Temporary unemployment – update. Introduction of transitional measures on economic unemployment.

On 28 September, a new law containing various provisions on temporary unemployment was published in the Belgian Official Journal. The law provides for the introduction of a number of temporary transitional measures concerning the traditional system of economic unemployment as the special corona unemployment system comes to an end. In addition, the federal government announced on 17 September that a new form of temporary unemployment would be developed to deal with the energy crisis. However, the concrete modalities of this “temporary unemployment energy” schedule are not known yet.

Sanction for the employer who wrongfully invoked temporary unemployment

The law introduces a sanction for the employer who has wrongfully relied on temporary unemployment due to force majeure (including corona unemployment), technical defect, bad weather or lack of work due to economic reasons. The sanction is that the employer must pay the employee the normal salary for the days during which no temporary unemployment could be invoked.

This sanction can be imposed during the period from 1 July 2022 to 31 December 2022.

Possibility for the NEO to reclaim unduly paid allowances from the employer

The law also gives the National Employment Office (NEO) the possibility to reclaim the allowances that were unduly paid by the NEO to the employee from the employer who wrongfully placed the employee in a temporary unemployment scheme. In this way, the employee himself will not be confronted with reclaims of benefits that are the consequence of an unjustified temporary unemployment scheme.

The NEO will be able to use this possibility during the period from 1 July 2022 to 31 December 2022.

Modifications to the temporary unemployment for economic reasons scheme

The law also provides for a number of temporary transitional measures to ensure a smooth transfer from the corona unemployment system to the traditional economic unemployment system.

Hence, for the economic unemployment of white-collar workers, the conditions for being considered as a “company in difficulty” are temporarily modified. A decrease in turnover, production or orders by at least 10%, which is one of the criteria to be considered as a company in difficulty, can temporarily be measured by making a comparison with the year 2019. This is contrary to the normal rule that a comparison must be made with one of the two previous years (in this case, 2020 and 2021).

Another criterion to be considered as a company in difficulty is the percentage of temporary unemployment of the blue-collar workers within the company (this must be at least 10%). As a transitional measure, the new law allows that the days of corona unemployment or temporary unemployment due to the war in Ukraine for blue-collar workers can be taken into account for the calculation of this 10% minimum rate.

There are also two transitional measures for economic unemployment for blue-collar workers. The first one provides for a temporary derogation from the obligation to resume work one week after four weeks in the situation of total suspension of the employment contract. This will allow the execution of the employment contract to be suspended for 8 or 12 weeks. 

The second measure is that the minimum notice period in case of the application of an economic unemployment scheme for both blue- and white-collar workers is reduced from 7 days to 3 days.

These measures are introduced for the period from 1 June 2022 to 31 December 2022.

Extension of the temporary unemployment force majeure scheme for parents

Finally, the law provides for an extension of the temporary unemployment force majeure scheme for employees when it is impossible for their child to attend the day-care centre, the school or the care centre for people with disabilities. This measure was introduced in December 2021 as a support measure due to the corona crisis. The measure was originally supposed to expire on 30 June 2022 but this law now extends it to 31 December 2022.

Key message

The various support measures resulting from the corona crisis seem to be coming to an end. Companies can however move to the classic systems of economic unemployment. Furthermore, we await for the announced scheme of temporary unemployment due to the energy crisis. We will keep you posted on any further developments.