Companies that want to hire international talent can benefit in several significant ways by hiring in Belgium. As of 2023, Belgium ranks as the 25th largest economy in the world, providing plenty of opportunities to reach new markets and grow your presence in the European Union. 

The country also has a diverse and skilled workforce that can speak multiple languages, which could help facilitate more efficient communication with international team members. 

However, it’s essential to consider Belgium’s strict labor laws to avoid penalties and other punishments. Companies that want to hire in Belgium must be aware of certain obligations, such as an employee’s right to request a career break or time credit. 

In this guide, we’ll go over everything you need to know about career breaks and time credits in Belgium, including what they are, how they work, and the most common reasons an employee can take a leave. 

What is a Career Break or Employment Gap?

Under Belgium’s employment legislation, employees are entitled to take a career break for a determined duration. During this period, the amount of working hours is reduced or suspended completely, and the employee receives a paid state allowance instead of a paycheck. 

Belgium’s labor law ensures that employees are protected against termination during their gap in employment, meaning they can return to their previous position after their leave. Generally, a career break in Belgium can last for up to one year. 

This is designed to promote a better work-life balance for employees or free up additional time for important tasks such as studying, spending time with loved ones, reconnecting with yourself, or even expanding your professional network. Overall, career breaks also allow individuals with caretaking responsibilities to continue to participate in the labor force. 

Employees can take their career break in addition to statutory paid time off, which usually equals four weeks in Belgium. However, it’s important to know that the actual time off a full-time employee is entitled to can vary between industries or sectors. 

Independent contractors are not entitled to paid career breaks. Employers with their own businesses must understand the differences in responsibilities when engaging contractors or hiring permanent employees to avoid misclassification, breaking the system, and other compliance-related penalties. 

What is a Time Credit?

A time credit is another form of voluntary work break that protects employees from termination and ensures that they can return to the same position after their leave. The major difference between a time credit and a career break is that time credits are primarily used in the private sector, while career breaks are usually taken by public-sector employees or civil servants. 

Time credits provide certain employees with the option to break the system of standard employer-employee relationships and focus on other important aspects of life. 

Belgium’s Labor and Employment Law states additional rules regarding career breaks or time credits and other important employer obligations. 

When Did Belgium Implement Career Breaks?

The Belgian government formally mandated career breaks for eligible employees in 1985. Initially, the program was designed to encourage employees to take time off to open positions for unemployed individuals and lower the unemployment rate in the country. 

Since the implementation of career breaks, the primary focus is no longer economic. The career break is now primarily for individual-oriented reasons, such as leave for medical needs, caretaking, and more. 

Policy reforms around 2002 granted individuals in the private sector the right to utilize the time credit system. 

How Do Time Credits and Career Breaks Work?

There are several rules and regulations for time credits and career breaks that must be followed by both parties. 

No Questions Asked

Employees are not required to provide a justified reason for taking the career break or using the time credit. Employees are typically entitled to take up to one year off throughout their lifetime, though some private-sector workers may be able to extend the break up to five years depending on the sector, collective bargaining agreement terms, or company level. 

Flexibility

Employees are granted flexibility regarding when they can take the leave and are not required to take it all at once. This means that employees can choose whether to take the entire career break leave, half the leave, or one-fifth of the leave at a time. Additionally, public-sector employees can choose to reduce their working hours by one-fifth, one-quarter, one-third, and half or full-time. 

There are a few ways career breaks and time credits can be tracked in Belgium. Employers must receive an official request and notify any relevant government or employment authorities. It’s also the responsibility of employers to maintain accurate records regarding the type of leave taken, the employee’s position, and the total length of leave. It’s also important to keep in mind that some types of leave have a maximum legal leave period. 

State Allowance During Career Breaks

The state allowance an employee will receive is dependent on certain factors. Belgium’s government will consider the employee’s age, take-up rate, household composition, and length of service in the workforce when determining the amount. 

For example, an employee with no children under 50 will likely receive a lower allowance than an older worker with multiple children. Additional incentives may be provided if the leave is used to take care of sick, disabled, or dependent family members, along with added premiums to pursue an education. 

Generally, the allowance is paid through Belgium’s unemployment insurance program. Employers and employees are required to make contributions to social welfare, and employers are responsible for withholding taxes and any necessary contributions for each employee on payroll. 

Responsibilities for Employers and Hiring Managers

Employers must understand that the number of employees on a time credit or break cannot exceed more than 5% of their workforce at a time, which helps prevent organizational difficulties such as decreased productivity. If 5% of an employer’s workforce is on a break, the company must develop a plan that determines a prioritized order for any future career breaks or credits. 

In some cases, an employer may deny an employee’s request for a career break or time credit leave. Factors that must be considered include the length or type of leave, the notice period given for the break, the company’s size, and potential impacts on the business caused by a worker’s absence. Employers generally cannot deny the request for a time credit if the employee provides a justified reason. 

Companies will also need to be aware of other important labor laws, such as Belgium’s 13th-month bonus, along with other costs of hiring. 

Advantages of Career Breaks

Employees and employers can benefit in several ways by participating in time credits or career breaks in Belgium. Companies will need to know the key terms and regulations for any leave entitlements to avoid potential noncompliance penalties.

Quality of Life

One of the major advantages of the career break system for employees is a better work-life balance. During this time, an employee is free to enjoy their time or spend it with family members instead of working. This can result in a significantly reduced risk of burnout, which is one of the leading causes of turnover in the workforce. 

Burnout can result in decreased employee satisfaction, lower quality of work, decreased productivity, and higher rates of stress. In contrast, employees with a better work-life balance tend to perform better and have higher levels of engagement, making leave entitlements beneficial for both employers and employees. 

