Factsheet for measure
BE-2011-1/2621
– measures in Belgium
Wage guarantee in case of employer insolvency
L'indemnisation des travailleurs licenciés en cas de fermeture d'entreprises/Vergoeding van de in geval van Sluiting van Ondernemingen ontslagen werknemers
Background information
The guarantee was implemented in the event of employer insolvency. Via the measure, the employee benefits from a guarantee through the Closure Fund ("Fund to compensate employees made redundant in the event of enterprise closure"). The Fund can then recover the amounts paid out from the guarantee from the employer.
Content of measure
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.
The measure applies in case of 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.
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 is provided by the national government.
Use of measure
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
Target groups
|
Workers
|
Businesses
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Citizens
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Unemployed
|
Applies to all businesses
|
Does not apply to citizens
|
Actors and funding
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Actors
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Funding
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National government
Public employment service
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Companies
National funds
|
Social partners
Social partners' role in
designing the measure
and form of involvement:
|
Trade unions
|
Employers' organisations
|
|
Role
|
Unknown
|
Unknown
|
|
Form
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Not applicable
|
Not applicable
|
Social partners' role in the
implementation, monitoring and assessment phase:
-
Unknown
-
Main level of involvement: Unknown
Involvement
Unknown
Views and reactions
Unknown
Sources
