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1. Mutual Termination: more attractive? the ‘Trampoline effect’
1.1 Principle
Unlike a dismissal, which is a unilateral act, a termination by mutual consent is based on the agreement of both employer and employee. It stems from the general contractual principle that parties may end a contract through their mutual will.
This method is widely used because it offers flexibility, confidentiality and the possibility of tailoring arrangements to the specific circumstances of the parties.
The termination agreement can be concluded at any time, including during a notice period or during a suspension of performance (for example, during sickness absence). It may take immediate effect or provide for a future termination date.
For a mutual termination to be valid, both parties must express a clear and informed intention to end the employment relationship. The termination date is an essential element of the agreement. If the date is missing or cannot be determined, the agreement may be invalid.
Although no specific formalities apply and the agreement may theoretically be oral, a written document is strongly recommended. A robust termination agreement should include:
- Identification of the employer and employee;
- A clear termination date;
- Confirmation that consent is given freely and knowingly;
- Details of any financial arrangements;
- Practical provisions regarding company property, confidentiality, non-compete obligations, task handover and final settlement of claims.
A mutual termination does not automatically create an entitlement to payment in lieu of notice. However, parties may agree on a contractual compensation payment. Such compensation is generally treated as remuneration for employment-law, tax and social-security purposes.
1.2 Key Risks and Practical Considerations
The main legal risk associated with a mutual termination concerns challenges to the validity of the employee’s consent.
Employees frequently attempt to invalidate termination agreements by alleging defects of consent.
Belgian courts generally uphold mutual termination agreements, but they will annul them where consent was not freely given. For example, excessive pressure, misleading information or emotionally charged circumstances may justify a finding that the employee’s consent was defective.
It is important to obtain an explicit written confirmation from the employee stating that he or she wishes to terminate the employment contract by mutual consent.
1.3 Financial Consequences
Social Security Contributions
Where the employer pays contractual compensation in connection with a mutual termination, that amount is generally subject to Belgian social-security contributions. Additional employer contributions to the Closure Fund may also apply when statutory conditions are met.
Tax Treatment
From a tax perspective, compensation paid upon mutual termination is treated in the same manner as a notice indemnity. It constitutes taxable employment income and is subject to withholding tax.
Notice indemnities benefit from a specific tax regime aimed at mitigating the effects of progressive taxation, and are generally taxed separately at the average tax rate of the last year in which the employee has received taxable professional income for a full twelve-month period.
Requalification Risks
The most significant financial risk is not taxation or social security, but the possibility that the agreement is later declared invalid.
If a defect of consent is established, the termination may be requalification as a unilateral dismissal by the employer, in which case a statutory notice indemnity would become due.
1.4 Impact on Unemployment Benefits – Trampoline effect
Traditional Position
Under Belgian unemployment rules, employees who become unemployed due to circumstances attributable to their own may be excluded from unemployment benefits.
Historically, a termination by mutual consent has often been viewed by the Belgian unemployment authorities (RVA/ONEM) as a form of voluntary departure from employment.
Such qualification can result in exclusion from unemployment benefits for a period ranging from 4 to 52 weeks, depending on the circumstances.
However, each case is assessed individually. Exclusion may be avoided where:
- The initiative effectively came from the employer;
- The position was no longer considered suitable;
- Specific factual circumstances justify an exception.
As a result, many employees have traditionally been reluctant to accept a mutual termination where no alternative employment was already secured.
1.5 New Since 1 March 2026: The “Right to Restart”
A major development occurred on 1 March 2026 with the introduction of the right to restart (“recht op doorstart”/ “droit au rebond”).
Under this mechanism, certain employees who would otherwise be excluded from unemployment benefits after voluntarily leaving employment can obtain immediate, but limited access to unemployment benefits, provided that strict conditions are met.
Key conditions include:
- The work departure occurred after 28 February 2026;
- The employee has at least approximately ten years of professional career (3,120 working or equivalent days);
- The employee has never previously used the right;
- A written application is filed by the employee within 30 days after notification of the exclusion decision.
Eligible employees may receive unemployment benefits for up to six months. In specific situations involving training for shortage occupations, this period can be extended by an additional six months.
