Redundancy allowance for a closed business

Belgium
Phase: Management
Тип:
  • Income support for workers
Last modified: 17 August, 2020
Име (на собств. език):

Indemnité de fermeture/sluitingsvergoeding

Име на английски:

Redundancy allowance for closing businesses

Coverage/Eligibility

Compensation is available to employees who have been dismissed from a company preceding (12 months for blue–collar workers and 18 months for white–collar workers) or consecutive (12 months after, or up to 3 years for white–collar workers who take part in liquidation proceedings) to its closure. The company must have employed, on average, 20 workers during the calendar year of its closure.

Main characteristics

This provision ensures redundancy allowances for employees of closed or closing businesses. The redundancy is calculated based on seniority and age*. The redundancy should be paid by the company however, if the company cannot do so, the compensation is paid by the Company Closure Funds. The funds are financed by employer's contributions and trustees.

*For companies closing after 1 June 2017 the redundancy allowance amounts to €166.48 for each year of seniority in the company up to a maximum of €6,492.72. To take into account the personal situation of the employees, an additional premium is available for employees over 45 years old. For each year above 45, and if they were active in the current company, they will receive an additional €166.48.

Funding

  • National funds
  • Companies

Involved actors

Public employment services
The National Employment Office is responsible for the management of the Company Closure Funds

Effectiveness

No information available.

Strengths

No information available.

Weaknesses

No information available.

Examples

No information available.
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