The fundamental right to strike does not allow members of a trade union to commit a crime.

In another case of 20 January 2020, the Court of Cassation decided that employees who file a formal complaint regarding violence, bullying or sexually inappropriate behaviour are protected against negative actions (e.g., dismissal) that are a consequence of submitting the complaint.7 However, the Court has clarified that an employee is not protected if the employer can prove that its decision was not a consequence of the submission of the complaint, even if it is related to the facts on which the complaint is based.

In March 2018, the legislator introduced a system whereby an employee who has a company car as part of his or her salary package (which may also be used for private purposes) can exchange that car for a monetary mobility allowance (also called the ‘cash for cars system’), which corresponds to the financial advantage of the car and which is taxed in the same favourable way. However, in a decision of 23 January 2020, the Constitutional Court annulled this legislation.8 To give the (relatively low number of ) employers and employees who have made use of the mobility allowance time to find another solution, the Court is maintaining the effects of the annulled law, pending, where appropriate, the entry into force of the new legal provisions or until 31 December 2020, at the latest. That said, employers and employees can still make use of the ‘mobility budget’ system that was introduced in 2019 and which has the support of the social partners.

Further, the Act of 18 July 2018 created a tax threshold of €6,340 per year. Employees could earn additional income up to this amount from secondary jobs in the gig economy (through digital platforms), from work for non-commercial associations and from citizen-to-citizen work (small non-professional jobs for other citizens). No income tax or social security contributions were payable on this additional income. However, the Constitutional Court invalidated this system in its judgment of 23 April 2020,9 as it deemed that it discriminated against those employees who were not able to benefit from the favourable fiscal treatment. The Court has upheld the provisions of the system until the end of 2020. The new government wants to introduce a new system for work for non-commercial associations.

The Labour Court of Appeal of Brussels has made the first application of the case law of the European Court of Justice regarding the registration of labour time10 in its decision of 22 May 2020.11 Although there is no explicit legal provision in Belgium that makes the registration of labour time mandatory, according to the Labour Court of Appeal, this obligation exists for employers as it would otherwise be impossible to calculate objectively the overtime performed by the employees. This would be in violation of the mandatory rest periods and maximum working hours as laid down in the EU Working Time Directive.

In its judgment of 5 October 2020, the Court of Cassation ruled that workers can fall under the scope of the rules for structural teleworking even when there is no written

7 Court of Cassation 20 January 2020, No. S.19.0019.F8 Constitutional Court 23 January 2020, No. 11/2020.9 Constitutional Court 23 April 2020, No. 53/2020.10 CJEU 14 May 2018, C-55/18, ECLI:EU:C:2019:402, CCOO v. Deutsche Bank.11 Labour Court of Appeal of Brussels, No. 2018/AB/424.


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agreement (as is mandatory for structural teleworking). 12 In addition, the Court stated that teleworkers do not have a right to a lump sum cost compensation of 10 per cent of their gross wage as is provided for homeworkers, because they are explicitly excluded from the legal provisions regarding this compensation.

IV BASICS OF ENTERING INTO AN EMPLOYMENT RELATIONSHIP

i Employment relationship

In principle, an employment contract may be in writing or oral. Nevertheless, many provisions must be provided in writing, including:a training clause;13

b non-compete clause;14

c employment contracts concluded for a definite period or for a specific project;15

d part-time work;16

e temporary work or interim work;17

f work from home;18

g employment contracts concluded with a foreign worker in certain cases;19

h employment contracts concluded to replace an employee who is temporarily absent (e.g., on maternity or sick leave);20 and

i employment contracts concluded with a student.21

For some of these exceptions, the contract must be signed before employees actually commence work. Sanctions range from nullity (e.g., for a non-compete clause) to the legal presumption that the contract has been concluded for an indefinite period (fixed-term employment contracts or those for a specific project).

Parties can amend an employment contract orally – the law does not require a written agreement. The agreed conditions or stipulations of the employment contract cannot be changed unilaterally. However, parties can specify that the employer has the right to change the job function or the working location unilaterally (although this does not mean that any unilateral change will be possible). Without prejudice to the above-mentioned stipulations, the law does not, in principle, impose the presence of particular clauses in the employment contract. However, the imperative legal and regulatory conditions, as well as the CLAs in general, are deemed to form an integral part of the contract and no clause may validly depart from this.

