On top of this monthly temporary unemployment benefit, the employee will receive a supplement of 5.63 EUR a day. Except in specific cases, the public sector (including the majority of the public companies), does not fall under the scope of this act. For workers from suppliers of companies affected by an imposed closure, to the extent that this renders them unable to work at all. NOTE: This publication may not deal with every topic within its scope nor cover every aspect of the topics with which it deals. The procedure becomes more difficult when the consequences of the virus do not make it impossible to employ the workers (e.g. Until 30 June 2020, the amount of the benefit will be temporarily increased to 70% of the average capped salary. Copyright © 2021 L&E Global. Finally, the system of temporary unemployment is only partially applicable to public companies. From 13.03.2020 until 31.08.2020, a very simple form of temporary unemployment due to force majeure “corona” (hereinafter: “corona unemployment) … Therefore, he does not have to prove a number of working days before he is entitled to benefits. The decision not to work may therefore not depend on a unilateral decision taken by the employer or the employee. L&E Global Webinar: Diversity and Inclusion: What is or is not allowed? Nothing stated in this document should be treated as an authoritative statement of the law on any particular aspect or in any specific case. The two relevant systems are: In this case, the employer must submit a file at the National Employment Office (RVA/ONEM) to prove the situation of force majeure: i.e. Action should not be taken on this document alone. Workers can also alternate days of unemployment and working days. Unemployment Rate in Belgium decreased to 6.10 percent in November from 6.30 percent in October of 2020. L&E Global Webinar: Cross-Border Remote Work, Authorized and Unauthorized - Europe, L&E Global Webinar: Cross-Border Remote Work, Authorized and Unauthorized – Asia-Pacific, L&E Global Webinar: Vaccination and Employment: Considerations for Employers, L&E Global Webinar: Brexit Advice for Travellers, USA: Department of Labour Issues Final Independent Contractor Rule. On top of this, the government will add a supplement of EUR 5.63 per day to the unemployment benefit at the expense of the National Employment Agency. The workers might be forced to quarantine themselves. The following instances can be qualified as force majeure: The National Employment Office has announced on 17/03/2020 that it will extend the scope of force majeure to companies that voluntarily close down (although this would not constitute force majeure under normal circumstances). Anyone who loses their job has a right to unemployment benefit as long as they fulfil certain criteria. Entitlement to the supplement An Alliance of Employers' Counsel Worldwide. On the basis of this declaration, the payment institutions (trade unions) and the National Employment Service can determine the level of benefits for the temporarily unemployed. Temporary unemployment due to force majeure. Therefore, the worker does not have to prove the number of working days before he/she is entitled to benefits. Need information that is comprehensive and specific to a particular country? … Initially, there are two relevant systems: temporary unemployment due to force majeure and temporary unemployment due to economic reasons. The company is experiencing a decrease in turnover because customers are staying away or the company does not receive new orders. for workers who cannot be employed due to the abolition of events, cultural activities, sports activities, closure of cinemas, etc. for workers whose company must close down the workplace in order to stop the spread of the virus (e.g. These rising figures suggest that there will be a high increase in general unemployment in the coming months. With effect as of 13 March 2020, the regime of temporary unemployment due to force majeure has been extended and broadened. For more information, visit https://www.vow.be/. Businesses can also invoke temporary unemployment as a result of “overmacht/force majeure”. There are also four “language areas”: Dutch-speaking (Flanders), French-speaking (Wallonia), Dutch-French bilingual (Brussels-Capital) and German-speaking (a small area around Eupen), which determine the official language to be used in documents such as employment contracts. Content. Unemployment Rate in Belgium averaged 8.15 percent from 1983 until 2020, reaching an all time high of 11 percent in October of 1983 and a record low of 4.90 percent in March of 2020. That means that young people who have just completed their studies and the long-term unemployed have no entitlement to holidays, as they will not have worked during the previous twelve months. To do so, it is best for this employer to contact the Eranova service by telephone on 02/511 51 51 (accessible from Monday to Friday, from 7 a.m. to 8 p.m.). The Belgian National Employment Office has indicated on its website that if