21-03-2024

After the end of the employment contract: a practical guide

Every employer will sooner or later face an employee's departure of dismissal.

A lot has been written about the how an employment contract can end and the procedures for issuing a dismissal. But there is more to it. Employers and employees are overwhelmed by all sorts of legal, contractual and administrative obligations when settling a dismissal.

Crowe Spark Legal is happy to come to the rescue! To help out, we have compiled an overview of practical issues and obligations you should consider as an employer at the end of an employment contract.

  1. Notification to the social secretariat or the person responsible for payroll processing

An important step at the end of an employment contract is to inform the person responsible for payroll processing or the social secretariat. They can then update the employee's details in the payroll processing systems, take care of the Dimona OUT declaration and process the final payroll. Insurance and leasing agreements taken out for the employee must also be cancelled.

  1. Don't forget the social documents

At the end of the employment contract, an employer is obliged to provide several documents to the employee:

  • The final paycheck;
  • The employment certificate;
  • The final meal vouchers or eco vouchers;
  • The individual account;
  • The unemployment certificate (the so- called C4 form);
  • The tax form 281.10;
  • The holiday certificate (for white-collar workers);
  • The group insurance certificate and information on the individual continuation of the group insurance that the employee benefits from.
  1. Outplacement

Some employees are entitled to outplacement at the end of the employment contract because of their age (because they are over 45) or their accumulated seniority (because they are entitled to at least 30 weeks' notice). An outplacement pathway consists of specialised counselling services that help the employee find a new job (or start self-employment). If the employee meets the legal requirements, you are obliged to make a outplacement offer as an employer.

  1. Job application leave

During the notice period, dismissed and resigning employees are entitled to paid leave to look for a new job. Job application leave is one full day or two half-days per week during the last 26 weeks of the notice period. If the notice period lasts longer, the employee can take half a day in the period before the last 26 weeks (even a whole day if the employee attends outplacement guidance).

  1. Non-compete clause?

In any dismissal, it is best to check the employment contract. After all, some agreements may have consequences after the end of the employment relationship. For example, the granting of additional seniority, a non-compete, or a confidentiality clause.

Especially when the employee initiates the dismissal, employers have to take into account any non-compete clauses. Indeed, except for trade representatives, an employer wishing to enforce such a clause must pay an indemnity equal to 50% of the salary for the period during which the non-compete clause applies. If you prefer not to pay fixed indemnity, you will have to waive the application of the non-compete clause within 15 days of the end of the employment contract.

  1. Right of employees to keep their personal mobile phone number

From 1 January 2024, employees can reclaim the right to use their personal mobile phone number when the employment contract ends.

If an employer pays for an employee's personal mobile phone subscription (and therefore does not offer a separate business subscription and professional phone number to the employee), the employee can keep this personal number at the end of the employment contract. The request to keep the personal number must be made in writing within one month from the end of the employment contract.

  1. Data processing and privacy

Of course, at the end of an employment contract, it is necessary to block access cards, delete computer passwords and block the former employee's network or system accesses.

On the other hand, as an employer, you have to be careful about both keeping and deleting former employees' data. Some personnel records need to be kept for some time. On the other hand, employee data are personal data that may certainly not be kept longer than permitted.

Whether the dismissal is planned or unexpected, Crowe Spark Legal is there to advise and assist you.

Want to know more? Please don't hesitate to contact our specialists. We are happy to guide you through all aspects of ending the employment contract.

Despite all care taken in the preparation of this text, imperfections remain possible and the information contained herein may be superseded by recent legislative changes. The content of this newsletter is for information purposes only and cannot be considered full legal advice. Accordingly, Crowe Spark Legal and the authors of this newsletter cannot be held liable for the legal completeness of our newsletters. For specific questions or information adapted to your personal situation, you can of course contact our office.

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