Work rules must contain certain clauses, particularly with respect to the duration and hours of employment, reprehensible behaviour and associated disciplinary sanctions, the

12 Court of Cassation 5 October 2020, No. S.29.008.N.13 Act on Employment Contracts [AEC], Article 22 bis.14 id., at Articles 65, 86 and 104.15 id., at Article 9.16 id., at Article 11 bis.17 Act of 24 July 1987.18 AEC, Articles 119.1 to 119.12.19 Royal Decree of 9 June 1999, Articles 12 and 13.20 AEC, Article 11 ter.21 id., at Article 123.


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method and period for payment of remuneration, and terms and conditions for the allocation of annual leave. These clauses are also deemed to form an integral part of the employment contract, except in cases of individual written exceptions.

Employment contracts concluded for a definite period, or for a specific project, must give precise indications of the definite period, the specified work (i.e., the job performed) or mention that the contract is for the replacement of an employee (who is identified in the contract).

Part-time contracts for a fixed work schedule must state the agreed system and hours to be worked, but for flexible work schedules, the contract need only refer to the provisions of the work rules pertaining thereto. In the absence of a written document containing these specifications, the employee may choose the system and hours of part-time work most favourable to him or her, among those provided for in the work rules or in any other company document.

When it is in written form, a contract of employment must be drawn up in French, Dutch or German. The rule about which language is applicable depends on the location of the employer’s operational headquarters (see Section X).

ii Establishing a presence

Every company that employs workers in Belgium must be registered with the Belgian National Office for Social Security (NOSS). This registration is done automatically by the immediate declaration of employment via the Dimona system. This declaration must be made through the NOSS website.22 For certain specific activities, such as temporary work, an agreement must be obtained. The social security contributions of employees are withheld at source and paid by the employer to the mutual insurance organisations responsible for administering the social security system. The employer is also required to deduct taxes monthly.

Non-Belgian employers who wish to employ someone in Belgium must declare these activities in advance, using the mandatory International Migration Information System (Limosa) declaration.23 In certain cases, the foreign employer must apply for an employment authorisation for its activities in Belgium and its employees must have a Belgian work permit. This obligation is applicable to service provision in the form of temporary employment agency work, provision of labour, exchanges between related companies and the execution of contracting and subcontracting agreements.

If a foreign employer employs Belgian residents in Belgium, it will be deemed to have a Belgian establishment. In this respect, the foreign employer must comply with various tax formalities. It must make professional income tax deductions, file special individual forms24 and a summary form25 to report the salaries paid to its Belgian employees. If Belgian employees carry out operations that are subject to Belgian value added tax (VAT), the foreign employer will have to register with the Belgian VAT authorities. In this respect, monthly or quarterly VAT returns should be filed.

22 www.socialsecurity.be.23 www.limosa.be.24 For example, Form 281.10.25 For example, Form 325.10 for employees.


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V RESTRICTIVE COVENANTS

Non-compete clauses can be executed during or after employment. Non-compete clauses must be in writing and are valid if the employee’s annual gross remuneration exceeds €36,201. There are also restrictions on their applicability if the annual gross remuneration does not exceed €72,402 (these amounts, applicable for 2021, are updated annually).

In general, a non-compete clause is valid after six months if it is limited to activities similar to those currently performed by the employee and to a well-defined geographical area limited to the national territory, if the new employer is a competitor and provided the clause does not exceed 12 months. Except for sales representatives, the clause must provide for the payment of an indemnity to the employee equal to at least 50 per cent of the salary corresponding to the duration of the non-compete provision.

Provided that some specific requirements are met, various departures from the conditions of the general non-compete clause may be made, which means it is a special non-compete clause. This clause may be used only for certain categories of enterprises and for white-collar employees (except sales representatives) with specific functions.

The enterprises concerned have to comply with one of the following conditions:a they must have an international activity or considerable economic, technical or financial

interests in the international markets; orb they must have their own research departments.

In such enterprises, the special non-compete clause may be applied only to those employees whose work allows them to acquire, directly or indirectly, a practice or knowledge peculiar to the enterprise, the use of which outside the enterprise could be prejudicial to it.

If these conditions are met, it is possible to deviate from the general non-compete clause on the points of limitation to the national territory and the maximum period of 12 months. The special non-compete clause may also be applicable when the employment contract is terminated by the employer without just cause after six months from the beginning of the contract and if the contract is terminated during the same six months.

