- 13 Mar 2020
Yesterday evening, the National Security Council announced reinforcing measures to prevent the spread of the coronavirus. These measures will have a far-reaching impact on businesses and employment. The government confirmed the initiatives already taken.
In the first place, companies that cannot employ their workforce because of the coronavirus can invoke the system of temporary unemployment due to force majeure. This system has since been extended until 30 June 2020. The amount of the benefit has been increased to 70% of a capped salary. More information about this can be found in our previous newsflash .
Companies faced with a substantial drop in production, turnover or orders because of the Covid-19 coronavirus can invoke the system of economic unemployment. If the company has to apply to the Ministry of Labour for recognition as a company in difficulties, it can also apply in the meantime for the system of temporary unemployment on grounds of force majeure.
Finally, teleworking is further encouraged and travelling is discouraged.
These measures will be further evaluated in the coming days and strengthened where necessary. We will of course keep you informed.
Meanwhile, the Covid-19 coronavirus is officially considered a pandemic and more and more companies are beginning to feel the economic impact of the virus. When a company is faced with a lack of work, employment contracts can be suspended by introducing temporary unemployment for economic reasons. For blue-collar workers, it is sufficient to demonstrate that normal working arrangements cannot be maintained due to economic reasons. For white-collar workers, on the other hand, the company must, in principle, meet strict preliminary conditions – namely, 10% drop in turnover, production or orders or 10% degree of temporary unemployment for blue-collar workers). However, the problem is that, in order to assess the decrease, the figures of the most recent quarter submitted (in this case, the fourth quarter of 2019) are taken into account and no decrease was yet noticeable in this quarter (as there was no mention of the coronavirus).
If a company does not meet these preliminary conditions, it can apply to the Minister of Labour to be recognised as a company in difficulties on the basis of unforeseen circumstances resulting in a substantial short-term reduction in turnover, production or orders.
Before submitting this application, the company must first try to conclude a company collective bargaining agreement with its trade union delegation. This presupposes negotiations, among other things, on the amount of the supplement that the employer will pay, the measures for maximum retention of employment and the maximum duration of the suspension. If the negotiations with the trade union delegation do not lead to an agreement within two weeks, or if there is no trade union delegation within the company, the company may draw up a business plan instead of a collective bargaining agreement.
The company can then submit its application for recognition as a company in difficulties to the FPS ELSD, together with the collective bargaining agreement or the business plan. The application is then submitted to the “Business Plans” Commission, which gives its opinion to the Minister within two weeks. On the basis of this advice, the Minister adopts a decision on the application for recognition.
As the full recognition procedure may take some time, the NEO also allows, in specific cases, companies to invoke the abovementioned system of temporary unemployment due to force majeure while waiting for the completion of the recognition procedure as a company in difficulties. In order to invoke force majeure, the employer must make an electronic declaration to the regional NEO office as soon as possible. The NEO then recognises the force majeure within three to four days on average.
If necessary, obtain the recognition of your company as a company in difficulties in order to benefit from economic unemployment for white-collar workers. In the meantime, you can also submit an application for temporary unemployment due to force majeure to the NEO. We can of course assist your company in these application procedures.
We will organize a webinar on this topic in French on 19 March at 12h30 and in Dutch on 20 March at 14h. An invitation will be sent shortly.