an employee cannot return to Belgium (for example, due to a flight ban) or is mandatorily quarantined in or outside of Belgium, the employee may be placed on temporary unemployment due to force majeure. Under certain conditions, the employee can benefit from benefits for temporary unemployment due to force majeure paid by the NEO. ... For example, one can be temporarily absent for holidays, illness, technical or economic reasons (temporary unemployment),.... Family workers are also included in the category ‘employed’. The employee normally receives 65% of his average capped salary (capped at EUR 2,754.76 per month). In this electronic declaration, the employer must state “force majeure” and “coronavirus” as reasons for the temporary unemployment. If this is not the case and the user wants to work with a user ID and password, he should expect a turnaround time of 10 days. Which of these two forms is the one applicable to the coronavirus outbreak? In this case, the employer no longer needs to pay the wages of the employees and the National Employment Office will pay unemployment benefits of around 70% to the employees. Employment rate, unemployment rate and activity rate by gender for Belgium and the regions, last 4 quarters. The workplace has to close down in order to prevent the further spread of the virus (mandatory or not). The “RVA/ONEM” will bear an amount of 5,63 EUR/day of unemployment. Only if it is clearly demonstrated that there was no childcare (e.g. due to quarantine), but the company is mostly hit by the economic consequences, e.g. To be entitled to temporary unemployment benefits for economic reasons, since 1 October 2016 the workers must fulfil the ordinary eligibility requirements. The force majeure system is applicable for all categories of contractual workers, but the temporary employment because of economic reasons is only open for blue collar workers in the public sector. They must have worked for a certain number of days within a given period and be able and available for work. For example, companies will be forced to close down or face a major decline in work and turnover. For them, the procedure to submit a request at the National Employment Office is fairly similar to the procedure for temporary unemployment because of force majeure. Further, the mere fact that the employee returns from a country affected by the coronavirus, or the mere fact that the employee has come into contact with a person coming from an affected area, without any concrete indications of a risk of infection, cannot be invoked to make this employee temporarily unemployed due to force majeure. The Director of the (local office of the) National Employment Office may grant a derogation from the submission deadline if the coronavirus has led to a sudden drop in work. The rest of the procedure is mostly similar as for the temporary unemployment because of force majeure. Access to latest statistics. retail sector) or which, despite the compulsory closure, are still able to offer limited services (e.g. Our unique and innovative Country Comparison Tool allows you to automatically generate an interactive, country-by-country comparison of the most important workplace law matters that employers need to be aware of. the company falls within the scope of the Act of 5 December 1968 on collective agreements and joint committees. The decision on the temporary unemployment due to force majeure will be taken within three days after receipt of the complete file by the National Employment Office. A third of the requests have already been approved. All Rights Reserved. The company does not receive enough supplies to continue its production or provision of services. For workers who are forced in quarantine in another country which makes it impossible for him to work. the school would be materially incapable of providing it) and the parent has no alternative (no teleworking possible, the partner cannot intervene, only the grandparents or other persons of an advanced age could intervene), temporary unemployment due to force majeure can be claimed. Our unique and innovative Country Comparison Tool allows you to automatically generate an interactive, country-by-country comparison of the most important workplace law matters that employers need to be aware of. However, white-collar workers can only enjoy temporary unemployment because of economic reasons if the company fulfils the preliminary cumulative conditions: If the company fulfils the preliminary conditions, it can submit a request for temporary unemployment for its white-collar workers, just like for the blue-collar workers. a statement with, if necessary, the supporting documents, with a detailed explanation showing that the unemployment was caused by force majeure, caused by the coronavirus. During periods of temporary unemployment, the employee’s employment … The procedure and conditions for this form of unemployment are stricter than for force majeure. This supplement will be paid by the RVA/ONEM. Belgium has several systems of temporary