Since 2014, it is prohibited to include probationary periods in an employment contract, except in the cases of agency work and student work.

VI WAGES

i Working time

Working time means the time during which an employee is available to the employer (i.e., the time during which he or she is under an employer’s authority), when the employee cannot freely use time as he or she sees fit. Accordingly, working time may be more extensive than the periods during which work is actually performed (e.g., when on call). Working time may not exceed eight hours a day. Moreover, daily work must, in principle, be performed between 6am and 8pm because of the ban on working at night.

In some cases, however, daily working time may be increased as follows:a to nine hours if the employee does not work more than five-and-a-half days a week (and

has a work schedule in which the employee, in addition to his or her weekly day of rest, has at least half a day’s rest); and

b to 10 hours if the employee is absent from home for more than 14 hours a day because of the distance between the workplace and his or her place of residence or temporary accommodation.


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Except for derogations (laid down by royal decree or collective agreement), the length of each work session must be more than three hours.

Working time may not exceed 40 hours a week. On 1 January 2003, a rule was introduced under which working time was generally reduced to 38 hours a week (i.e., 7 hours 36 minutes a day). Under this general reduction, the weekly work schedule that can be applied in undertakings is either 38 effective hours a week, or 38 hours on average over a specified reference period that allows employers to maintain a work schedule of 40 hours per week by granting compensatory days off (i.e., 12 days off per year).

In principle, night work is prohibited. Night work means any work performed between 8pm and 6am. This rule applies without distinction between male and female employees. There are a number of derogations from this principle relating to industrial sectors, particular activities or particular employees. A number of derogations are provided for by law concerning cases in which night work is regarded as normal or inherent in the activity pursued (e.g., the transport sector, energy distribution companies, hospitals, the catering sector (hotels, restaurants, off-licences), surveillance activities and particular cases of force majeure). Night work may also be permitted by royal decree in particular industrial sectors, undertakings, occupations, or for the execution of particular types of work.

ii Overtime

Particular types of overtime have certain requirements, as follows:a prior authorisation by royal decree for:

• transport operations, loading and unloading (up to a maximum of 11 hours a day and 50 hours a week);

• sectors in which the substances processed can degenerate very quickly (up to a maximum of 11 hours a day and 50 hours a week); and

• work, the execution time of which cannot be clearly defined because of the nature of that work (up to a maximum of 11 hours a day and 50 hours a week); or

b prior authorisation by the trade union representative and the district inspector or head of the General Directorate for Supervision of Social Legislation (or, in the absence of a trade union representative, authorisation by the inspector or head of district suffices) in the event of an exceptional increase of work (up to a maximum 11 hours a day and 50 hours a week).

Overtime may also be performed in the event of force majeure:a without any particular formality, to carry out:

• work for third parties to deal with the threat of an accident or an accident that has occurred;

• urgent work on machinery or equipment for third parties;• work within the undertaking to deal with the threat of an accident or an accident

that has occurred; or• urgent work within the undertaking on machinery or equipment; or

b with the prior agreement of the trade union representative (or a posteriori information to the representative) and notification of the inspector or head of district for work necessary because of unforeseen circumstances (up to a maximum 11 hours a day and 50 hours a week).


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The normal working time limits may also be exceeded for stock-taking (up to a maximum of 11 hours a day and 50 hours a week). This derogation may be used only in respect of work effectively carried out for a period of seven days per employee and per calendar year.

In most cases in which the normal limits on working time may be exceeded, compensatory rest periods must be granted to ensure that the normal weekly working time (38 hours or that determined by collective agreement) is complied with during a reference period. In principle, this reference period is three months (one quarter). However, it may be increased to one year by royal decree, a collective agreement or, in the absence of a royal decree or collective agreement applicable to the undertaking, by the undertaking’s terms and conditions of employment.

Derogations giving rise to compensatory rest periods are:a working in successive shifts;b continuous work for technical reasons;c work to which the normal working time limits cannot be applied;d preparatory and follow-up work;e transport operations, loading and unloading;f work whose execution time cannot be determined;g working with substances that degrade quickly;h exceptional increase of work;i work necessary because of unforeseen circumstances; andj work to deal with the threat of an accident or an accident that has occurred, or urgent

repairs to machinery or equipment by employees of a third party.

Apart from the rules concerning the granting of compensatory rest periods, particular instances in which the normal working time limits are exceeded also give rise to overtime payment as a supplement to the normal wage or salary.

