How to stay compliant

Employer-of-Record (EOR) in Belgium: Do You Need One?

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How to stay compliant

Employer-of-Record (EOR) in Belgium: Do You Need One?

So you want to hire someone in Belgium. Problem is, your company is located somewhere else.

If you’ve done some research, you’ve probably been told you should be using an Employer-of-Record (EOR). Why? Well, if your company isn’t located in Belgium, using an EOR can help you bypass the traditional obstacles to hiring full-time employees.

But there’s a catch: EOR solutions in Belgium are expensive—usually at least $500 per month per employee—and can take time to set up. And because you’re complying with a different set of labor laws, logistics and benefits can end up costing you lots of time and money. While they will save you time from setting up your own Belgian entity, they’re rarely cheap or fast.

The good news? There’s another way to hire remote workers in Belgium, and it doesn’t involve forking out huge amounts of money for an EOR.

The solution: Hire your teammates in Belgium as contractors. If you’re hiring remotely and your teammates have autonomy, there’s a good chance you can make compliant contractor hires. You still have to use locally-compliant contracts, but the process is a lot easier, more affordable, and faster.

We built Thera to help you make contractor hires, in 150+ countries (like Belgium). So you can hire the people you want on your team, without paying thousands for an EOR. You can get set up in a couple of clicks—and you’ll only pay $49 per contractor per month.

It’s just as easy as it sounds. No catch. Here’s what Thera looks like vs. an EOR in Belgium:

Everything you should know about using an EOR in Belgium

Are you considering hiring independent contractors abroad but are unsure about the legal and regulatory conditions in Belgium? Look no further than an Employer of Record (EOR) to help you navigate the complexities of hiring in this country. In this post, we'll break down everything you need to know about using an EOR in Belgium, including any legal or regulatory conditions specific to the country.

What is an EOR?

An EOR is a third-party company that acts as the official employer of record for your workers in a foreign country. This means that the EOR takes on all the legal and administrative responsibilities of employing workers, including payroll, taxes, and compliance with local labor laws. As the client company, you still maintain full control over the day-to-day work of your employees.

Legal and regulatory conditions in Belgium

Belgium has a complex legal and regulatory system when it comes to employment. One of the most important regulations to be aware of is the "joint and several liability" principle. This means that if your company hires an independent contractor who is later found to be misclassified as an employee, your company can be held liable for any unpaid taxes or social security contributions. This can result in significant financial penalties.

Using an EOR can help mitigate this risk by ensuring that all workers are properly classified and that all taxes and contributions are paid on time. Additionally, an EOR can help ensure compliance with other local labor laws, such as minimum wage requirements and working hour restrictions.

Hiring independent contractors vs. using an EOR

While using an EOR can be the right choice in some cases, EORs are notoriously expensive and difficult to work with. That’s why many top remote teams prefer to hire their talent abroad as independent contractors. It’s more flexible, faster to get set up, and often the better choice for async-first remote teams.

What if I accidentally misclassify my contractors?

We’ve got two pieces of good news for you. For one, if you’re hiring remotely, it’s unlikely you’ll misclassify your contractors. Many of the things that qualify people as employees, such as company equipment and set working hours, don’t typically apply to remote work.

Still, it’s helpful to have the comfort of knowing you’re not at risk for misclassification. That’s why, at Thera, we’ve launched Misclassification Assurance: so you can hire contractors abroad, worry-free. Learn more about hiring with Thera below.

Hiring contractors? Thera can save you a ton of time

If you’re hiring contractors, you’re probably spending too much time on their payroll, contracts, and tax documents. Which is why we built Thera, which saves you 90% the time you spend on contractor paperwork each month.

With Thera, you can compliantly hire your contractors in 150+ countries, onboard them in minutes, and pay them all at once (in a click). It’s global contractor payroll, finally simplified.

Sound interesting? Click here to book a demo and see the platform firsthand

Run your global workforce on autopilot with Thera

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