unemployment, which are supervised by the National Employment Office (RVA/ONEM). Belgium is made up of three regions: Flanders, Wallonia and Brussels-Capital. Corona virus (Covid-19) – The most important labor law issues in Belgium (update 20 March 2020) Navigation. However, civil servants and students are not covered. Temporary unemployment due to force majeure will be accepted, if applicable, for the duration indicated by the employer, but at the latest until 30/06/2020 (except for the specific situation of the imposed closure until 3/04/2020, which will possibly be extended). Until 30 June 2020, the amount of the benefit is temporarily increased to 70% of the average capped salary. An employer who has never used the application system (or any other application on the social security portal) must first register as a user before he can use the application. The temporary unemployment system aims to avoid a large number of bankruptcies and allows workers to receive 70% of their salary as well as an additional €150. Days of temporary unemployment due to force majeure resulting from the COVID-19 pandemic are now taken into account for the calculation of holiday entitlement in Belgium. Self-employed people are not entitled to unemployment benefit. Table 2. The Belgian Minister of Work Nathalie Muylle has already declared on 6 February 2020, that the Coronavirus can form a justified reason for temporary unemployment. weekend), for those days of mandatory closure). By way of exception, the employer does not have to provide a monthly control form (“C3.2A”) to each temporarily unemployed person for the months March, April, May and June 2020. White-collar employees earning more than this may have a trial period of up to 12 months. For more information, visit https://www.vow.be/. The amount of the benefit depends on: the amount of the last salary received (subject to an upper monthly limit of € 2,754.76 for the first 6 months of unemployment, of € 2,567.49 for the 6 following months and of €2,399.25 after 12 months); The Coronavirus (COVID-19) crisis is affecting businesses in various ways. The difficulty is mostly related to the fact that temporary unemployment because of economic reasons was initially only meant for blue-collar workers. However, the government has decided to open up the temporary unemployment procedure due to force majeure to all situations related to the coronavirus, without actually referring to a situation of force majeure. The Belgian system of temporary unemployment is – as a result of the coronavirus pandemic – currently being used by more employers than ever before. All Rights Reserved. In case of force majeure, a company does not have to be closed down completely. In concrete terms, it is therefore necessary to check whether the taxable income of the employee during the period of temporary unemployment (consisting of the unemployment benefit paid by the National Employment Office (NEO), any supplements paid by the NEO or an Existence Security Fund and the supplement paid by the employer) does not exceed, on a … The temporary unemployment due to force majeure is applicable to the coronavirus outbreak. Temporary unemployment due to corona. He must mention ‘CORONAVIRUS’ as a reason for force majeure. Belgium has several systems of temporary unemployment, which are supervised by the National Employment Office (RVA/ONEM). Van Olmen & Wynant attorneys are available to assist you with these and other workplace issues. The amount of the temporary unemployment benefit is increased to 70 % (instead of 65 %) of the last monthly salary (with a maximum of 2754.76 EUR). Initially, this 'Corona unemployment' regime was applicable for the duration of the government measures, i.e. The two relevant systems are: temporary unemployment because of force majeure; and; temporary unemployment because of economic reasons. Discover the most important labour and employment rules, regulations and best practices exclusive to 25+ key jurisdictions worldwide, conveniently together in one place. Belgium is making massive use of temporary unemployment in the context of the coronavirus crisis. This file does not have to be submitted in the case of an imposed (at least partial) closure by the government. A withholding tax on professional income of 26.75% will be deducted from the benefit. Onem has already received 1.36 million workers’ requests from 133,000 companies. A withholding tax on professional income of 26.75% will be deducted from the benefit. In Belgium, two types of temporary unemployment exist for companies that can no longer put their employees to work or maintain their employees’ normal working schedules: temporary unemployment due to force majeure and temporary unemployment for economic reasons. TEMPORARY UNEMPLOYMENT BECAUSE OF FORCE MAJEURE 1. Note that these unemployment benefits only cover a part of the lost salary and are capped at 70% of monthly pay (up to EUR 2,754.76). In the event of temporary unemployment due to a lack of work for economic reasons, the worker is