Executive compensation and employee benefits—Belgium—Q&A guide

The following Share Incentives practice note provides comprehensive and up to date legal information covering:

  • Executive compensation and employee benefits—Belgium—Q&A guide
  • 1. Provide an overview of the primary sources of law, regulation and practice that govern or affect executive compensation arrangements or employee benefits.
  • 2. What are the primary government agencies or other entities responsible for enforcing these rules?
  • 3. Are any types of compensation or benefits generally subject to specific corporate governance requirements or approval by shareholders or government agencies? What is the general process for obtaining approval?
  • 4. Under what circumstances does the establishment or change of an executive compensation or benefit arrangement generally require consultation with a union, works council or similar body?
  • 5. Are any types of compensation or benefit arrangements prohibited either generally or with respect to senior management?
  • 6. What rules apply to compensation and benefits of non-executive directors?
  • 7. Must any aspects of an executive’s compensation be publicly disclosed or disclosed to the government? How?
  • 8. Are employment agreements required or prevalent? If so, what provisions are common? Are any terms prohibited or unenforceable?
  • 9. What are the prevalent types and structures of incentive compensation? Do they vary by level or type of organisation?
  • More...

Executive compensation and employee benefits—Belgium—Q&A guide

This Practice Note contains a jurisdiction-specific Q&A guide to executive compensation and employee benefits in Belgium published as part of the Lexology Getting the Deal Through series by Law Business Research (published: November 2020).

Authors: Claeys & Engels—Chris Engels; Florence Sine

1. Provide an overview of the primary sources of law, regulation and practice that govern or affect executive compensation arrangements or employee benefits.

Belgian labour law encompasses a multitude of legislation (eg, the Employment Contracts Act of 3 July 1978, the Act of 12 April 1965 on the protection of remuneration and the Act of 25 April 2014 on the status and supervision of credit institutions) regulating the various aspects of compensation and benefits. This legislation is embodied mainly in acts, royal decrees and collective bargaining agreements declared generally binding and thus applicable to the entire private sector.

2. What are the primary government agencies or other entities responsible for enforcing these rules?

The labour courts are empowered to rule on individual grievances.

In addition, the observance of provisions in the field of labour law is verified by the Social Inspection Department. The Social Inspection Department can impose administrative fines on anyone not respecting the applicable legislation. The Financial Services and Markets Authority and the Belgian National Bank are also in charge of the supervision of credit institutions. Both institutions have the power to

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