All work done in excess of the limits of nine hours a day and 40 hours a week (or lower limits determined by a collective agreement involving an effective reduction of daily or weekly working time) give rise to entitlement to an overtime payment (except the first hour of overtime, which may be compensated only by rest). The rate of overtime payment is 50 per cent extra for hours worked during the week, including on Saturdays, and 100 per cent extra for hours worked on Sundays or public holidays. Overtime payments must be calculated on the basis of ordinary remuneration (i.e., the average hourly wage that should be paid for the day or week when the employee did overtime).

Derogations giving rise to overtime payment are as follows:a preparatory or follow-up work;b transport operations, loading and unloading;c work for which the execution time cannot be determined;d working with substances that may degenerate very quickly;e exceptional increase in workload;f work justified by unforeseen circumstances;g work carried out to deal with either an accident that has occurred in the past or a new

accident, or urgent repair work to machinery or equipment; andh work on stocktaking and preparing balance sheets.

The Act of 5 March 2017 introduces a system of voluntary overtime hours. An employee may make a request to his or her employer to work a maximum of 130 overtime hours on top


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of his or her ordinary hours with a view to enhancing his or her remuneration.26 A written agreement is needed prior to commencing voluntary overtime. This agreement is valid for six months and may be renewed. However, the limits of 11 hours a day and 50 hours a week cannot be exceeded. Voluntary overtime hours may be accomplished without any specific procedure or particular reason for doing so.

VII FOREIGN WORKERS

There is a general obligation to notify the Belgian authorities of foreign employed or self-employed persons.

Some categories of persons are exempt from this notification, however, because of the nature or short duration of the activities being carried out in Belgium (artists, international transport sector employees, diplomats, participants in scientific conferences, for example). Nevertheless, Belgian law requires, with a number of exceptions, every employer to draw up terms and conditions of employment and to maintain a staff register.

If posting an employee to Belgium, an employer who has served a Limosa notification (see Section IV.ii), or who enjoys dispensation in this regard, is exempt from the obligation to draw up and maintain social documents, such as a staff register, for six months.

As the terms and conditions of employment contain particular information (schedules of working hours, the method of wage and salary payment, for example), they constitute a basic document against which it is verified whether certain fundamental rules of labour law are being applied correctly (working time, rest time, among others). It is also an important instrument for the employer to detail a number of special obligations for its employees.

Through the staff register, an employee can be lawfully listed.In principle, nationals from Member States of the European Economic Area (EEA)

may be hired without specific restrictions, whereas other foreigners need to obtain a work permit. In 2019, the single permit was introduced, combining the work permit and residence permit into one procedure. Exceptions do exist, however. For example, Belgium-based headquarters of Belgian or foreign companies are not required to obtain work permits for non-EEA citizens employed in a managerial position (e.g., project managers, leaders of research and development teams, planning engineers, chief executive officers, chief financial officers) provided well-defined conditions are met.

In general, foreign employees are subject to the majority of the rules that apply to Belgian employees. Moreover, all social law stipulations subject to penal sanctions (the vast majority) are also applicable to employees temporarily posted to Belgium.

VIII GLOBAL POLICIES

Work rules must be established in every enterprise, even if there is only one employee present. The works council is competent to draft and amend the work rules and to take all steps required for informing employees thereof. If there is no works council, the trade union representatives or the employees themselves must approve the rules. The Act of 8 April 1965

26 This amount was increased in 2019; previously, the maximum was 100.


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lays down the procedure to be followed. If there is no works council, proposals for the establishment of work rules must be made by the employer, who must bring the proposals to the attention of employees by posting notices.

The work rules must specify the offences and their related sanctions and the possibilities of redress open to employees who wish to object to the sanctions. All applicable sanctions (fines, suspension, for example) must be specified in the work rules. On the first working day after becoming aware of an infringement by an employee, the employer or its representative must communicate the sanctions to the employee. The employee’s name, the date, justification and sanction have to be registered. Although work rules are binding on both employer and employees, they can be derogated from in an individual contract of employment. Work rules are only binding on individual employees when they have received a copy of them from their employer, even if they were informed through different channels.

