HR legal

About HR legal

Jochen Moerman
October 11, 2023

We help companies in all areas of labor and social security law in a Belgian and international context. What makes us different is that we make the bridge from HR legal to other domains such as strategy and data. For us, HR legal is the final piece, but rarely the core of the solution.

Table of contents

Broad and challenging domain

We have extensive experience in all areas of Belgian and international labor and social security law.

We can help you with issues concerning:

  • hire
  • wage policy
  • risk analysis and social passive
  • mergers and acquisitions
  • international employment
  • in- and outsourcing, including false self-employment and posting of workers
  • individual dismissal
  • collective layoffs, closures and reorganizations
  • ...

Where we really differentiate is in linking these legal areas with strategy, finance and other disciplines.

Recruitment

Hiring people is a profound decision, whether it's your first employee or one of so many new hires. Finding and keeping the right people makes or breaks any business. So your hiring policy is something you want to make legally sound from the start.

When you hire someone, you want to make an appropriate salary proposal and gain visibility into the salary cost and feasibility. Or perhaps you want to discover if interim work, freelancing, insourcing or outsourcing are possible alternatives for you?

The (employment) agreement is one of the first signs that your future employees see of your company. Therefore, you want to appear professional, give confidence and at the same time cover everything nicely and correctly.

If you are hiring your first employee, you will need employment regulations. Employment regulations can be valuable. Make sure you have a customized document. If you have been employing staff for some time, you would do well to keep your labor regulations up-to-date.

Pay Policy

The labor cost in Belgium is among the highest in the world. This leads companies to optimize the wage cost which requires creativity. Moreover, in addition to the strategic and motivational objectives, the wage and cost policy must comply with a complex regulatory framework.

From time to time, it is useful to review pay and expense policies - both from a legal and strategic perspective. Such audit can stand alone, or can be the first step toward a forward-looking and/or flexible pay policy.

High payroll costs have led to a proliferation of alternative remuneration in Belgium. There are more than 40 possible forms of financial compensation. Not to mention the multitude of expense allowances. Each with its own conditions.

Strategic pay is about doing the right things rather than doing things right. What pay policy fits your company's strategy? And how do you draw a line in it? And how do you ensure the ideal mix of financial and non-financial compensation?

Risk analysis and social passive

Businesses often underestimate the risks when everything goes wrong and you have to close a department or let go of a large part of your employee population. However, you don't want the cost of restructuring to mortgage your company's future.

Employing people involves risks that it is best to understand. The social liability is the total cost you have to consider when you have to let all your employees (from a particular department) go.

Social liability increases as your employees' seniority increases. So you would do well to budget for this risk not only in the short or very short term, but also the risk in the longer term. A (limited) turnover of employees can therefore benefit the financial health of the company.

Some companies want to proactively understand the cost of a (collective) layoff. Yet the calculation of the social liability happens mainly when there is an immanent danger of having to let go of a large part of the employee population. And then it is crucial to know the (potential) cost.

Individual and collective dismissals

Letting people go is never fun. Yet it is necessary to ensure quality, to safeguard the company culture and/or to keep the company financially healthy. You want to handle this as decisively and fairly as possible with respect for both the dismissed employee and the employees left behind.

If you have to let an employee go, you want to avoid discussion afterwards at all times and make sure that the termination fee was calculated according to the rules of the art. And of course, as an employer, you also want to be able to estimate the cost in advance.

When you terminate an employee's employment contract, you want it to be correct and reasoned in order to avoid additional costs, and at worst, a claim in court. This is all the more the case with a dismissal for cause.

When you restructure with or without layoffs, you must take into account a layoff cost. In case of collective dismissal and/or closure, you also have to comply with additional formalities and additional compensation is due. A social plan is therefore often negotiated.

Acquisitions and mergers (M&A)

Companies are more volatile and evolve faster than ever before. So mergers and acquisitions are becoming more and more common. And whether you're buying or selling, you want to do your homework right to get the best deal possible. 

When shares or assets are the subject of a sale, both the buyer and the sell perform their due diligence, identifying all risks that may be charged to the price. Labor and social security risks are also an important factor.

Are the shares being sold or are some of the assets being sold? These scenarios have different legal implications. Also, if you want to import or outsource activities, this may give rise to a transfer of business.

The buy-sell agreement will include a comprehensive list of representations and warranties to cover the risks. Be sure to have this agreement reviewed for social law issues.

International employment

Whether your company is bursting out of national borders or you are a startup, you are faced with a global employee population. Belgian, European and/or international regulations should not be an obstacle to crossing national borders and missing out on unique opportunities.

Whether you employ foreign workers in Belgium or send people from Belgium abroad for short or long periods of time, there are many aspects and formalities to take into account. We can help you with that.

When employing people in an international context, it is crucial to know what social security regime they are subject to and what working conditions (minimum wage, working hours, etc.) apply to them.

Outsourcing today is rarely limited to national borders. Even in the case of off- and near-shoring, it is best to check whether there are any implications in terms of Belgian and international labor and social security law.

In- and outsourcing

There are numerous reasons why you might want to outsource certain activities: focus on core business, flexibility, tight labor market, labor cost, ... to freelancers, for example. Or you make employees available to a client. In many cases, this is not limited to national borders. 

In a world where freelancing and entrepreneurship are so on the rise, false self-employment may be one of the biggest risks - both in terms of likelihood, and the financial implications. We can help you manage the risks.

Outsourcing activities is commonplace in our economy, including intra-group outsourcing. However, the outsourcing of activities and the provision of employees must be legally framed. Failure to do so can have serious consequences.

Importing and outsourcing, in our global economy, is rarely limited to national borders, whether you are a large corporation or a startup. Don't lose sight of international labor and social security law in the process!

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