First Steps When an Employment Contract Ends

Sooner or later, every employer will have to deal with an employee’s resignation or termination. Much has been written about the many ways an employment contract can end and the procedures for terminating employment. But there’s more. When settling the terms of an employee’s departure, employers and employees are also faced with all sorts of legal, contractual, and administrative obligations. Crauwels Advocaten is happy to help! As a quick reference, we’ve put together an overview of practical matters and obligations that you, as an employer, need to keep in mind when an employment contract ends. 1. Notification to the social secretariat or the payroll administrator An important step upon the termination of an employment contract is to notify the payroll administrator or the social secretariat. They can then update the employee’s information in the payroll systems, file the Dimona OUT declaration, and process the final paycheck. Any insurance policies and lease agreements taken out for the employee must also be terminated. 2. Remember the employment documents Upon termination of the employment contract, an employer is required to provide the employee with a number of documents: - The final pay stub; - A certificate of employment; - The final meal vouchers or eco-vouchers; - The individual account statement; - The unemployment certificate (the C4 form); - Tax form 281.10; - The vacation certificate (for white-collar employees); - The group insurance certificate and information regarding the individual continuation of any group insurance policies the employee is covered under. 3. Outplacement Upon termination of their employment contract, some employees are entitled to outplacement due to their age (if they are over 45) or their accumulated seniority (if they are entitled to a notice period of at least 30 weeks). Outplacement support consists of specialized services that help the employee find a new job (or start a self-employed business). If the employee meets the legal requirements, you, as the employer, are obligated to make an outplacement offer in a timely manner. 4. Job Search Leave During the notice period, both employees who have been laid off and those who have resigned are entitled to paid time off to look for a new job. Job search leave amounts to one full day or two half-days per week during the last 26 weeks of the notice period. If the notice period is longer, the employee will be able to take half a day off during the period prior to the last 26 weeks (or even a full day if the employee is participating in outplacement counseling). 5. Non-compete clause? Whenever an employee is terminated, it’s best to review the employment contract. After all, agreements may have been made that have implications after the end of the employment relationship. Examples include additional seniority, a non-compete clause, or a confidentiality clause. Especially when the termination is initiated by the employee, you, as the employer, must take any non-compete clauses into account. An employer who wishes to enforce such a clause must, except in the case of sales representatives, pay a sum equal to 50% of the employee’s salary for the period during which the non-compete clause is in effect. If you prefer not to pay a lump-sum compensation, you must waive the application of the non-compete clause within 15 days after the end of the employment contract. 6. Employees’ Right to Retain Their Personal Cell Phone Number Effective January 1, 2024, employees may reclaim the right to use their personal cell phone number upon termination of the employment contract. If an employer pays for an employee’s personal cell phone plan (and therefore does not provide the employee with a separate business plan and phone number), the employee may retain this personal number upon the termination of the employment contract. The request to reclaim the personal number must be made in writing within one month of the end of the employment contract. 7. Data Processing and Privacy It is, of course, necessary to deactivate access cards, remove computer passwords, and block the former employee’s network or system access upon the termination of an employment contract. On the other hand, as an employer, you must exercise caution when both retaining and deleting data pertaining to former employees. Certain personnel records must be retained for a specified period by law. At the same time, employee data constitutes personal information that must not be retained for longer than permitted. Whether the termination is planned or comes as a bolt from the blue, Crauwels Advocaten is here to provide you with advice and assistance. Want to learn more? Then contact one of our specialists. We can always guide you through all aspects of the termination of an employment contract.