Belgian law generally prohibits direct and indirect discrimination. Equal treatment is the subject of an Act of 10 May 2007, which combats discrimination based on gender. This Act also prohibits discrimination on the basis of pregnancy, birth, maternity, paternity, co-motherhood, adoption, medically assisted reproduction, breastfeeding, change of gender, gender identity, gender expression and gender characteristics. Another Act of 10 May 2007 concerns the prohibition of certain forms of discrimination, creating a general framework for the prevention of discrimination on the grounds of age, sexual orientation, civil status, birth, financial status, religion or belief, political opinions, language, present or future health, disability, physical or genetic characteristics, or social origin. This Act applies to all individuals in both the public and private sectors, including in relation to employment issues. Further, the Act of 30 July 1981 (adjusted in 2007) combating racism and xenophobia prohibits discrimination based on nationality, race, colour, descent, or national or ethnic origin. Finally, Chapter V bis of the Act of 4 August 1996 contains measures aimed at preventing harassment and violence at work as well as a procedure for handling harassment and violence claims, and punishing harassment or violent misconduct in the workplace.

IX PARENTAL LEAVE

Female employees are entitled to maternity leave lasting 15 weeks (17 for twins). Pre-natal leave (during the pregnancy) can be granted for up to six weeks. Every pregnant employee is obliged to stay at home from the seventh day before the expected date of birth of the child. The period of rest starting from the day of the birth (post-natal leave) must be at least nine weeks. A maternity allowance is provided by the employee’s health insurance fund; the amount is fixed as a percentage of salary. During the first 30 days of maternity leave, the allowance shall be calculated on the basis of the full salary. Afterwards, a capped salary is taken into account. Pregnant employees are protected against dismissal from the day they notify their employer of the pregnancy until one month after the end of post-natal leave.

Until the end of 2020, male employees and co-parents were entitled to birth leave (or paternity leave) for 10 working days. As of 2021, this is extended to 15 days and as of 2023 birth leave will be 20 days. These days have to be taken within four months of the birth, but fathers or co-parents are not obliged to take their birth leave. During the first three days of paternity leave, the employee retains his full salary. For the days that follow, the employee receives an allowance from his health insurance fund. When there is no genetic father, a co-parent can claim the same leave. If the mother dies in childbirth or if she is hospitalised, a part of the maternity leave can be transformed into paternity leave. In any case, employees who take paternity leave are protected against dismissal.


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In addition to maternity leave and paternity leave, parents are entitled to four months of parental leave. Full-time employees can take these months as full months or in separate full weeks (if the employer agrees) or split the leave by reducing their working time by one-half, one-fifth or even one-tenth (if the employer agrees). Parental leave can be taken at any time until the child’s 12th birthday. A parent can take his or her parental leave if, during the 15 months preceding a written notification to the employer, he or she has been associated for 12 months with an employment contract with the employer. During parental leave, the parent can receive a benefit from the National Employment Office. Employees who take their parental leave are protected against dismissal.

X TRANSLATION

Belgium is a multilingual federal state made up of regions (Brussels, Flanders and Wallonia) and communities (French, Flemish27 and German).

The language for social relations between employers and employees, and for company documents prescribed by law, varies from one linguistic region to another.

The rules that apply depend on the location of the employer’s operational headquarters. If this is in Flanders, the language used must be Dutch;28 if it is in Wallonia, the language used must be French;29 and if it is in the German-speaking community, the language used must be German.30 If it is in the bilingual Brussels region, either French or Dutch may be used, depending on the first language of the employee.31 The employer may add a translation into one or more languages.

In Flanders and Wallonia, these language requirements also apply to any other official written documents and oral communications. If they are not observed, the documents and communications concerned are deemed null and void.

In the Brussels region and in the German-speaking community, the above-mentioned language rule applies to any official written documents, but not to oral communications. Failure to use the correct language does not have any direct consequences as long as the employer issues a new document to replace the incorrect one: the replacement applies ab initio.

Given the broad interpretation of ‘social relations’ by Belgian courts, all documents containing instructions, communications and specific information for employees should be drafted in the correct language.

In a judgment of 16 April 2013,32 the Court of Justice of the European Union (CJEU) ruled that EU law must be interpreted as precluding legislation of a federated entity of a Member State, such as that applicable in Flanders, which requires all employers whose established place of business is located in that entity’s territory to draft cross-border employment contracts exclusively in the official language of that federated entity, failing which the contracts are to be declared null and void by the national courts of their own motion.

