In the modern global economy, the ability to protect proprietary information and client relationships is a top priority for any growing business. In Belgium, this protection is not a given; it is a highly regulated privilege that depends on strict financial and legal benchmarks. The Belgian government has updated the mandatory salary thresholds that dictate whether a company can legally restrict a departing employee from joining a competitor.
This issue is particularly pressing for international firms that may be accustomed to more flexible “at-will” or “work-for-hire” standards. In Belgium, if an employment contract does not align precisely with the new indexed salary tiers effective January 1, 2026, any restrictive covenant included in that contract could be rendered entirely null and void.
What is a restrictive covenant?
A restrictive covenant is a clause in an employment contract that limits an employee’s activities after leaving a company to protect business interests such as trade secrets, client relationships, and confidential know-how. Understanding these nuances is critical when you look to expand your global workforce in Belgium, as the local courts prioritize worker mobility unless specific legal conditions are met.
In Belgium, the most common type is the non-compete clause, which restricts former employees from joining competitors or starting rival businesses that could harm the employer. To be legally binding in Belgium, a non-compete must meet several strict criteria:
- Written form: The clause must be included in the written employment contract.
- Similar activities: It must only apply to activities that directly compete with the employer.
- Geographic scope: It is generally limited to the Belgian territory.
- Time limit: The restriction cannot exceed 12 months post-termination.
- Financial compensation: The employer must pay a gross “non-compete indemnity” equal to at least 50% of the gross salary for the duration of the restriction.
New salary thresholds for validity
In Belgium, the enforceability of a non-compete clause is tied directly to the employee’s gross annual salary. These figures are indexed annually. Ensuring accurate payroll in Belgium is essential not just for compensation, but for defining these legal rights.
Effective January 1, 2026, these new thresholds determine the legality of these covenants:
Gross Annual Salary (2026 Thresholds) | Validity of Non-Compete Clause |
Below €44,447 | Invalid. A non-compete cannot be applied at all. |
€44,447 – €88,895 | Only valid for functions specifically defined in a Collective Bargaining Agreement (CBA). |
Above €88,895 | Generally Valid, unless the specific function is excluded by a CBA. |
What This Means for Skilled Workers
For professionals in Belgium, these updated thresholds provide a high level of protection against overreaching restrictions. Workers earning below the €44,447 mark can transition to new opportunities without the fear of a non-compete barring their path. This is a hallmark of the protective employment laws in Belgium that prioritize the individual’s right to work.
Furthermore, the mandatory indemnity rule ensures that if an employer chooses to restrict a worker’s mobility, the worker is fairly compensated for that “lost opportunity”. If an employer fails to pay this indemnity or waives the clause too late (the limit is usually 15 days after termination), the worker may be freed from the restriction entirely.
What It Means for Employers
For international businesses, these updates mean that a “one-size-fits-all” contract used in the US or UK will likely fail in Belgium. For instance, while you might research how to hire in Belgium ****and find different IP transfer norms, Belgium requires a hyper-local approach to post-termination restrictions.
You must verify that your Belgian staff are earning above the required 2026 thresholds before attempting to include or enforce a post-termination restriction.
Key considerations for employers include:
- Contract audits: Existing contracts for Belgian employees should be reviewed to ensure they align with the 2026 wage thresholds.
- Budgeting for indemnities: You must account for the 50% gross indemnity payment if you intend to hold a departing employee to their non-compete.
- Local expertise: Navigating collective labor agreements (CLAs) for mid-tier salaries requires deep in-country knowledge to avoid misclassification or invalidity.
Partnering with Multiplier’s Employer of Record in Belgium simplifies this complexity. Multiplier manages the entire employment lifecycle in Belgium, ensuring that your contracts are “compliant-by-design” and updated to reflect the 2026 salary requirements.
Secure your global growth in Belgium
Staying compliant with Belgium’s evolving labor laws is a strategic necessity for any business looking to scale efficiently. Whether you are hiring full-time employees via Multiplier’s Employer of Record Service or managing independent contractors through a Contractor of Record, understanding the nuances of restrictive covenants is paramount.
By leveraging Multiplier’s global hiring infrastructure, you can hire in 150+ countries with the confidence that your IP is protected by valid, locally tailored agreements. Don’t let regulatory changes stall your momentum- let us handle the legal playbook while you focus on hiring the best talent.
FAQs
What is the minimum salary for a non-compete clause in Belgium for 2026?
From January 1, 2026, a non-compete clause is only valid if the employee's gross annual salary exceeds €44,447 at the time of termination. Clauses for employees earning less than this amount are legally unenforceable.
How do collective labor agreements affect non-compete clauses for mid-level salaries?
For employees with a gross annual salary between €44,447 and €88,895, the validity of a non-compete clause depends entirely on the applicable collective labor agreement. If the agreement does not explicitly list the employee's function as eligible for a non-compete, the clause is invalid.
Does an employer have to pay the employee to enforce a non-compete in Belgium?
Yes. In Belgium, an employer must pay a gross indemnity equal to at least 50% of the gross salary corresponding to the duration of the non-compete restriction. Failure to pay this indemnity typically renders the non-compete clause void.
What is the maximum length of a non-compete restriction in Belgium?
The maximum duration for a non-compete clause in Belgium is 12 months after the employment contract has ended. Any clause attempting to restrict a worker for a longer period is likely to be struck down in a labor court.
Can an employer waive the non-compete to avoid paying the indemnity?
Yes, an employer can waive the non-compete clause within 15 days of the termination of the employment contract. If the waiver is completed within this timeframe, the employer is no longer required to pay the indemnity, and the employee is free to work for a competitor.
How does a Multiplier EOR help with Belgian salary thresholds?
Multiplier's EOR Service is updated automatically with the latest 2026 salary thresholds and local labor regulations. We draft locally compliant contracts and handle the administration of mandatory indemnities, ensuring your business stays protected without the need for a local legal entity.
