Belgium: Dismissed Employee is entitled to a non-compete indemnity if Employer fails to Renounce Application

A dismissed employee is entitled to a non-compete indemnity when the employer does not renounce its application in due time: In Belgian employment contracts, it is, in principle, mandatory to foresee an indemnity ‘as a compensation for imposing restrictions on the right to execute certain activities’ in the framework of a non-compete clause. Upon termination of the employment contract, the employer is no longer obliged to pay such indemnity in case he renounces its application within 15 days after the termination of the contract. The Labour Court of Brussels confirmed on 22 September 2015 that such an indemnity is also due in case the employer dismisses an employee for serious cause without renouncing the application of the clause in due time.