The Flemish Decree on the use of languages in social relations has been modified with a view to ensuring compliance with that ruling. It now provides that a version having legal

27 It is the Flemish community, but Flemish is not a language. The language of Flanders is Dutch.28 Decree of 19 July 1973.29 Decree of 30 June 1982.30 Laws on the use of languages coordinated by Royal Decree of 18 July 1966.31 id.32 Case C-202/11.


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force may be established for employment contracts in one of the languages of the European Union understood by all the parties concerned if the employee may claim free movement rights on the basis of EU law or of any other international or supranational treaty. In the event of any conflict with the Dutch version, the Dutch version of the contract will prevail.

XI EMPLOYEE REPRESENTATION

A works council is a joint committee at enterprise level designed to foster employer and employee consultation and collaboration. It comprises the head of the enterprise, assisted by a number of senior executives and an elected workers’ delegation. The works council has competence in four areas:a the right to information;b advisory competence;c decisive competence; andd managerial competence.

In terms of content, works councils are competent at the technical, economic and social levels.At companies operating within the private sector (i.e., technical operating units) and

employing at least 100 people, works councils must be set up through social elections. These elections are held every four years by the employer (head of the enterprise), who is statutorily obliged to do so. Electoral guidelines are regulated by the Act of 4 December 2007, largely along established lines.

The works council meets at least once a month at the request of the head of the enterprise or at least one-third of its members. The premises and supplies required for meetings shall be made available by the employer, and the employer must also give the representatives the necessary time off – with pay – and facilities to enable them to perform their task as well as possible. Under certain conditions, the representatives are entitled to participate in labour education programmes during working time, while retaining their pay. Workers’ representatives and non-elected candidates enjoy special protection against dismissal.

At the company level, there are three representative bodies: the works council, the committee for prevention and protection in the workplace, and the staff representatives’ delegation. At any enterprise employing at least 50 people, a committee for prevention and protection in the workplace must be set up; its main purpose is responsibility for the enterprise’s prevention and security policy.

The members of the works councils and the committees are elected by all staff members (even if they are not part of a trade union) from electoral lists presented by the three most important trade unions. If there are more than 15 employees with higher qualifications (e.g., a master’s degree) who are employed in managerial positions (known as cadres), a separate representation is provided for them in the works council. As far as the nominations for candidates are concerned, the monopoly of the traditional representative trade unions is no longer in place. Nominations can now be made by the traditional representative trade unions, the representative unions of cadres, or by 10 per cent of the cadres in the enterprise, thus allowing for independent candidates to be considered for election.


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XII DATA PROTECTION

The protection of personal data concerning employees is regulated by, among other legislation, the General Data Protection Regulation (GDPR).

The GDPR lays down certain conditions that have to be met when an employer wants to collect or process personal data. The processing of data is allowed only for legitimate purposes, such as the good execution of an employment contract, internal communications or the processing of data in connection with recruitment practices. The processing of data is also allowed with the voluntary authorisation of the employee. The employer must keep a register of processing operations, which should include the following information relating to personal data:a the purpose of processing the data;b what data is being processed and the person to whom it belongs;c who receives the data, including those outside the European Union;d how long the employer keeps the data; ande how the employer protects the data.

The employer must, in certain cases, also appoint a data protection officer, who will supervise compliance with the GDPR. There are also means for the employees to control the processed data and, if necessary, ask for incorrect data to be corrected.

Biological tests, medical examinations or other reasons for gathering medical information (orally) regarding the state of health of an employee or a candidate for a job (or of their family) may only be performed for reasons relating to the actual state of health of an employee with regard to the specific requirements of the job. Predictive genetic examinations and AIDS/HIV tests are prohibited.33 It is forbidden to gather data that could indicate racial or ethnic origin, political opinions, religious or philosophical convictions, membership of trade unions, or information concerning the sex life of citizens in general and employees alike. The processing of sensitive personal data is allowed if it is necessary for specific reasons, such as public interest, legal claims and obligations arising from labour law and social security law.34

XIII DISCONTINUING EMPLOYMENT

i Dismissal

Since 1 April 2014, all employees have the right to know the concrete reasons that have led to their dismissal. Previously, except in certain situations, only blue-collar employees and employees dismissed for serious wrongdoing enjoyed that right. Employees may also seek damages if they consider that they have been dismissed on manifestly unreasonable grounds. The grounds for termination will also often be stated in the document that employers submit to the National Employment Office. This document is communicated to the employee at the same time, to enable him or her to claim unemployment benefits.

