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Publication of new CBAs of the NLC regarding UCA, “end-of-career jobs” and unemployment for economic reasons

Newsflash
Collective employment relations

On 23 July 2021, the National Labour Council (NLC) published a large number of collective bargaining agreements (CBAs) on the unemployment regime with company allowance (UCA), “end-of-career jobs” and unemployment for economic reasons for white-collar workers. Some specific UCA schemes are extended, and the age conditions are modified. In addition, the conditions for requesting an exemption from adjusted availability within the framework of UCA are also made less stringent. The age limit for using “end-of-career jobs” is lowered to 55 years for the period from January 2021 to June 2023. Finally, the simplified unemployment for economic reasons for white-collar workers is extended until 30 June 2023.

The most important novelties of the new CBAs are summarised below:

1- Extension and change of age conditions (CBAs n° 150, 151 and 152) and easing adjusted availability within the framework of UCA (CBAs n° 153, 154 and 155)

A. Extension and change of the age conditions

Since the CBAs on UCA had already expired, the NLC had to adapt the existing framework CBAs so that the specific schemes could become operational again. To this end, the NLC published three new framework CBAs last week:

Medical reasons

CBA n° 150 merely extends the existing framework for this scheme for the period from 1 January 2021 until 30 June 2023. Both the age condition (58 years) and the occupational history (35 years) remain unchanged.

Heavy occupation and night work

CBA n° 151 sets out the conditions under which dismissed workers with an occupational history of at least 33 years can be eligible for UCA. They must:

  • have worked 20 years in a “night work” scheme (as referred to in CBA n° 46); or
  • have worked in a heavy occupation for at least 5‑7 years during the last 10-15 calendar years; or
  • have worked in the construction sector (JC n° 124) with an incapacity for work.

These workers must be at least 60 years old at the time of the termination of the employment contract.

In addition, their respective joint committee must have concluded a sectoral CBA introducing this scheme.

Long occupational history

CBA n° 152 sets – for the period from 1 July 2021 until 30 June 2023 – the conditions for this scheme at:

  • 60 years or older by the time the employment contract ends; and
  • an occupation history as a salary earner of at least 40 years (at the time of the termination of the employment contract).

No initiative needs to be taken by the sectors to grant this scheme.

B. Easing adjusted availability within the framework of UCA (CBA n° 153, 154 and 155)

In addition, CBAs n° 153, n° 154 and n° 155 ease the conditions for granting the exemption from the obligation of adjusted availability within the framework of UCA.

Long occupational history, heavy occupation and night work

For the period from 1 July 2021 until 31 December 2022, CBA n° 153 provides that older workers who are dismissed within the framework of UCA, have worked 20 years in a “night work” scheme, have worked in a heavy occupation or have worked in the construction sector with an incapacity for work, have worked in a heavy occupation and with an occupational history of at least 35 years or have a long occupational history, may request to be exempted from the obligation of the adjusted availability on the labour market, provided that:

  • the workers are dismissed not later than 31 December 2022 during the validity period of CBA n° 153; and;
  • the workers are at least 60 years old on 31 December 2022 and at the time of termination of the employment contract; and
  • the workers are covered by a joint committee that has concluded a sectoral CBA referring to CBA n° 153.

In addition, workers who, at the time of their application, have either reached the age of 62 or can demonstrate 42 years of seniority may also apply for the exemption from the obligation of adjusted availability if the sector has concluded a sector CBA referring to CBA n° 153.

CBA n° 155 further stipulates the same conditions for the period from 1 January 2023 until 31 December 2024.

Company in difficulty or restructuring

According to CBA n° 154, the same conditions apply for the period from 1 January 2021 to 31 December 2022 for dismissed older workers (occupational history of 42 years or age of 62 years) who were employed in a company in difficulty or restructuring. A CBA or collective agreement is required at company level.

CBA n° 155 further stipulates the same conditions for the period from 1 January 2023 until 31 December 2024.

2- End-of-career jobs (CBAs n° 156 and 157)

The NLC also amended the conditions in CBAs n° 156 and 157 regarding access to the rights to benefits in the context of “end-of-career jobs” for workers with a long occupational history, heavy occupations or within a company in difficulty or restructuring.

CBA n° 156 provides that, for the period 2021-2022, the age limit is reduced to 55 years for workers who, in accordance with Article 8 of CBA n° 103 reduce their working time to half-time or one-fifth. For workers with a long occupational history and heavy occupations, the specific conditions laid down in CBA n° 156 must be additionally considered.

CBA n° 157 provides that, for the period from 1 January 2023 until 30 June 2023, the age limit is also reduced to 55 years for workers who, in accordance with Article 8 of CBA n° 103 reduce their working time to half-time or one-fifth. For workers with a long occupational history and heavy occupations, the specific conditions laid down in CBA n° 156 must be additionally considered.

An additional sectoral initiative is required to make use of this age limit.

3- Extension of unemployment for white-collar workers for economic reasons (CBA n° 159)

During the outbreak of the covid-19-crisis in spring 2020, an interprofessional CBA (CBA n°147) regarding unemployment for white-collar workers for economic reasons was concluded within the NLC. This national CBA ensured that, in the absence of a sectoral CBA, companies did not first have to negotiate a CBA or draw up a business plan. Companies could just invoke this national CBA to apply for temporary unemployment for economic reasons for their white-collar workers. This CBA expired on 30 June 2020, but CBA n° 148 (concluded on 7 December 2020) extended this regime until 31 December 2021.

On 15 July 2021, the social partners concluded a new CBA n° 159 regarding economic unemployment for white collars. The aim of this CBA is identical to the two previous ones: to create a framework enabling companies to introduce economic unemployment for white-collar workers. This CBA is effective from 1 January 2022 until 30 Jun 2023.

The so-called preliminary conditions on the part of the company (i.e., decrease in work due to a reduction in turnover/orders/production) remain unchanged.

Action point

With the dismissal of an older employee, the employer must always verify whether the employee concerned meets one of the conditions of the specific UCA schemes and/or whether use can be made of the relaxation of adjusted availability in this context.

Also, for older workers who are still employed, you can check whether the worker can enter an “end-of-career job” (with benefits).

Furthermore, employers can continue to make use of the scheme of economic unemployment for white-collar workers until 30 June 2023.