Having employees with higher job satisfaction can also benefit employers by potentially increasing retention rates for skilled workers. 

Compliance

Companies that choose to uphold and grant an employee’s right to a career break in Belgium can benefit by obeying the required rules and remaining compliant. This can lead to a drastically reduced chance of noncompliance penalties or other legal punishments. 

Noncompliance penalties in Belgium can include financial penalties such as fines or back pay for any owed allowances and potential legal action from the worker. Companies may also experience significant reputational damage, which can make it more difficult to hire top Belgian talent.

Challenges of Career Breaks in Belgium

While Belgium’s career break and time credit system offers several notable benefits to employers and employees, the following key challenges must be considered. 

Loss of Wages

Employees who take their career breaks receive an allowance to cover basic costs of living, but the amount given is generally significantly lower than their normal wages or annual salary. This means that taking a career break or time credit can impose financial difficulties on workers through wage depreciation. 

Taking a career break can also impact other aspects of employment, such as a worker’s pension and what benefits are available. 

Career Development: Learn New Skills, Achieve Work-Life Balance and Explore Other Interests

While the career break in Belgium aims to promote a better work-life balance and better overall well-being, employees may face stunted career development during their absence. Employees on a break or time credit may have less opportunity to advance in their careers or receive raises when an opportunity becomes available compared to employees who work consistently. 

Additionally, employees on leave may not be able to develop important new skills needed to advance in their careers. Lengthy breaks can also potentially lead to the loss of relevant skills or job-related know-how. 

Employees who take longer breaks may also have a gap in their employment history, which can make it more difficult to progress or find a new position. When considering these factors, it's easy to understand employees who opt for a career change following their break.

Common Types of Career Breaks in Belgium

All employees who meet the minimum requirements are eligible to request a career break or time credit. In Belgium, there are a few specified types of leave that can grant a worker the right to interrupt their employment agreement. 

Full-Time Career Break

This is the longest type of leave available to employees in Belgium and allows for a complete stoppage of work for the entire duration. 

Employees who have been working a full-time job for a company for the previous year or part-time for the previous two years are eligible to request this type of break. The minimum amount of time an employee can take off for a full-time career break or time credit is usually three months. 

Part-Time Career Break

Part-time breaks allow an employee to temporarily reduce the number of working hours per week. Workers can choose to reduce their working hours by 50%, 33%, 25%, or 20% depending on their requirements. 

Part-time career breaks are the most common type of career break in Belgium as it doesn’t fully pause the employment agreement. Part-time breaks are also particularly common among older employees, as it can allow them to reduce their working hours until retirement. 

Like the full-time break, this is available to employees who meet the required length of service and can be taken for a minimum of three months. 

Thematic Leave

After the reforms in 2002 that aimed to promote a more optimal work-life balance, the government made thematic leave available to workers. There are a few different types of thematic leave that can be taken by eligible employees. This form of leave entitlement is generally used for more specific reasons.

Parental Leave

New parents in Belgium can take a career break to spend time or care for a newborn child. This is considered a justified reason for taking leave, meaning employers generally cannot deny a request for this career break or time credit. Additionally, it’s available for employees in both the public and private sectors. 

Certain requirements must be met by the employee for a successful request. For example, employees are eligible for this type of leave if they apply in the period from the child’s birth up until their 12th birthday. Employees who have children with a physical or mental disability are given an extended limitation period and can opt to take leave until their child’s 21st birthday. Workers with adopted children can also choose to take a parental career break.

Parents are eligible to take full-time, part-time, 1/5th, or 1/10th leave and can switch the leave scheme if circumstances change. 

Palliative Care Leave

Alternatively, eligible employees who want a career break can take it for palliative care. Palliative care is when the worker must care for another individual with a terminal or serious illness. In this case, the person does not need to be a direct family member. 

Workers can choose to take a palliative career break and fully suspend their working arrangements for up to one month for every patient. Additionally, workers can choose to reduce working hours by 20% for each dependent. Part-time employees are also eligible for palliative leave if they average a certain amount of working hours per week. Workers have the option to extend this career break twice by one month if additional care is required. 

Leave for Medical Assistance 

Employees also have the right to request a career break for medical assistance. In contrast to end-of-life leave, this type of leave can only be taken to care for a sick or terminal family member. Employees are given the option to take a full-time break, a half-time break, or a 4/5th break. In these instances, a family member is considered a blood relative to the second degree or other significant relationships, such as a spouse. 

Workers who choose to take this form of career break must submit documentation such as a certificate from the doctor treating the family member. Workers in Belgium are also eligible to take paid sick leave for up to 30 days. 

How Can an Employer of Record (EOR) Help?

An employer of record (EOR) will act as your local entity in Belgium and can help you compliantly hire top talent in various industries. Employers of record make the entire hiring process much more efficient and handle all requirements, such as managing your payroll, enrolling employees in benefits packages, and more.

Employers of record also have extensive expertise about local labor laws in Belgium, including time credits and career breaks. Your EOR of choice can help you navigate complicated regulations and ensure that all eligible employees receive career breaks and other mandatory time off. 

Employers of record can also give you access to a much wider talent pool. With all the complicated requirements taken care of, you can invest additional time and energy into finding the right candidate for the job. 

Why Borderless?

Borderless is an employer of record that offers a comprehensive range of services, making it easier to hire internationally. We also have an intuitive all-in-one platform that helps manage and pay workers from around the world. 

Speak with our team today to see how we can help you hire in Belgium and understand time credits and career break requirements. 

Disclaimer: Borderless does not provide legal services or legal advice to anyone. This includes customers, contractors, employees, partners, and the general public. We are not lawyers or paralegals. Please read our full disclaimer here.