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Brexit - Belgium hard brexit law - Employment

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On 6 March 2020, Belgium has adopted a specific act for companies in difficulties due to Brexit. This act will enter into force on 22 March 2021 and will cease to apply on 21 March 2022. The act provides three temporary crisis measures that aim at safeguarding employment:  

  • Temporary unemployment (fulltime or part time). 
    For the days of temporary unemployment, the workers receive unemployment allowances at the charge of the National Employment Office and a company supplement (of max. EUR 5,63 per day) at the charge of the employer.
  • Temporary individual reduction of working time (1/5th or 1/2th) in mutual consent with the workers.
    For the days they do not work, the workers concerned receive a complementary allowance at the charge of the National Employment Office (same amount as time credit allowances).
  • Temporary collective reduction of working time (1/5th or 1/4th) via a collective bargaining agreement or an amendment of the work rules. 
    The employer can pay a company supplement for the days not worked but the gross remuneration of the employees may not increase. The employer benefits from a reduction of social security contributions. 

All measures are limited in time (they can only be applied during a number of months/weeks). Moreover, the act of 6 March 2020 is limited to the private sector and only applies to companies recognized as company in difficulties due to Brexit by the Minister of Work. The main condition for such recognition is that the company is affected by a 5% reduction in turnover, production or orders due to Brexit. 

Our dedicated Lydian team is ready to assist you with any questions you might have regarding Brexit. 

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