Replacement contract: rules and conditions

Your office manager has been off sick for two weeks. The workload is piling up, colleagues are covering what they can, but it's starting to strain. You want to bring someone in temporarily to keep things running. Makes sense. But which contract do you use?

Many employers automatically reach for a fixed-term contract. That works too. But there's a specific contract designed for exactly this situation: the replacement contract. And it offers advantages a standard temporary contract doesn't.

In this article, you'll read what a replacement contract actually is, which formal requirements you need to meet, how long such a contract can run and what happens when the replaced employee comes back. No legal waffle, just the information you need as an employer.

What exactly is a replacement contract?

A replacement contract is an employment contract you sign to cover an employee whose own contract is temporarily suspended: think illness, maternity leave, parental leave, time credit or educational leave. The law (the Employment Contracts Act of 3 July 1978, article 11ter) provides for this specific contract type so that, as an employer, you can respond flexibly to temporary absences.

Worth knowing: not every suspension qualifies. You can't sign a replacement contract when the suspension is caused by economic unemployment, bad weather, a strike or a lock-out. Different rules apply to those situations.

A replacement contract can be signed for either a fixed or an indefinite term. That already surprises a lot of people. You're not required to note an end date. You can also agree that the contract runs "until the replaced employee returns." More on that below.

Replacement contract vs. fixed-term contract

This is where it gets legal. Not boring-legal, but important.

At first glance, the two contract types look alike. But there are real differences that determine which one fits your situation better.

The purpose is fundamentally different. You use a fixed-term contract when you know in advance how long you need someone. Six months of project work, three months of seasonal backup. The end date is fixed. You use a replacement contract specifically to cover an absent employee. Its length depends on the absence, and that isn't always predictable.

The termination rules differ. With a fixed-term contract, you can't simply give notice before the end date (except during the first half of the agreement, capped at six months). With a replacement contract, you can agree that it ends when the replaced colleague returns, with no notice period and no compensation. That's a major advantage when you don't know exactly when your employee will be back.

The rules on succession differ. Successive fixed-term contracts are reclassified as an indefinite-term contract more quickly. With replacement contracts, running them back to back is legally allowed, as long as you stay within the two-year limit.

When do you choose which?

A replacement contract suits you if:

• You're covering a specific employee who is temporarily absent
• You don't know exactly when that person will return
• You want to end the contract flexibly on their return

A fixed-term contract is a better fit if:

• You need someone for a project with a fixed end date
• The hire is unrelated to an absent colleague
• You have a clearly defined period in mind

Formal requirements: what goes in the contract?

Here's the key point. A replacement contract that doesn't meet the formal requirements is automatically treated as an indefinite-term contract. And that has far-reaching consequences for the notice period and compensation on termination.

According to the FPS Employment, Labour and Social Dialogue, the replacement contract must be drawn up in writing, separately for each employee, and no later than the moment the employee starts work. Not the day after. Not "we'll sort it out later." On day one.

The contract must state three things:

• The reason for the replacement. Who is being replaced, and why? For example: "replacing Sofie Janssens, absent on maternity leave." Be specific. "Temporary replacement" on its own isn't enough.

• The identity of the replaced employee. The name of the person you're replacing. This seems obvious, but it's sometimes forgotten, especially at larger companies.

• The terms of employment. These cover at least the length of the contract (fixed or indefinite) and the arrangement for termination. Are you agreeing that the contract stops on the employee's return? With or without notice? Put it in writing.

After more than 15 years in Belgian payroll, we see these formal requirements trip people up more than almost anything else. A forgotten detail, a description that's too vague, and you're stuck with an indefinite-term contract you never wanted.

Want this fully watertight? You can of course draw up contracts yourself, or you can leave the entire administration to a payroll partner like Recruit. That way you know for sure that every mandatory detail is correctly included and the contract is legally sound.

How long can a replacement contract last?

The maximum duration of a replacement contract is two years. That also applies when you sign several replacement contracts in a row, without an interruption attributable to the employee.

Since 8 May 2023, an extra rule also applies: the combined duration of successive fixed-term contracts, contracts for a clearly defined task and replacement contracts may not exceed two years in total. This is set out in article 11quater of the Employment Contracts Act and was a significant change. Previously, you could sign replacement contracts back to back without limit.

Go over those two years? The contract is then automatically reclassified as an indefinite-term contract. With all the consequences that brings for notice periods and severance pay.

There are two exceptions to the two-year limit:

• When the replacement takes place in the context of a career break or time credit. In that case, the two-year maximum doesn't apply.
• When there's an interruption between contracts that is attributable to the employee themselves (for example, because the employee resigns between two contracts). Then the clock starts over.

In practice, this means you have to keep close track of how long successive temporary contracts have been running. Many of the employers we support underestimate this. They sign a fixed-term contract, then a replacement contract, and only realise afterwards that the total duration exceeds two years.

When and how does a replacement contract end?

How a replacement contract ends depends on what you agreed in the contract. And that's exactly why those formal requirements matter so much.

When the replaced employee returns

If you've set out in the agreement that the contract ends when the replaced colleague returns, it stops automatically at that point. You can even agree that this happens with no notice period and no compensation. That's one of the big advantages of this contract type.

Note: this clause must be stated explicitly in the contract. Without a written agreement, the ordinary notice rules apply.

Early termination (for other reasons)

Want to end the replacement contract for a reason other than the replaced employee's return? Think restructuring, poor performance or economic reasons. Then the ordinary notice rules apply, just as with an indefinite-term contract. The notice periods are calculated based on the replacement's seniority, following the usual rules.