entitled to a supplement to the temporary unemployment benefits. In case of temporary unemployment due to force majeure, the employee is exempted from waiting time. In case the work at the workplace can be replaced by telework, it will not be impossible to employ the employee and it will not constitute a force majeure. For specific advice, please contact a lawyer of our firm. If not, the company will have to go through the procedure (to be recognised as undertaking in difficulties). During this recognition procedure, an application may be submitted for temporary unemployment due to force majeure provided that the employer demonstrates that he has initiated the prior procedure for recognition as a company in difficulty by sending a copy of the application for recognition to the Minister of Work to the National Employment Office. For workers whose company is forced to close by the government (e.g. “Now we’re up to 31,000 employees in 1,700 businesses. If an employee chooses to end a contract, a specified period must elapse before unemployment benefit is payable in Belgium. Otherwise your benefits may be reduced or temporarily suspended. It’s, however, essential to make sure there are no unintended consequences as a result of deploying temporary unemployment in the company. The employer is no longer required to register for the system of temporary unemployment, but must always submit an electronic declaration (“ASR Scenario 5”) for the temporarily unemployed to the social security portal, as soon as possible. Furthermore, civil servants do not fall under the scope of the system (neither force majeure, nor economic reasons). It is not designed to provide legal or other advice with regard to any specific case. Belgium has several systems of temporary unemployment, which are supervised by the National Employment Office (RVA / ONEM). In this case, the employer can fill in “Lock down – sector of activities” in the comment section of the electronic declaration, and this will suffice. During these four months, the temporarily unemployed will be exempt from the obligation to hold a C3.2A card. The general application of the flexible COVID-19 temporary unemployment scheme (a form of temporary unemployment due to force majeure) will come to an end on 31 August 2020, but will nevertheless continue to apply (from 1 September until 31 December 2020) to certain companies and sectors which have been particularly hard hit by the corona crisis. The National Employment Office also accepts temporary unemployment when the workplace only needs to close down during or a limited part of the week (e.g. Exceptionally, therefore, in this scheme, days of unemployment may alternate with working days.”. Belgian companies can be severely affected by the COVID-19 outbreak in several ways: In such cases, the company could get into financial problems if they need to continue to pay the employees, while experience a steep decline in turnover. Author: Pieter Pecinovsky. Van Olmen & Wynant attorneys are available to assist you with these and other workplace issues. “Around a hundred businesses and 1,500 employees had used the temporary economic unemployment system in the middle of the week,” the minister said. Where the submission forms asks for the economic reasons, the employer must mention ‘CORONAVIRUS’. Copyright © 2021 L&E Global. The majority of the employees become ill. It therefore mainly concerns companies in the, the use of this measure is provided for in aÂ. Such a financial shock can be partly absorbed by the system of temporary unemployment. For more information please contact Joseph Granato, Communications Manager at L&E Global at joseph.granato@leglobal.org. In case of temporary unemployment due to force majeure, the worker is exempt from the waiting period. To qualify, you must notify the benefits office of your move and register with the unemployment office in your new country within seven days of your arrival. Subscribe to our podcast today to stay up to date on employment issues from law experts worldwide. Labor law in Belgium Once you have found a job, there can be a probationary period of up to two weeks for blue-collar workers, and anywhere between one and six months for white-collar workers if the annual wage does not exceed around EUR 36–37,000. If the temporary unemployment is not due to the coronavirus, the employer can still invoke the system of temporary unemployment for economic reasons. In Belgium the number of holiday days you are entitled to depends on your contributions in the previous year. L&E Global Webinar: The Whistleblowing Directive: A Gamechanger? In this case, the employers could submit a request for temporary unemployment for his workers due to lack of work, because of economic reasons. The federal government decided on 6 November 2020 to reintroduce the simplified temporary unemployment procedure due to coronavirus for all employers and workers (blue-collar and white-collar workers) from 01.10.2020 until 31.03.2021 inclusive. Need information that is comprehensive