The Employer of Record (EOR) model has become a key tool for global companies hiring talent across borders without establishing a local entity. Yet in Belgium, and particularly in Flanders – the Dutch-speaking northern region that includes Antwerp, Ghent, Bruges, Leuven and Hasselt – strict labour leasing laws mean that the EOR model cannot operate freely without local authorisation. For international employers, understanding these rules is critical to ensure compliance and avoid liability.

A complex framework for employment and labour leasing

Belgium draws a firm line between direct employment and what it classifies as temporary agency work. Any company that places workers under another firm’s direction and supervision is considered to be providing temporary agency services, an activity that requires a licence from regional authorities. In Flanders, this responsibility lies with the Flemish Department of Work and Social Economy.

This definition comprises many arrangements that in other countries fall under standard EOR models. If a company formally employs a worker but allows the client to manage their daily tasks, Belgian law views this as staff leasing. To operate legally, the EOR must therefore hold a temporary work agency licence or collaborate with a licensed partner.

Licensing and enforcement

The licensing process in Flanders is demanding and involves continuous monitoring. Authorised agencies must demonstrate financial solvency, transparent employment practices, and compliance with all labour, tax, and social security obligations. They must also maintain a financial guarantee and report employment data regularly.

Operating without a licence is a serious offence, exposing both the EOR and the client company to administrative fines and potential joint liability for unpaid wages, social contributions, or taxes. Inspections are frequent, reflecting Belgium’s commitment to safeguarding employee rights and ensuring fair competition in the labour market.

Implications for international employers

For foreign employers, the implications are clear: if workers are managed by a client company in Belgium, the arrangement is treated as agency work and subject to licensing rules. Businesses using EOR services must verify that their provider holds valid authorisation in the region or has a compliant local partner. Some global firms address this by partnering with licensed Belgian agencies; others set up their own local entity and apply for the necessary licence. Both options can be valid when properly structured and documented.

Employment standards and worker protection

Belgian employment law is protective of workers and applies equally to employees engaged under EOR or agency models. Contracts must be in writing and specify all essential terms, including pay and working hours. Employees under these arrangements are entitled to the same conditions and pay as comparable workers directly employed by the client company. Social security contributions and tax withholding are mandatory, and disputes fall under the jurisdiction of Belgian labour courts.

Modernisation without deregulation

Although Belgium has embraced digitalisation and greater flexibility in working time arrangements, its stance on temporary agency work remains cautious. The focus is on ensuring transparency and maintaining the integrity of employment relationships rather than loosening the rules. New digital reporting systems and closer oversight of intermediaries reflect this balance between innovation and protection.

Compliance as a strategic priority

For companies expanding into Belgium, regulatory awareness is essential. In Flanders, any form of staff leasing must comply with the framework for temporary agency work, and only licensed operators can legally provide such services. Employers should review contractual arrangements, confirm their EOR’s compliance status, and maintain detailed documentation covering working conditions, reporting obligations, and pay structures.

Understanding and adhering to the specific employment regulations in Flanders is fundamental for sustainable business operations. Robust governance, lawful employment structures, and accurate record-keeping remain the foundations of responsible cross-border workforce management in Belgium’s tightly regulated labour market.

At Access Financial, we not only mitigate compliance risks for recruiters, end-clients, and contractors, but also provide a comprehensive suite of services designed to remove administrative burdens. You can learn more about our services and solutions on our website: www.accessfinancial.com.