Temporary Employment Agency License: Solution for EOR in Belgium?

EOR license (Business Belgium)

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EOR | News | Payroll

23/07/2026

For many international companies, an Employer of Record (EOR) offers a practical way to hire employees in a country without immediately establishing a local entity. The EOR usually becomes the formal employer, manages payroll and employment administration, and supports the client with local compliance.

However, the EOR model requires particular care in Belgium. Getting a temporary employment agency License can become interesting in one of the four regions.

Key compliance requirements for employee availability in Belgium

Important: This article provides general information and is not a substitute for legal advice on a specific employment structure.

Belgian employment law places strict limits on making employees available to another company while transferring part of the employer’s authority to that company. Under the Belgian Act of 24 July 1987, this type of arrangement is generally prohibited unless it falls within a legally permitted exception, such as temporary agency work. Temporary employment agencies must also obtain prior authorisation from the relevant Region or Community.

This means that an EOR operating in Belgium may need to hold a recognised temporary employment agency licence. For international employers, checking this point should be an essential part of the provider selection and compliance process.

Legal Framework Employer of Record (EOR)

What is an Employer of Record?

An Employer of Record is a third-party organisation that formally employs a worker on behalf of another company.
The EOR typically manages responsibilities such as:
  • Preparing and signing the employment contract
  • Registering the employee with the relevant authorities
  • Processing monthly payroll
  • Withholding and reporting payroll taxes
  • Managing social security obligations
  • Providing employment administration
  • Supporting employee onboarding and offboarding
The client company usually remains responsible for the employee’s day-to-day work. It may decide the employee’s role, assign tasks, manage performance, organise working time and direct the employee’s activities.
This creates a three-party relationship:
  • Employee: Performs work for the client company
  • EOR: Acts as the formal employer and manages employment administration
  • Client company: Directs the employee’s daily work and benefits from the employee’s services

The legal classification therefore depends on how the arrangement operates in practice.

Why is the EOR model more complex in Belgium?

Business Belgium - Brussels

Belgian law distinguishes between providing an independent service and making employees available to another company.

In a genuine service agreement, a contractor or service provider normally retains authority over its employees. The client may define the desired result, but it should not take over the employer’s authority over the individuals performing the work.
By contrast, employee lending or the hiring out of workers can arise when:
  • One company employs the worker.
  • The worker performs services for another company.
  • The second company exercises part of the authority normally held by the employer.
The Federal Public Service Employment describes temporary agency work as a situation in which a worker is employed by a temporary employment agency and made available to a user company. In Belgium, agencies carrying out this activity are subject to prior authorisation.
This distinction is important because a typical EOR arrangement may involve the client company exercising significant operational authority over the employee. For example, the client may:
  • Select the employee
  • Determine the employee’s responsibilities
  • Set working hours and workplace arrangements
  • Manage the employee’s performance
  • Approve leave
  • Give day-to-day instructions
  • Decide whether the employment relationship should continue
If the EOR remains the contractual employer while the client exercises employer authority, the arrangement may be viewed as the provision of workers rather than ordinary payroll or HR outsourcing.

What does the Temporary Employment Act regulate?

The Belgian Act of 24 July 1987 regulates temporary work, temporary agency work and the hiring out of workers for the benefit of users. The Act is designed to prevent companies from avoiding employment responsibilities or regulatory obligations through an informal staffing structure.
As a general principle, employees may not simply be made available to another company while that company exercises the employer’s authority.
There are limited exceptions, including:
  • Temporary agency work performed through an authorised agency
  • Certain forms of employee lending between regular employers, subject to strict conditions
  • Specific arrangements recognised under Belgian or regional legislation
  • Certain services where the original employer retains the relevant authority
The permitted exceptions are narrowly defined. Companies should not assume that an EOR arrangement is compliant simply because the EOR processes payroll or signs the employment contract.
The actual working relationship and distribution of authority matter.

Coast FlandersWhat did Flanders clarify about EOR arrangements?

In September 2025, the Flemish Government clarified its position on EOR services in the Flemish Region. The position was reported as requiring entities that provide EOR services in Flanders to hold a valid license as a temporary employment agency.
The Flemish position reflects the existing legal distinction between:
  • A service provider that performs payroll or HR services independently
  • A temporary employment agency that employs workers and makes them available to a user company
The Flemish rules for recognised temporary employment agencies include requirements such as:
  • Holding a license as a temporary employment agency
  • Meeting the applicable legal conditions for temporary agency work
  • Having no outstanding social security or tax debts
  • Providing accurate information to workers and clients
  • Using the license number in external communications
  • Complying with the rules governing the three-party relationship
  • Not working with unrecognised temporary employment agencies

The Flemish authorities also state that third parties cannot circumvent the licensing requirement by carrying out activities that form an integral part of temporary agency work without holding their own license.

For companies considering an EOR in Flanders, the key due‑diligence question is whether the provider holds the required regional recognition or licence to legally offer this service.

Does the Flemish position apply throughout Belgium?

Belgium’s employment framework is divided between federal and regional responsibilities.
The federal Act of 24 July 1987 establishes the main rules on temporary work and the hiring out of employees. The Regions and Communities are responsible for important aspects of authorisation and recognition procedures. These include:
  • The Flemish Region
  • The Walloon Region
  • The Brussels-Capital Region
  • The German-speaking Community
The Federal Public Service Employment confirms that the conditions and procedures for authorisation fall within the competence of the relevant Region or Community.
The Flemish clarification is therefore particularly relevant for employees working in Flanders. It should not automatically be treated as a complete answer for every Belgian employment situation.
Employers with employees in Wallonia, Brussels or the German-speaking Community should assess the applicable regional requirements separately. The legal position may develop over time, but companies should not rely on an assumption that another Region will necessarily apply the same approach without checking.

Compliance considerations when engaging an EOR in Belgium

BelgiumFor international companies, using an Employer of Record can simplify hiring and employment administration in Belgium, but the model must be assessed carefully. The key question is not only who signs the employment contract or processes payroll, but also who exercises employer authority in practice. Before selecting an EOR, companies should verify whether the provider holds the required recognition or license in the relevant Belgian Region or Community, and whether the contractual and operational arrangements comply with Belgian rules on the hiring out of workers. A structured legal and compliance review can help employers reduce risk and establish a compliant foundation for their Belgian activities.

BusinessBelgium supports two key audiences:

  • Foreign employers looking to hire talent in Belgium with full compliance. We analyse the best employment setup for your situation and guide you through every step.
  • EOR providers seeking a Belgian license. We connect you with a trusted partner who can support your application smoothly and reliably.

Ready to move forward? Contact us by completing the form below at the bottom of tis page and we will take it from there.

 

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