and specific to a particular country? Employees will benefit from a temporary increase of their allowance in the event of temporary unemployment. This is because the procedure for economic reasons is often much more cumbersome. This page provides the latest reported value for - Belgium Unemployment … The ONEM also carries out controls on abuses which can lead to sanctions against companies. The substantial increase in temporary or economic unemployment (tijdelijke werkloosheid/chômage technique) is being interpreted as a strong indicator of how hard the global economic crisis has hit Belgium. The two relevant systems are: temporary unemployment because of force majeure; and temporary unemployment because of … If this new user has an eID reader and knows his eID PIN or if he is using the “Itsme” application, access can be granted quickly (10 minutes). Speakers: Michaela Felisiak (Beiten Burkhardt / Germany) & Kato Aerts (Lydian / Belgium) Initially, there are two relevant systems: temporary unemployment due to force majeure and temporary unemployment due to economic reasons. COVID-19 Temporary Unemployment Scheme in Belgium Applicable from October 1, 2020 to March 31, 2021 (With Extension Possible) * Belgian Single Work Permits: Finally Some Good News? the mandatory closing of all bars, restaurants, clubs and non-essential stores). Discover the most important labour and employment rules, regulations and best practices exclusive to 25+ key jurisdictions worldwide, conveniently together in one place. Muylle estimated that this increase in citizens collecting temporary unemployment could cost the government up to €18 billion per month. This was confirmed in a communication of 15 March 2020 by the National Employment Office: “For those businesses where only partial closure is imposed (e.g. Explore Employment Law Resources from more than 40 Countries Worldwide. because the company is hit by a decrease in its customer base, production, turnover, orders, etc. If an employee is stranded abroad and unable to return to Belgium, he/she is entitled to temporary unemployment benefit as a result of force majeure. This possibility can be widely applied as from 13 March 2020. currently until 19 April (those these are very likely to be extended until 3 May). The force majeure procedure is open to blue-collar and white-collar workers (from the private sector, the public sector and the non-profit sector); temporary agency workers throughout the duration of their temporary contract (renewable where appropriate); staff working in educational establishments; and apprentices with vocational training (mainly apprentices with a vocational training contract in the French Community and with a vocational training contract in the Flemish Community). in case employees got contaminated). However, freelancers who were employed before working independentl… Amount. Such a financial shock can be partly absorbed by the system of temporary unemployment. the fact that the consequences of the coronavirus render the company temporarily unable to employ his employees. The same applies to the employee who is placed in quarantine after his/her repatriation to Belgium. Also, employees who, as a result of the suspension of classes in the schools, stay at home to care for their children, cannot for this reason be temporarily unemployed for reasons of force majeure. In principle, the schools remain open and in principle shelter is provided. Belgium has several systems of temporary unemployment, which are supervised by the National Employment Office (RVA / ONEM). The employee receives 65% of his average capped salary (capped at EUR 2,754.76 per month). The employer who does not yet have access to the social security portal can, exceptionally, send the notification by letter (possibly by registered mail) or preferably by e-mail to the unemployment office of the place of business where your company has its registered office. There are two types of temporary unemployment: In practice, this means that some employees of the same company may be temporarily unemployed and others may not. COVID-19 Temporary Unemployment Scheme in Belgium Applicable from October 1, 2020 to March 31, 2021 (with extension possible) On November 6, 2020, following the new lockdown measures, the Belgian government decided that all companies impacted by the COVID-19 crisis can By Claeys & Engels. Two thirds were submitted very recently. From Employment Matters - Europe: In this episode, we discuss remote working in Belgium, temporary unemployment and recent employment legislation updates. In addition, the employer who invokes force majeure, must also (preferably the same day as the electronic notification) by post or preferably by e-mail, addressed to the temporary unemployment service of the competent local office of the National Employment Office, submit a file, i.e. Belgium has several systems of temporary unemployment, which are supervised by the National Employment Office (RVA / ONEM). 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