Introduction
What is an EOR?
Why rely on an EOR?
Impact of Belgian Employee Lending Act
What are the options for EORs?
EORs act as service providers
Consequences of violating the Employee Lending Act
Introduction
Since the covid-19 pandemic, hybrid working models have become the "new normal". Although this development has undoubtedly triggered challenges for employers, it has also created opportunities. The pool of candidates for filling an open vacancy has expanded substantially as nothing impedes an employer from "crossing the border" to find the most suitable employee-candidate and vice versa.
Besides the social security and tax consequences that such a setup might trigger, foreign employers are suddenly also faced with employment legislation that they are not familiar with. To overcome this situation, foreign employers are increasingly relying on the services of an employer of record (EOR).
While doing so is legally permitted in many countries, EORs active in Belgium as well as the employers relying on the services of such an EOR should be aware of the restrictions under the Belgian Employee Lending Act.(1)
What is an EOR?
An EOR is a concept that is not legally defined in Belgium. In general, an EOR is understood as a company that takes up the role of the legal employer on behalf of a client. The EOR ensures compliance with any and all relevant employment, immigration, tax and social security obligations on the client's behalf.
An individual enters an employment...
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