1.6 Practical Impact of the New Regime
The new right to restart may make mutual terminations more attractive because employees face less uncertainty regarding immediate income support.
It may facilitate solutions in difficult employment situations and encourage professional reorientation.
Nevertheless, caution remains necessary. For employers, a carefully documented and legally sound process remains essential to avoid challenges and requalification risks. For employees, the right to restart is not always advantageous. While it provides immediate short-term access to benefits, its duration is more limited than under the ordinary unemployment regime (which can, in principle, last up to two years).
Moreover, the right can only be used once and is irreversible.
1.7 Conclusion
Termination by mutual consent remains a valuable and flexible tool under Belgian employment law. However, its validity depends heavily on the existence of a clear, free and informed agreement between employer and employee. The introduction of the right to restart in 2026 increases the attractiveness of this termination method in certain situations, but it also highlights the importance of careful planning, transparent communication and robust documentation to avoid disputes and unexpected financial consequences.
For further information, we refer to the article by Jeroen Verbeken, Antoine Grégoire and Stefan Nerinckx published in Sociale Wegwijzer/Indicateur Social, no. 6, June 2026, titled “Beëindiging van de arbeids overeenkomst met wederzijdse toestemming: aantrekkelijker anno 2026?” / “Rupture du contrat de travail par consentement mutuel : plus attrayante en 2026?”.
2. Introduction of a maximum notice period
As of 1 June 2026, Belgium has implemented substantial reforms to its notice period regime for employment terminations.
Under the current framework, notice periods depend on various factors, such as (sectoral) seniority, employment start date, and whether termination is initiated by the employer or employee.
Importantly, while employee resignations are limited to a maximum notice period of 13 weeks, no such cap applied to employer-initiated dismissals, often resulting in lengthy and costly notice periods for long-serving employees.
The new regime introduces a key change: for employment contracts concluded on or after 1 June 2026, notice periods in the event of dismissal by the employer are capped at 52 weeks, a maximum reached after 17 years of service. Further seniority will not increase the notice period beyond this limit.
As this reform only applies to new contracts concluded as from 1 June 2026, the first effects will be noticeable in 2043.
3. Probationary Period Returns in Practice from 1 August 2026
The Belgian federal government has introduced new legislation aimed at increasing flexibility during the initial stage of employment relationships. For contracts starting on or after 1 August 2026, both employers and employees will be able to terminate a new employment contract during the first six months of employment by giving only one week’s notice.
The measure is intended to lower hiring barriers for employers while providing greater flexibility at the start of an employment relationship. The new rule applies automatically and does not need to be expressly included in the employment contract.
The reform simplifies the current notice period system, which varies according to the employee’s seniority and depending on whether the employer or employee terminates the contract. Under the new regime, a uniform one-week notice period will apply during the first six months of employment, regardless of which party ends the employment relationship.
The change also affects counter-notice periods (where an employee resigns after receiving notice of termination from the employer): if the employee has less than six months’ service, the counter-notice period will likewise be limited to one week.
Although the legislation does not formally reintroduce the term “probationary period”, it effectively restores a similar concept by making it easier for both parties to end the employment relationship during the first six months.
The new rules were published in the Belgian Official Gazette and will apply only to employment contracts commencing on or after 1 August 2026. Employment contracts that started before that date remain subject to the existing notice period rules.
| Seniority | Dismissal: employment start date as from 01/08/2026 | Dismissal: employment start date on or after 01/08/2026 | Resignation or counter-notice: employment start date as from 01/08/2026 | Resignation or counter-notice: employment start date on or after 01/08/2026 |
| Less than 3 months | 1 week | 1 week | 1 week | 1 week |
| From 3 months to less than 4 months | 3 weeks | 1 week | 2 weeks | 1 week |
| From 4 months to less than 5 months | 4 weeks | 1 week | 2 weeks | 1 week |
| From 5 months to less than 6 months | 5 weeks | 1 week | 2 weeks | 1 week |
| From 6 months to less than 9 months | 6 weeks | 6 weeks | 3 weeks | 3 weeks |
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