The reform of dismissal rules in Belgium - Allen & …

1 The reform of dismissal rules in Belgium 2014. 2 The reform of dismissal rules in Belgium | 2014. The reform of dismissal rules in Belgium On 1 January this year, new dismissal rules came into force. Following a judgment of the Constitutional Court, the This publication provides an explanation of the most distinction between blue-collar and white-collar employees important new elements introduced by the LUS and in terms of notice periods and the first day of sick leave CLA n 109 concerning the termination of employment for blue-collar employees (carenzdag/jour de carence) had to agreements.

2 We provide you with an overview of the be eliminated. The result of this harmonisation exercise is new notice periods, and also of the wider reform the Law of 26 December 2013 concerning the introduction and modernisation of the dismissal regulations. of a unified status for blue-collar and white-collar This publication does not address the special rules employees with regard to notice periods and the first day applicable to agreements for students, servants, home of sick leave and accompanying measures (the LUS ). workers, programmes of re-employment and the execution The LUS introduces new dismissal rules both for blue- of temporary labour and temporary agency work.

3 The collar and white-collar employees. limited context of this publication similarly does not allow Subsequently, the social partners have concluded a CLA us to touch upon extraordinary situations such as, for within the National Council of Labour regarding the example, the position of an employee whose blue-collar duty to give reasons for dismissal ( CLA n 109 ). status has changed to white-collar status after 1 January 2014. The new rules will undoubtedly have a significant impact on your HR policy. This publication is based on the regulations in force as at 1 March 2014.

4 Allen & Overy LLP 2014. 3. Table of content 1. Terminology 4 9. dismissal in the event of incapacity to work 41. 2. Overview 5. Incapacity to work after notice of termination 3. Notice periods 7 has been given 41. Basic terms 7 Incapacity to work and fixed-term agreements Exceptional Sectors 9 or agreements for a clearly-defined project 42. Special terms 12 10. Trial period clause 45. Retirement 12. SUC 12 11. Outplacement 47. Temporary unemployment 12. 12. Measures designed to Possibility to deviate 13. Entry into force 13. increase employability 51.

5 4. Employment agreement commenced 13. Leave to search for new job 53. before 1 January 2014 15 14. The duty to give reasons for dismissal Basic rule: 2-step-calculation 16 and arbitrary dismissal 55. Termination of employment by the employer 16 15. Re-activation compensation 61. Resignation by the employee 21. 16. Compensatory measures 63. Exceptional Sectors 26. Special terms 26 dismissal compensation payment Special situations 27 and dismissal allowance 63. On-going trial period 27 Additional allowances at industry level 67. Deviating clause for blue-collar employees Special compensatory contribution on with less than 6 months' service 27 compensation in lieu of notice 68.

6 Collective dismissal 27 The provision for social liabilities . tax exemption 69. 5. Start of notice period 31. 17. Contact persons 71. 6. Length of service 33. 7. Compensation in lieu of notice (calculation basis) 35. 8. Fixed-term employment agreement or agreement for clearly-defined project 37. Agreement entered into before 1 January 2014 37. Agreement entered into on or after 1 January 2014 37. 4 The reform of dismissal rules in Belgium | 2014. 1. Terminology CIT: The code on Income Tax. Law on General Principles of Social Security: The law CLA: A collective labour agreement.

7 Of 29 June 1981 regarding the general principles of social security for employees. CLA n 75: Collective labour agreement n 75 of 20 December 1999 regarding the notice periods of blue-collar employees. Law on Outplacement: The law of 5 September 2001 for the improvement of the employment rate of employees. CLA n 82: Collective labour agreement n 82 of 10 July 2002. regarding outplacement for employees aged 45 and older that Law on Temporary Agency Work: The law of 24 July 1987. are being dismissed. regarding temporary labour, temporary agency work and the putting at the disposal of users of employees.

8 CLA n 109: Collective labour agreement n 109 of 12 February 2014 regarding the duty to give reasons for dismissal . Law on the Generation Pact: The law of 23 December 2005. regarding the generation pact. Closure Fund: The fund for the remuneration of dismissed employees in the event of a closure of an undertaking. LUS: The law of 26 December 2013 regarding the introduction of a unified status for blue-collar and white-collar employees Decretal Law: The decretal law of 28 December 1944 regarding with regard to notice periods and the first day of sick leave the social security of blue-collar employees.

9 And accompanying measures. EE: The employee. NEO: National Employment Office (Rijksdienst voor ER: The employer. Arbeidsvoorziening/Office national de l'emploi). Exceptional Sector: A sector in which on 31 December 2013 RD on dismissal Compensation Payment: The Royal notice periods were determined through a royal decree (on the Decree of 9 January 2014 regarding the dismissal basis of article 61 or 65/3, 2 of the Law on Employment compensation payment. Agreements) that were shorter than the notice periods that are RD on Unemployment: The Royal Decree of 25 November specified in article 70, 2 of the LUS.

10 1991 regarding unemployment regulations. FPS ELSD: The Federal Public Service for Employment, Labour Reference Period: The first half of the agreed duration of the and Social Dialogue. employment agreement for a fixed term or for a clearly-defined IPA Law: The law of 12 April 2011 regarding the amendment of project, subject to a maximum of 6 months. the law of 1 February 2011 regarding the extension of the crisis Renault Law: The law of 13 February 1998 regarding measures and the implementation of the inter-professional provisions for the improvement of employment.