How do you terminate an employee in Belgium in 2026?

Note on the 2026 cap: under the May 2026 reform confirmed by Baker McKenzie, the 52 weeks ceiling applies to employment contracts entered into from 1 July 2026. Workers hired before that date retain the older, uncapped scale. The difference matters for long-tenure senior hires.

Employee resignation notice

When an employee resigns, the statutory notice owed to the employer also follows the seniority scale, but with lower values: minimum 7 days in the first quarter, capped at 13 weeks for the most senior workers. Practically, many departures are negotiated shorter than the statutory figure, since both parties often prefer a faster handover.

Working the notice or paying it out

Employers choose whether the employee works the notice period or receives a payment in lieu (indemnity in lieu of notice). Both options are legitimate; the employment contract or a mutual agreement governs which applies. Either way, the cost is the same: the full notice period valued at current remuneration.

Under CBA No. 109, a dismissal is manifestly unreasonable when it is based on reasons unrelated to the employee's fitness or conduct, or to the operational needs of the business, and when a reasonable employer in the same position would not have dismissed. The standard is objective. Common findings of manifest unreasonableness include dismissals in retaliation for a leave request, a sick absence, or the exercise of a statutory right.

If an employee requests the reasons for dismissal in writing within two months of leaving, the employer must provide them within two months of that request. Failure to give reasons is treated as evidence supporting a manifestly unreasonable dismissal finding.

Protected categories

Certain categories carry absolute or reinforced protection, regardless of notice owed:

• Pregnancy and maternity: dismissal is prohibited from the start of pregnancy through to one month after the end of maternity leave
• Parental, caregiver, and other leave: dismissal related to leave entitlements is prohibited during and for a period after each leave type
• Workers' representatives: elected employee representatives and trade union delegates have special dismissal protection under the Law on the Protection of Representatives
• Whistleblowers: protected from retaliation under the 2023 Law implementing the EU Whistleblower Directive
• Illness: dismissal purely on grounds of illness does not constitute gross misconduct, though long-term incapacity can be a valid operational ground after due process

Any dismissal touching a protected category should be reviewed with a qualified Belgian employment-law adviser before the notice is served.

Gross misconduct (serious cause)

An employer can dismiss without notice and without paying the notice indemnity if the employee commits a "serious cause" (cause grave/dringende reden): a fault so severe that maintaining the employment relationship even temporarily becomes impossible. The dismissal must be communicated within three working days of learning the facts, and the serious cause must be stated precisely. Courts scrutinise "serious cause" dismissals closely; a failed serious-cause argument means the notice indemnity becomes due in full.

1. Confirm the grounds for dismissal

   Establish that the dismissal is based on conduct, capability, or genuine operational need. If it touches a protected category (pregnancy, leave, works' representation), get employment-law advice before proceeding.

2. Calculate the notice indemnity in full

   The indemnity equals the full notice period valued at all remuneration elements: base salary, benefits, car, variable pay. Underestimating this figure is the most common Belgium termination error.

3. Check collective-dismissal thresholds

   If other departures are planned in the same period, verify whether the rolling window and headcount thresholds are triggered. Starting the Renault Law procedure late makes individual notices legally vulnerable.

4. Issue notice or sign a termination agreement

   Serve a written notice of the calculated period, or agree a mutual-termination document with the employee. Either route is valid; the indemnity is the same either way.

5. Run the final payroll and file the closing declarations

   Process the notice indemnity, accrued holiday pay, and any other final elements with NSSO/RSZ contributions correctly applied. File the DIMONA deregistration and issue the required social documents.

The indemnity in lieu of notice covers everything in the employee's regular pay: base salary, recurring variable pay, car benefit, meal vouchers, group insurance contributions, and other contractual elements. It is not just base salary; Belgian courts include all regular benefits in the calculation, which is why severance costs for senior executives can substantially exceed the headline monthly salary figure.

For contracts predating the July 2026 reform, the uncapped notice scale continues to apply. At 17 or more years of service under the old scale, some workers may have been entitled to notice periods exceeding 52 weeks, and those entitlements are preserved.

Severance on top of notice: the CBA 109 penalty

When a dismissal is found manifestly unreasonable under CBA No. 109, the courts award an additional sum between 3 weeks and 17 weeks of pay, on top of the notice indemnity already owed. This additional amount is the Belgian equivalent of an unfair-dismissal award and it is not capped by tenure: it applies from day one.

Total exposure on a challenged dismissal: the full notice indemnity (up to 12 months of salary for post-July 2026 contracts) plus up to 17 weeks of additional pay for manifest unreasonableness.

Outplacement entitlement

Employees dismissed with a notice entitlement of at least 30 weeks are entitled to outplacement support, which the employer funds. The outplacement budget is capped at the value of 4 weeks' salary. This is a statutory obligation, not a commercial add-on; failure to offer it does not void the dismissal but creates an additional liability.

The threshold for the lower band is 10 dismissals in companies with 20 to 100 employees. Larger companies have a proportionally higher trigger. The 60 days window is a rolling period, so a pattern of individual dismissals across two months can inadvertently trigger the collective procedure.

The consultation procedure

Before the 30 days cooling-off period starts, the employer must notify the Federal Public Service Employment and the Works Council (or trade union delegation if no Works Council exists) in writing. The notification must state: the reasons for the planned restructuring, the number and categories of affected employees, the planned timeline, and the selection criteria being applied.

During the consultation period the employer must genuinely consider alternatives: redeployment, part-time arrangements, voluntary departure, and early retirement. The Works Council can request supplementary information at any stage. If the consultation is found to have been purely procedural rather than genuine, courts will treat it as if no consultation took place.

Companies with 300 or more employees

The largest employers, those with 300 or more staff, are subject to an extended consultation period and additional information obligations under the Renault Law. The exact extended period is not codified as a fixed-day figure in the statute; it is driven by the Works Council's exercise of its consultation rights, which can extend the procedure well beyond the minimum 30 days. Belgian employment counsel should be engaged before any restructuring announcement is made to the business.

Mutual agreement termination agreements must be clear that both parties are genuinely consenting. Belgian courts have overturned agreements signed under duress or where the employee was not given adequate time to consider the terms. Best practice is to give the employee at least several days to review and sign, confirm they had the opportunity to take legal advice, and avoid serving the agreement immediately following a difficult meeting.

Tax treatment of settlements: Belgian termination indemnities, including those paid under a mutual agreement, are subject to income tax and social security contributions in the same way as salary. There is no broad tax-free ceiling for termination payments as exists in some other EU countries. Severance above the statutory notice amount may benefit from a reduced effective tax rate under the "exceptional income" regime, but this is applied by the tax authorities case by case and should not be assumed.

Outplacement as part of a settlement

Where a settlement agreement covers an employee who had a notice entitlement of at least 30 weeks, the outplacement obligation still applies. It is common to build the outplacement cost into the settlement terms rather than separately arranging the service.

Non-compete clauses and settlements

Belgian non-compete clauses in employment contracts are enforceable only within specific statutory limits (duration, geography, remuneration threshold, and the payment of a compensation allowance equal to at least half the gross salary for the restricted period). If a settlement agreement contains or activates a non-compete, it must meet all of these criteria or it will be void. The employer must pay the non-compete compensation even if it later decides not to enforce the clause, unless it expressly waives the clause within a fixed period after termination.

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The split of responsibilities under EOR for Belgium terminations:

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Key sources: Federal Public Service Employment, Labour and Social Dialogue, Settling in Belgium (official government portal).