Want to know more about exactly how notice periods are calculated? Read our article on calculating notice periods.

If the replaced employee doesn't return

Sometimes the replaced employee doesn't come back. Long-term illness that turns into invalidity, dismissal during the suspension, or an employee who decides not to return to work at all. What then?

If the contract has a fixed end date, it simply expires on that date. If the contract runs "until return" and that return never happens, you have to end the agreement under the ordinary notice rules. The contract doesn't last forever, but it doesn't end by itself either.

The honest truth? This is one of those grey areas that even experienced HR managers sometimes puzzle over. When in doubt, always consult an HR expert or social secretariat to take the right steps.

Five common replacement-contract mistakes

We regularly see companies fall into the same traps. Here are the five that come up most often.

1. No written contract (or drawn up too late)

The contract must be in writing and signed before the employee starts. Not on day two, not "as soon as HR has a moment." Too late is too late, and the result is reclassification to an indefinite term.

2. The reason for the replacement is too vague

"Temporary replacement" isn't enough. State the name of the absent employee and the reason for the absence. The more specific, the better.

3. Termination terms left out

If you want the contract to end when the colleague returns without notice, that has to be there in black and white. Forget it, and you fall back on the ordinary notice rules. That can get expensive.

4. Overlooking the two-year limit

This gets forgotten especially with successive contracts. An eight-month fixed-term contract, followed by an eighteen-month replacement contract? That's 26 months. More than two years. Reclassified.

5. Forgetting the Dimona declaration or filing it late

For a replacement contract too, you need to file a Dimona (immediate employment declaration) with the NSSO (National Social Security Office). This has to happen no later than the day the employee starts. Our HR experts field questions on this daily, and it's surprising how often it gets overlooked, especially at smaller companies.

Example: replacing someone on maternity leave

Let's make it concrete. Karen, a white-collar employee at an SME with twenty staff, is going on maternity leave. That lasts fifteen weeks as standard. The employer wants to bring in a replacement.

Step by step:

1. The employer draws up a written replacement contract stating: "replacing Karen De Smet, absent on maternity leave."
2. The contract states that the agreement ends when Karen returns, with no notice period.
3. The employer files the Dimona declaration with the NSSO on time.
4. After fifteen weeks, Karen returns. The replacement's contract ends automatically, with no notice and no compensation.

Sounds simple, right? And it is, as long as you meet the formal requirements. But suppose Karen decides to take parental leave straight afterwards. Then you can extend the replacement contract or sign a new one, as long as the total duration stays under two years.

Anyone who draws up these contracts regularly knows how much time the admin eats up. Contract management, Dimona declarations, pay calculation per Joint Committee: it all piles up. At Recruit, we create contracts in under 60 seconds, including every mandatory detail. Not because it has to be complicated, but because it doesn't.

Replacement contracts among other contract types

Want a broader overview of the employment contracts that exist in Belgium? The replacement contract is just one of the options. Depending on your situation, a fixed-term contract, a temp contract through a staffing agency, or even payrolling might be a better solution.

The difference lies mainly in who carries the employer risk, how termination is handled and how much administrative burden lands on your plate. With a replacement contract, you are the employer, with all the obligations that come with it. With temporary agency work, the temp agency takes that on.

Dealing with an employee off sick? Then it's also important to know what obligations you have towards the absent employee, separate from the contract with the replacement.

In short

The replacement contract is a powerful tool for employers who want to cover an absent employee quickly and flexibly. The rules of the game are clear: put a written contract in place with the right details, respect the two-year maximum and lock down the termination terms. Do that, and you have a contract that does exactly what it should, no more and no less.

The formal requirements are strict, but not for nothing. They protect both you and the replacement. And if you're in doubt? Get help. That's not a weakness, it's smart business.

Frequently asked questions

Can I sign several replacement contracts in a row?

Yes, you can. Successive replacement contracts are legally allowed, but the total duration may not exceed two years (except for a replacement in the context of a career break or time credit). Since May 2023, combinations with fixed-term contracts also count towards that two-year limit.

What if I don't meet the formal requirements?

Then the replacement contract is reclassified as an indefinite-term contract. That means on termination you have to respect the full statutory notice period or pay severance. Not a small consequence.

Do I need to file a Dimona declaration for a replacement contract?

Yes. Just like with any other employment contract, you must file a Dimona declaration with the NSSO no later than the employee's first day. Too late? Then you risk a fine.

Can a replacement contract be agreed verbally?

No. The law requires a written agreement, no later than the moment of starting employment. A verbal arrangement isn't enough and leads to reclassification as an indefinite-term contract.

What if the replaced employee never returns?

If the contract has a fixed end date, it expires on that date. If it runs "until return" and that return doesn't happen, you must end the contract via the ordinary notice procedure. The contract doesn't end automatically.

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How Recruit helps you

Drawing up contracts that are 100% compliant with Belgian legislation? We've got it covered.

With Recruit:

• Contracts in under 60 seconds: create trial and temp contracts without the hassle
• Automatic pay calculation: correct pay under current legislation and your Joint Committee
• Dimona and social documents: we handle all declarations, you focus on your business
• 24/7 personal support: always a dedicated contact who knows your company
• No fixed monthly costs: pay only for what you use

Try Recruit or get in touch with our HR experts for tailored advice.

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The information in this article is purely informative and does not replace professional legal or accounting advice. Labour legislation changes regularly. Always consult the current legislation or contact an HR expert for advice tailored to your situation. Note: the rules may differ per Joint Committee and sector.