Monard Law

Adopted on 17 December 2024 by the National Labor Council (NLC), Collective Labor Agreement (CLA) no. 32/8 (amending CLA no. 32 bis of 7 June 1985) introduces significant changes in the management of company transfers or asset takeovers after bankruptcy.  Effective from 1 February 2025, this amendment is aimed at reinforcing the obligations to be complied with in relation to information and consultation of employees and their representatives by involving the transferee in the process. Why this change? This amendment was introduced to remedy the absence of provisions in Belgian legislation regarding the transferee's involvement in the employee consultations in the event of a transfer of undertaking and to include a few clarifications. What are the consequences for employers? From 1 February 2025, at the request of the employee representatives affected by the conventional transfer of undertaking or of the affected employees (in the absence of representatives), the transferring employers will now be required to: - Communicate to the identified transferee the content of the information and consultation communicated and held in relation to the envisaged transfer; and - Invite the identified transferee to introduce themselves to the representatives (or to the employees in the absence of representatives) during this information and consultation (or before the transfer in the absence of representatives). The amended CLA 32bis explicitly states that the transferee to be informed and invited under these new obligations must have been identified.  This will be the natural or legal person who, as a result of the transfer, acquires the capacity of employer with respect to the employees of the transferred undertaking or part of undertaking. When the request is formulated, the content of the information and consultation must be communicated even if the transferee does not respond favorably to the transferor's invitation to introduce themselves.  Lastly, the communication of the information and consultation, as well as the invitation to the transferee to introduce themselves to the employees (representatives), must be made in good time (and in any case before the transfer). To conclude These amendments reinforce employees' rights while also increasing companies' employee information and consultation obligations in the management of transfers and asset takeovers after bankruptcy.  It is essential for employers to take these new obligations into account and, where necessary, update their internal procedures to ensure compliance and preserve a harmonious social dialogue. If you have any questions on this subject, please do not hesitate to contact us.

Electronic signatures  In Belgium, an employment contract executed by using an electronic signature generated by an electronic identity card or an electronic signature that meets the same security criteria as the signature generated by the electronic identity card, is considered equivalent to an employment contract bearing a wet ink signature. However, neither the employer nor the employee may be compelled to use the electronic format when concluding an employment contract. Qualified electronic archiving   Employers must store an electronically signed employment contract with a qualified electronic archiving service. To obtain such qualification, the electronic archiving service provider must meet a list of conditions laid down in Book XII, Title 2 of the Code of Economic Law. Up to now  Up to now, no electronic archiving service provider met these conditions. If an employer opted for an electronic signature, it took the risk of having the validity of the contract challenged in the event of a dispute, notably because the archiving system used did not meet the strict requirements set out in Article 3bis of the Law on Employment Contracts of 3 July 1978. The reliability of an electronic signature depends largely on how it is stored. This allows verification of the identity of the person signing the contract, confirmation of the authenticity of their consent, and guarantees the integrity of the electronic contract (i.e., that no changes were made). From now on  With Docbyte becoming the first qualified electronic archiving service provider in Belgium, employers can electronically store signed employment contracts with a qualified electronic archiving service provider and thereby meet the requirements of Article 3bis of the Law on Employment Contracts of 3 July 1978. A reminder for employers Work rules must, amongst other mandatory items, specify the identity of the electronic archiving service provider that is responsible for storing employment contracts that were concluded by means of an electronic signature. They must also specify how the employee’s access to this electronically stored document with such service provider is guaranteed, even after termination of the employment relationship. Employers do not have to follow the ordinary procedure for modifying the work rules if they now offer a system for signing employment contracts electronically. The rules that are intended to ensure publicity of the work rules must nonetheless be complied with (displaying and keeping a copy in every work location, providing a copy to employees and notifying the changes to the social inspection services). The electronic archiving service is free of charge for employees and must be provided for at least five years after termination of the employment contract. The employee must be guaranteed access to the archived copy of the contract at all times.