Normally, there are no notification or consultation procedures unless there is a collective dismissal or plant closure, or if a collective bargaining agreement provides for a specific procedure. Offers of suitable alternative employment are not required.

33 Act of 28 January 2003.34 See Regulation (EU) 2016/679, Article 9 and Act of 30 July 2018, Article 9.


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The termination of an employment contract is always definitive. The only remedy is financial compensation. There is no possibility for obligatory reinstatement of the employee. Certain categories of employees are statutorily protected against dismissal, such as members and candidates of the works council, members of a trade union delegation, pregnant employees and employees on maternity or parental leave.

Employment contracts concluded for an indefinite period may only be terminated by one of the parties through prior notification of a notice period. Termination for a serious reason constitutes, in principle, the only permissible circumstance for unilateral termination without prior notice. In practice, however, it is possible for either of the parties to terminate the contract without prior notice, provided compensation is paid.

Since 1 January 2014, notice periods are the same for all employees in all sectors, subject to exceptions. It is not clear whether the employer and employee are able to agree on a different notice period from that contained in the AEC, but there is no provision in the AEC that would suggest that it is prohibited, as long the different provision is favourable to the employee.

ii Redundancies

If multiple redundancies qualify as a collective dismissal, the legislation on collective dismissals applies and possibly the legislation regarding the closure of enterprises. A collective dismissal triggers the prior information and consultation obligations towards the employees (either through the works council or, if there is none, the union delegation, or, failing this, the employees in person). The intention to proceed with collective dismissal must also be communicated to the competent administration (the director of the subregional employment office). In principle, a collective dismissal gives rise to the payment of a special monthly compensation payment in addition to any indemnity due in lieu of notice.

In the majority of cases, employers and trade union organisations establish a social plan granting additional compensation to the workers concerned and other measures with a view to reducing the consequences of collective dismissal (such as early retirement schemes).

Note that the concept of collective dismissal varies according to whether consideration is given to the employees’ right to prior information and consultation, or the employees’ right to receive compensation.

In some sectors, there will also be specific obligations for employers if the multiple redundancies do not meet the thresholds of the national legislation.

XIV TRANSFER OF BUSINESS

Under Belgian law, the consequences for employees of a transfer of an undertaking or a part thereof are governed by the Collective Labour Agreement No. 32 bis of 7 June 1985 (CLA 32 bis), which transposed into Belgian law EU Council Directive 77/178/EC of 14 February 1977 (replaced by Council Directive 2001/23/EC).

i Information and consultation prior to the transfer

Under Belgian law, an employer who intends to amend the structure of the company (merger, concentration, takeover, closure or other important structural amendments negotiated by the company) has an obligation to inform and consult the employees’ representatives (i.e., the representatives in the works council, the committee for prevention and protection in the workplace or the trade union delegation) or the employees directly.


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The relevant information should be provided and a consultation should take place before any decision is made about the planned change in structure. The employees’ representatives must be consulted, in advance, in particular with regard to the repercussions on the employment prospects for the personnel, the work organisation, and the employment policy in general.

Failure to comply with this obligation would render the employer liable to criminal sanctions (a fine of between €400 and €4,000 to be multiplied by the number of employees within the company, up to a maximum of €400,000), in accordance with Article 196 of the Penal Social Code.

ii Consequences of transferring employment contracts

Automatic transfer of contracts

In the event of a transfer within the meaning of CLA 32 bis, the rights and obligations of the transferring employer arising from the employment contracts existing on the date of transfer are automatically transferred to the new employer (transferee). In some sectors, the transfer of the contracts is quasi-automatic (i.e., it is always deemed to fall under CLA 32 bis) – for example, in the cleaning and security sectors – which makes it impossible to dismiss the employees.

The transferee automatically takes over all rights and obligations of the transferring employer, without any specific formalities having to be complied with. Only for old age, health-related or survivors’ benefits, under complementary company or inter-company schemes, does CLA 32 bis not provide for an automatic transfer.

After the date when the transfer takes effect, the transferee must respect all individual and collective employment agreements under the same conditions as the transferring employer. It follows that all essential employment conditions (including remuneration, job status, acquired seniority, place of performance and working conditions) should remain unaffected; the new employer may not modify them unilaterally after the transfer date.

Liability

After the date when the transfer takes effect, the transferee becomes solely liable for all debts resulting from the transferred employment contracts, including payment of indemnities in the event of dismissal of any of the transferred employees. For debts existing at the date of transfer (e.g., salary arrears), the transferor and the transferee will both be liable (in solidum).

