Dismissal compensation indemnity - Calculation and granting modalities elaborated

The Royal Decree of 24 April 2014 (Official Belgian Gazette of 15 May 2014) completes the Royal Decree of 9 January 2014 concerning the dismissal compensation indemnity.

As a result of the modified dismissal rules, blue-collar workers who are dismissed as from 1 January 2014 will under certain conditions be entitled to a dismissal compensation indemnity borne by the National Employment Office (RVA/ONEM). The Royal Decree of 9 January 2014 already determined how this indemnity must be calculated, applied for and granted (see our Newsflash of 24 January 2014). The Royal Decree of 24 April 2014 now elaborates on the calculation and payment modalities.

It was already determined that the dismissal compensation indemnity will cause the blue-collar worker to lose his/her right to unemployment benefits for a certain period of time. The Royal Decree of 24 April 2014 now specifies from which moment on exactly the blue-collar worker will no longer be entitled to such benefits.

Consequently, the Royal Decree clarifies that the dismissal compensation indemnity will be paid out on a monthly basis, yet leaving the blue-collar worker the possibility to ask to pay out the indemnity at once. It also determines the further granting modalities.

Finally, the Royal Decree further elaborates on the method for calculating the dismissal compensation indemnity.

> Action point

In the event you dismiss blue-collar workers, you can inform them about their rights and refer them to the National Employment Office (RVA/ONEM).