Belgian Law in 2025: Key Regulatory Changes for Business
The New Frontier of Director Liability
A new Book 6 of the Belgian Civil Code, which took effect on January 1, 2025, has introduced a significant shift in corporate liability by abolishing the principle of "quasi-immunity" for company directors. Previously, a company's contractual partners were generally shielded from directly suing a director for a contractual breach committed by the company. Legal claims had to be directed at the company itself, and directors were largely protected from personal liability for their actions in the execution of corporate contracts.
The new legal regime fundamentally changes this dynamic. It now grants a contracting party a direct, extracontractual claim against a director if the director’s fault caused the damage, even if that fault was committed in the framework of a contract. For example, if a director knowingly approves the delivery of a defective product, the customer can now pursue personal liability claims against that director in addition to a claim against the company.
While directors still benefit from liability caps—which range from €125,000 to €12 million depending on the company's size—these protections are not absolute and do not apply in cases of intentional misconduct. To mitigate this new risk, companies must take proactive steps, including revising new and existing contracts to explicitly limit or exclude the non-contractual liability of their directors. Additionally, companies should review and potentially increase their directors and officers (D&O) insurance coverage and strengthen internal governance through clear decision-making processes and meticulous documentation to demonstrate due diligence.
Significant Amendments to Belgian Employment Law
The new Belgian government agreement, effective from January 2025, marks a substantial overhaul of labor law, introducing several key changes that will impact employers and employees alike. These measures aim to increase flexibility for employers while also tightening conditions for unemployment and early retirement.
Reintroduction of Probation Periods: Employers will be allowed to terminate employment with a one-week notice period during the first six months. This is a significant change from the previous system and provides greater flexibility for employers in the initial phase of an employment relationship.
Cap on Severance Pay: For new hires, severance pay will be capped at 52 weeks. While its immediate effect will be limited, as it will only become relevant after 17 years of seniority, it is a clear long-term signal of the government's intention to control labor costs.
Flexi-Jobs Expansion: The "flexi-job" system, which provides a tax-attractive system for part-time work, will be expanded to all sectors unless a specific sector opts out. The maximum tax-free annual income for flexi-jobs will also be increased to €18,000, and the minimum hourly wage will rise to €21.
Increased Employer Responsibility for Sick Employees: Employers will now be required to contribute 30% of the sickness allowance during the first two months following the initial 30 days of an employee's incapacity, making long-term absences more expensive for companies.
Beyond these changes, the government has also identified imbalances in B2B purchase agreements as a priority concern and is expected to ban certain unfair contract terms in the hotel, restaurant, and catering sectors.
Additional Amendments in Employment Law
The new government agreement also includes additional changes to labor law. The maximum number of annual voluntary overtime hours will be increased to 360 for all workers, with up to 450 hours allowed in the hotel, restaurant, and bar (HORECA) sector. The government also intends to introduce "fit notes" from treating physicians, which will clarify an employee's remaining work capacities rather than simply providing a sick note. The minimum age for student work will be set at 15 years old, and the maximum limit for student work under the fiscally beneficial system will be permanently increased to 650 hours per year.