Prohibition against dismissal

PrinciplesPursuant to CLA 32 bis, it is prohibited to dismiss employees on the grounds of the transfer of the undertaking within which they are employed. This prohibition applies to both the transferor and the transferee. Moreover, it concerns not only the dismissal concomitant to the transfer, but also any dismissal occurring a short time before or after the transfer.

Failure to comply with this obligation would render the employer liable to an administrative penalty consisting of a fine of between €80 and €800, multiplied by the number of employees affected, up to a limit of €80,000.

In addition to these administrative sanctions, any employee illegally dismissed by the transferor is entitled to initiate a court procedure against both the transferor and the transferee to obtain the payment of a termination indemnity or damages (the illegality of the dismissal does not have as a consequence that the dismissal would be considered null and void). Case law generally sets the amount of damages between €500 and €10,000.


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DerogationsCLA 32 bis provides for some derogations to the prohibition against dismissal. They concern, on the one hand, some categories of employees (such as those nearing retirement age and students) and, on the other hand, some reasons for dismissal. This second kind of derogation relates to dismissal for serious reasons or based on technical, economic or organisational grounds implying changes in employment within the undertaking. If an employee is dismissed without any of these reasons being present before the moment of transfer, then according to CJEU case law, he or she must still be considered as an employee of the enterprise, meaning that his or her employment contract will have to be regarded as legally transferable to the transferee. If the transfer ultimately results in a significant change in working conditions to the detriment of the employee, the employment contract will be considered to be breached by acts on the part of the employer (i.e., constructive dismissal).

These protection rules apply in the event of a transfer of enterprise by virtue of an agreement. When a transfer occurs within the framework of a legal composition procedure, CLA 32 bis provides for some exceptions to these rules. As a result of the Act of 31 January 2009 concerning the continuance of undertaking, the legal composition procedure has been replaced by a new procedure. Article 61 of this Act regulates the position of the employees in the event of a transfer of enterprise under judicial authority. The regulation applied here means that the protection rules are defined less stringently so that the transferee has more flexibility. For example, it is easier for a transferee to change the collective and individual working conditions, and he or she is no longer obliged to take over all employment contracts. However, in a judgment of 16 May 2019, the CJEU has deemed that this exception violates the provisions of the EU Directive on transfer of undertakings.35 Consequently, the Belgian legislator will have to revise the Act of 31 January 2009.

XV OUTLOOK

The Government De Croo I has defined certain priorities for its policy, other than coping with the consequences the covid-19 pandemic:a social partners have been asked to look for an adaptation of the legal framework

for teleworking;b the government is working on a plan to promote wellbeing at work (and to fight stress);c the government wants to stimulate (1) lifelong learning by creating an ‘education

account’ for every worker and (2) the use of longer periods of temporary unemployment as an opportunity to follow training and education;

d the fight against gender discrimination and unequal pay is high on the agenda; ande the specific social statute for artists should be revised.

During 2021, Belgium will have to implement some important EU Directives, such as Directive (EU) 2019/1152 on Transparent and Predictable Working Conditions, Directive (EU) 2019/1158 on Work-Life Balance and Directive (EU) 2019/1937 on the Protection for Whistle-blowers.

35 CJEU 16 May 2019, C-509/17, ECLI:EU:C:2019:424, Plessers.


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Appendix 1

ABOUT THE AUTHORS

CHRIS VAN OLMEN

Van Olmen & WynantChris Van Olmen is the founding partner of Van Olmen & Wynant, a boutique law firm focusing on employment law. He is also co-founder of L&E Global, an international alliance of leading niche employment law firms.

For more than 20 years, Chris has been lecturing on social law in the traineeship programme organised by the Brussels Bar. He also served as a member of the Brussels Bar Council and is a board member of the Association for Social Law.

Chris is past chair of the International Bar Association (IBA) Employment and Industrial Relations Law Committee and vice chair of the Global Employment Institute of the IBA.

Chris is also a member of the European Employment Lawyers Association and of the American Bar Association (labour and employment law section), and has been a speaker or moderator at numerous national and international seminars and conferences.

VAN OLMEN & WYNANT

Avenue Louise 2211050 BrusselsBelgiumTel: +32 2 644 05 11Fax: +32 2 646 38 [email protected]


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