Transition allowance

Phase: Management
  • Employment incentive
  • Income support for workers
  • Support of business transfers
Last modified: 01 September, 2020
Projekto pavadinimas::

Changement d'employeur en cas de reprise d'actif après faillite/Verandering van werkgever in geval van overname van activa na faillissement

Angliškas pavadinimas:

Change of employer in case of takeover of assets after bankruptcy


Employees still bound by an employment contract or apprenticeship contract at the time of the bankruptcy or those who have been dismissed one month preceding the date of the bankruptcy are eligible.  Employees must be entitled to severance pay and such payment not given to them yet. Besides, the acquirer must re-employ such employee within six months after the takeover of the assets.

Main characteristics

The transition allowance ensures an equivalent wage to the dismissed workers until rehired after the takeover of a bankrupt company for up to 6 months. The allowance is paid by the Business Closure Fund and is equivalent to the worker's gross salary before bankruptcy up to a ceiling fixed by law. The maximum amount of the bridging allowance is equal to the global ceiling established by the fund (€25,000 since 1 January 2009) minus the amounts of the payments made by the fund for wages, allowances, benefits and holiday pay.

The Business Closure Fund is financed for the most part by the companies themselves, that have to pay a percentage of their wage bill and forms a part of their obligatory social contributions. Another (smaller) part is funded by the Belgian state.

Unlike in the case of a conventional transfer, the prospective employer chooses which employees he wishes to take over after the bankruptcy. The principle is that the protected employee cannot demand to be preferably hired. All employees are on an equal footing.

The employee, too, is free to choose whether or not to enter into the employment of the acquirer. His or her refusal does not in any way affect the employee's rights vis-à-vis the transferring company, such as the severance pay, the end-of-year bonus, etc.


  • National funds
  • Companies

Involved actors

National government
Public employment services
The Business Closure Fund are managed by the National Employment Office
Funding through contributions to the Business Closure Fund which is made up for the most part by contributions made by companies and the other part by the Belgian state.


In 2017, the fund paid 21,772 employees from 3,475 different companies.


No information available.


No information available.


No information available.
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