What Severance Pay Rules Must Employers Follow in Belgium?

Which Employees Qualify for Severance Pay?

• Employees with open-ended (permanent) contracts who are dismissed without serious cause.
• White-collar and blue-collar workers alike, though calculation methods differ slightly.
• Employees whose employer terminates the contract without notice.
• Workers affected by collective redundancies or company restructuring, as defined under Belgian law.
• Employees dismissed for economic or organizational reasons, provided the dismissal is not for gross misconduct.

Note: Employees who resign voluntarily or are dismissed for serious misconduct are not entitled to severance pay.

What Are the Legal Timelines for Paying Severance?

When an employer terminates a contract without notice, the severance payment must be made at the time of termination or within a reasonable timeframe, typically aligned with the company’s next payroll cycle. The payment represents the salary and related benefits the employee would have earned during their notice period, including bonuses, meal vouchers, and other contractual entitlements.

In cases of collective dismissal, payment terms and timing may be set by collective agreements or restructuring plans approved by authorities. Regardless of the situation, the employer must ensure that all due amounts are paid promptly and supported by proper documentation to avoid legal claims.

What Penalties Apply if Severance Is Not Paid Correctly?

Failure to pay severance in accordance with Belgian law can lead to financial and legal consequences. Employers face strict enforcement under the Employment Contracts Act and can be held liable for damages or reinstatement claims. Key penalties include:

• Court-ordered payment of severance plus interest for delayed compensation.
• Administrative fines for non-compliance with labor laws.
• Legal costs if the employee files a claim before the labor tribunal.
• Reputational damage, particularly for multinational employers or firms under restructuring.

Belgium’s labor courts are known for strongly upholding employee rights, so compliance with severance rules is essential.

Does Outsourcing Employment via an EOR Change Severance Liability?

Yes. When hiring in Belgium through an Employer of Record (EOR), the EOR becomes the legal employer of the worker. This means the EOR is responsible for managing all employment obligations, including severance pay, notice periods, and termination compliance.

For client companies, this setup removes the direct legal burden of handling Belgian labor law requirements. The EOR ensures that all severance calculations, documentation, and payments follow national and sectoral regulations, reducing risk and ensuring a compliant offboarding process.

Be 100% Compliant in Offering Severance with Playroll

Terminating employment in Belgium involves navigating detailed notice rules, benefit inclusions, and strict legal timelines. Getting any part of this wrong can result in costly disputes or penalties. Playroll helps you avoid that.

With Playroll, you can trust that every severance calculation, payment, and document complies fully with Belgian law. Our platform handles everything from correct salary equivalents to benefit inclusions, ensuring employees are paid exactly what they’re owed, on time.

Whether you’re managing your own Belgian workforce or hiring through our EOR, Playroll keeps your business compliant, transparent, and protected. Partner with Playroll to simplify global employment and maintain peace of mind when managing terminations in Belgium.