Dismissal compensation indemnity for blue-collar employees

The Royal Decree of 9 January 2014 concerning the dismissal compensation indemnity (Official Gazette of 20 January 2014) determines how this indemnity for dismissed blue-collar employees is calculated, applied for and granted.

Since 1 January 2014, a double calculation has to be made to determine the notice period of employees with employment contracts which started before 1 January 2014 (see our Newsletter of 12/20/2013). Since blue-collar employees who entered an employment contract before 1 January 2014 still have less generous compensation entitlement than under the new rules, the National Employment Office (RVA /ONEM) will pay a 'dismissal compensation indemnity' to these blue-collar employees.

It concerns a net indemnity equal to the difference which the employer pays when dismissing the blue-collar employee and the amount to which the blue-collar employee would have been be entitled if he/she had earned his/her entire seniority after 31 December 2013. The blue-collar employee must meet the following conditions:

• He/She entered into service as a blue-collar employee before 1 January 2014;
• He/She is dismissed after 31 December 2013;
• His/Her seniority amounts to:
  - At least 20 years on 1 January 2014;
  - At least 15 years on 1 January 2015;
  - At least 10 years on 1 January 2016;
  - Less than 10 years on 1 January 2017.

The Royal Decree of 9 January 2014 further expands on the calculation method. Furthermore, it determines that the blue-collar employee must apply for the indemnity through his/her local payment office by use of the form C4 - proof of unemployment. The effects with regard to unemployment benefits have also been determined.

The indemnity is not granted to blue-collar employees who work in certain sectors under the temporary, exception regime for notice periods (e.g. the diamond- and clothing sector), to blue-collar employees who execute certain activities on temporary and mobile workshops and to blue-collar employees who are subject to a collective dismissal, that was notified before 1 January 2014 and where a CLA-social plan was deposited before 31 December 2013.

We take this opportunity to refer you to our new website www.dismissal.be which allows you to easily calculate the notice periods.

> Action point

You can inform those of your employees who were in the past regarded as blue-collars about their new rights with respect to dismissal compensation