EMCC European Monitoring Centre on Change

Wage guarantee in case of employer insolvency

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

L'indemnisation des travailleurs licenciés en cas de fermeture d'entreprises/Vergoeding van de in geval van Sluiting van Ondernemingen ontslagen werknemers

Име на английски:

Wage guarantee in case of employer insolvency

Coverage/Eligibility

Collective dismissals (at least 10 in companies with 20–99 employees, 10% in companies with 100–299 employees, at least 30 in companies with 300 or more employees) caused by bankruptcy or insolvency of the employer.

Main characteristics

In the case of collective layoffs as a result of bankruptcy or insolvency of a company, workers receive a closing-down indemnity paid by a closing fund managed by the public employment services.

The employment contract must be terminated 12 months before to 13 months after the closing in order to receive guarantees in case of employer’s insolvency.

There are no exclusions of part-time or fixed-term workers.

The fund will intervene in the payment of wages due and indemnities and benefits that are due. 

For companies closing after 1 June 2016, the redundancy amounts to €156.88 for each year of seniority in the company. In order 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, they were active in the current company they will receive an additional €156.88.

The fund is financed through social security contributions by the employer levied on the gross salary of employees.

Payment will be realised also if the employer does not contribute.

Funding

  • National funds
  • Companies

Involved actors

National government
Legal framework; funding.
Public employment services
Mangement of the fund.

Effectiveness

2011           25,477 employees received a closing-down indemnity

2012           27,529 employees received a closing-down indemnity

2013           30,073 employees received a closing-down indemnity

2014           28,534 employees received a closing-down indemnity

2015           25,340 employees received a closing-down indemnity

2016           22,704 employees received a closing-down indemnity

2017 21,772 employees received a closing-down indemnity

Source: Rijksdienst voor Arbeidsvoorziening, (RVA) – Office national de l’Emploi (ONEM)

Strengths

No information available.

Weaknesses

No information available.

Examples

No information available.
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