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A Severance Agreement outlines the terms when an employer and employee part ways in Belgium. It spells out the final payment package, including statutory notice periods, holiday pay, and any extra benefits beyond the legal minimum under Belgian labor law. This formal contract protects both sides by preventing future disputes and clarifying each party's obligations.

Under Belgian employment regulations, these agreements often cover non-compete clauses, confidentiality requirements, and mutual release provisions. They must comply with strict local rules about minimum severance calculations, which vary based on seniority and salary level. Many Belgian companies use these agreements to ensure a smooth, professional transition while managing legal risks.

Consider using a Severance Agreement when ending an employment relationship in Belgium, especially for higher-level positions or sensitive departures. These agreements become crucial during company restructuring, voluntary exits, or when terminating employees who have access to confidential information or strong client relationships.

The right time to propose a Severance Agreement is during initial termination discussions, before finalizing any departure details. This timing helps protect company interests while offering the employee clarity about their exit package. It's particularly valuable when offering benefits above the legal minimum, managing potential disputes, or when dealing with collective redundancy situations under Belgian social law.

• Severance Letter: Basic notification format outlining key terms and conditions, typically used for straightforward departures with standard packages
• Employer Separation Agreement: Comprehensive document with detailed terms, ideal for senior executives or complex departures
• Severance Pay Contract: Focuses specifically on compensation details and payment terms, commonly used in restructuring situations
• Mutual Severance Agreement: Negotiated document emphasizing consensual separation, often including mutual releases and confidentiality provisions

• HR Directors and Employment Lawyers: Draft and review Severance Agreements to ensure compliance with Belgian labor laws and company policies
• Company Management: Authorize and sign agreements, determine severance packages, and set negotiation parameters
• Departing Employees: Review, negotiate, and sign agreements, often with help from their legal counsel or union representatives
• Works Councils: Must be consulted in collective redundancy situations affecting multiple employees
• Social Law Inspectorate: Monitors compliance with Belgian employment regulations and collective bargaining agreements

• Employee Details: Gather employment history, current salary, bonuses, and benefits information
• Legal Requirements: Calculate minimum notice periods and severance pay under Belgian law based on seniority
• Additional Benefits: List any extra compensation, continued benefits, or outplacement services being offered
• Company Assets: Document all equipment, access cards, and confidential materials to be returned
• Non-Compete Terms: Define geographical scope and duration of any restrictions within legal limits
• Template Selection: Our platform generates legally-compliant Severance Agreements customized to your specific situation
• Internal Review: Have HR and department heads verify all terms before presentation

• Party Information: Full legal names, roles, and contact details of employer and employee
• Termination Details: Clear statement of employment end date and type of termination under Belgian law
• Financial Terms: Detailed breakdown of statutory and additional severance payments, including holiday pay calculation
• Benefits Settlement: Treatment of insurance, company car, stock options, and other benefits
• Confidentiality Provisions: Scope and duration of confidentiality obligations
• Release Clauses: Mutual discharge of claims and obligations as permitted by Belgian law
• Data Protection: GDPR-compliant provisions for handling personal information
• Governing Law: Explicit reference to Belgian employment law and jurisdiction

While both serve to formalize business relationships, a Severance Agreement differs significantly from a Contractor Agreement. Understanding these distinctions is crucial for Belgian employers managing different types of professional relationships.

• Employment Status: Severance Agreements end traditional employment relationships with statutory protections, while Contractor Agreements establish independent business relationships without employee benefits
• Legal Framework: Severance Agreements fall under Belgian employment law and social security regulations, whereas Contractor Agreements operate under commercial law
• Payment Structure: Severance involves final salary, notice periods, and statutory benefits; contractor payments are typically project-based or hourly without social contributions
• Timing and Duration: Severance marks the end of employment with one-time payments, while Contractor Agreements often cover ongoing or future services
• Protection Scope: Severance includes mandatory employee protections under Belgian labor law; contractor terms are more flexible and negotiable