JobatBelgian companies are again concluding plenty of new contracts of indefinite duration. The number is back to pre-corona levels. From January to August, there were even 1.7% more new employment contracts signed. This is apparent from data from Acerta among 260,000 working Belgians. Jobat.be sums up together with the HR services company the differences between a fixed-term and indefinite contract. What is the most interesting as an employee, and is there a difference in wages?
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In collaboration with Jobat.be
Latest update:
13:36
Source:
Thomas Rosseel
Acerta’s research shows that there was even a real peak in the number of open-ended contracts in August, which was no less than 26% higher compared to 2019. That job mobility for the first time this year is just as high as in 2019, shows, according to Acerta, that the labor market has recovered from the corona crisis. “The intake figures are a barometer of the labor market and of our economy,” says Nele Ronsmans, talent development expert at Acerta. “Every new employment contract is like oil that keeps the labor market running smoothly. Although it still remains an enormous challenge for our Belgian companies to find suitable people. Open vacancies are not yet a guarantee for contracts of indefinite duration. The fact that a quarter more employment contracts have been signed in the first eight months of this year than last year is therefore really good news.”
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Do you want to get started with a contract of indefinite duration? Here you will find a range of vacancies for permanent jobs
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Fixed or indefinite duration?
Anyone who likes security and stability dreams of being able to start with a contract of indefinite duration. However, job hoppers and more adventurous people can benefit from open-ended contracts. Acerta lists the main differences between fixed-term and open-ended contracts:
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• With a contract of indefinite duration, the employee can remain recruited for a long(er) period. There is no end date and that offers a long-term perspective, both for the employer and the employee. A fixed-term contract by definition contains an end date. The possibility of concluding successive fixed-term contracts is strictly regulated (limited) by law.
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• Both contracts can be terminated unilaterally by both employer and employee. During the first half of the fixed-term contract (and maximum during the first six months), the dismissal rules are the same as the rules that apply to the termination of a permanent contract (at least in the case of a first fixed-term contract). Stricter dismissal rules apply during the second half of the contract (or a successive contract) for a fixed term.
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• The employer can terminate a fixed-term contract of less than three months without compensation or notice after an illness or accident of more than seven days and insofar as the first half of the contract term has expired.
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• A fixed-term contract, with a duration of at least three months, can be terminated after six months of illness or accident upon payment of compensation equal to the salary for the remaining term of the contract, with a maximum of three months salary.
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• Your seniority continues with both contract types, since the uninterrupted service with the same employer is the connection point. An employee with a fixed-term contract usually stays in service for a shorter period of time and in that case builds up less seniority.
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• You can only insert certain clauses (competition clause, training clause) in an employment contract for an indefinite period.
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• A manifestly unreasonable dismissal can only be invoked in the case of a contract of indefinite duration. Dismissal justification is possible for both contract types.
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Can you sign your employment contract? This guide lists what to watch out for before you scribble
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And what about the salary?
“The wage and employment conditions are applied in the same way for permanent and fixed-term employment contracts,” says Inge Verdonck, legal advisor Knowledge Center at Acerta. “In both cases, it concerns employment contracts to which legislation, decisions and collective agreements apply. The wage will therefore in principle be the same, in accordance with the anticipated period of employment and pro rata the break in employment in case of part-time work. However, an employee with a fixed-term contract usually stays in service for a shorter period of time, which means that he or she can accrue fewer pay steps than a colleague who stays on post for a longer, indefinite period of time.”
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