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Severance Letter Template for Belgium

A Belgian Severance Letter is a formal document that outlines the terms and conditions of an employee's employment termination under Belgian law. This document adheres to the stringent requirements of Belgian employment legislation, including the Act of 3 July 1978 on Employment Contracts and the Status of Unified Employment Law of 2014. It details the notice period or payment in lieu, severance calculations, final salary arrangements, benefit terminations, and any additional obligations or entitlements. The letter must comply with specific Belgian legal requirements regarding notice periods, mandatory outplacement services where applicable, and proper calculation of termination indemnities.

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What is a Severance Letter?

The Severance Letter is a crucial document in Belgian employment law, used when terminating an employment relationship either with notice or immediate effect with payment in lieu of notice. It serves as an official record of the termination terms and ensures compliance with Belgian employment legislation, including the Act on Employment Contracts and various collective bargaining agreements. The document is essential for properly documenting the termination process, outlining financial entitlements, and ensuring all legal obligations are met. It typically includes specific calculations for severance pay based on seniority, details about notice periods, treatment of benefits, and any additional obligations such as outplacement services. The Severance Letter must be carefully drafted to avoid potential legal challenges and ensure all aspects of Belgian employment termination law are properly addressed.

What sections should be included in a Severance Letter?

1. Employer Details: Full legal name and address of the employing company

2. Employee Details: Full name and address of the employee

3. Date: Date of the letter issuance

4. Subject Line: Clear indication that this is a termination/severance letter

5. Confirmation of Termination: Clear statement of employment termination and effective date

6. Notice Period: Details of notice period or payment in lieu of notice

7. Severance Payment: Breakdown of severance payment calculation and total amount

8. Final Salary and Benefits: Information about final salary payment and treatment of benefits

9. Company Property: Requirements for returning company property

10. Closing Statement: Formal closing including reference to enclosed documents and contact information for queries

11. Signature Block: Space for employer's authorized representative signature and title

What sections are optional to include in a Severance Letter?

1. Garden Leave: Include when employee is being placed on garden leave during notice period

2. Non-Compete Reminder: Include when employee is bound by existing non-compete clauses

3. Outplacement Services: Include when company is offering outplacement support (mandatory for certain categories under Belgian law)

4. Settlement Agreement Reference: Include when termination is part of a mutual agreement or settlement

5. Performance Bonus/Commission: Include when addressing outstanding variable compensation

6. Share Options/LTIP: Include when employee participates in share schemes or long-term incentive plans

What schedules should be included in a Severance Letter?

1. Severance Calculation Sheet: Detailed breakdown of severance pay calculation including years of service, salary components, and applicable multipliers

2. Benefits Summary: List of benefits and their treatment post-termination

3. Final Settlement Statement: Detailed breakdown of all final payments including salary, holiday pay, and other entitlements

4. Property Return Checklist: List of company property to be returned

5. Outplacement Services Details: Information about outplacement support if applicable

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok成人版 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

Belgium

Document Type

Severance Agreement

Cost

Free to use

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