New Belgian Furlough Schemes: Which is Best for You?

By Yasmine Lingemann

On Friday 28th August the British Chamber of Commerce EU & Belgium had the pleasure of hosting Sophie Maes and Sieglien Huyghe from Claeys & Engels to discuss the new changes to the Belgium temporary unemployment scheme from today, September 1st. 
The existing scheme will be split up into five new schemes for Belgian businesses to choose from. See below for a full breakdown of each scheme.

1. Corona temporary unemployment scheme valid until 31 December 2020
Conditions-
The firm must either belong to a sector that has been heavily affected by the Coronavirus OR have a minimum of 20% days of unemployment in one quarter compared with the previous quarter.

Application process-
Applicants must complete a C160A- HGO form to send to the National Employment Office (NEO) and receive a confirmation from NEO.

Formalities during use-
Notify & inform employees, the Work Council/ Trade Union.

Advantages & disadvantages-
+Few formalities and applicable to all workers (blue and white collars).
-Expires on the 31st of December.

2. “Normal” economic temporary unemployment scheme for white-collar workers
Conditions-
The firm must prove a loss in turnover, production or orders by at least 10% OR a reduction in employment for blue-collar workers by 10% OR sufficient recognition by the Ministry of Work as a company in difficulty.

Application process-
A new CBA or Business Plan must be drawn. The Business Plan MUST be approved by the Commission for Business Plans which takes roughly two weeks.

Formalities during use-
A C160A form must be completed together with supporting documents. 
If you have a CBA, send this to the NEO.
If you have a Business Plan, send this to the FPS.
Notify the NEO and all employees a minimum of one week before starting date of unemployment.
Communicate the economic reasons to support your application to either the Work Council or Trade Union Delegation.
Keep record in a validation book.
Deliver a C3.2A form to each employee an notify the NEO before the first day of unemployment every month.
A daily supplement of €5 is required.


Advantages & disadvantages-
+Possibility to regulate temporary unemployment for an immediate period of one year
+Maximum of 16 weeks for full-time workers and 26 weeks for part-time workers (of minimum 2 working days per week)
-Approved Business Plan or CBA is required
-Daily supplement paid by the employer

3. New “Transitional” economic temporary unemployment scheme for white-collar worker
Conditions-
The firm must prove a loss in turnover or production by at least 10%
Offer two training days per month to employees.

Application process-
A new CBA or Business Plan must be drawn. Business Plans must be submitted to the FPS but does not need approval.
Submit a C160A form to the NEO.

Formalities during use-
Notify the NEO and all employees a minimum of one week before starting date of unemployment. This can be done electronically via
www.socialsecurity.be
Communicate the economic reasons to support your application to either the Work Council or Trade Union Delegation.
Keep record in a validation book.
Deliver a C3.2A form to each employee an notify the NEO before the first day of unemployment every month.
A daily supplement of €5 is required.

Advantages & disadvantages-
+Maximum of 24 calendar weeks for full-time worker and 34 weeks for part-time workers (of minimum 2 working days per week).
+No approved Business Plan required.
-2 training day required per month.
-Only valid until the 31st of December.
-Daily supplement paid by the employer
.

4. Economic temporary unemployment scheme for blue-collar workers
Conditions-
The firm must be in economic difficulties due to an external problem e.g. The Coronavirus.

Application process-
Inform the NEO.

Formalities during use-
Notify the NEO and all employees a minimum of one week before starting date of unemployment. This can be done electronically via: 
www.socialsecurity.be.
Communicate the economic reasons to support your application to either the Work Council or Trade Union Delegation.
Keep record in a validation book.
Deliver a C3.2A form to each employee an notify the NEO before the first day of unemployment every month.
A daily supplement of €2 is required.

Advantages & disadvantages-
+Few formalities.
+Maximum of 4 weeks for full-time workers and 18 weeks for part-time workers (of minimum 3 working days per week).
+Small suspension also available for up to 12 months (of minimum 3 working days per week).
-Only valid until the 31st of December.
-Daily supplement paid by the employer.

5. “Normal” temporary unemployment scheme for force majeure
Conditions-
Unforeseen, unexpected event independent of the will of all parties.

Application process-
Notify the NEO and all employees a minimum of one week before starting date of unemployment. This can be done electronically via: 
www.socialsecurity.be.

Formalities during use-
Deliver a C3.2.A form to the employee concerned.

Advantages & disadvantages-
+Notice period is suspended.
-Case specific.


We hope that with this information, you will now find the temporary unemployment scheme that suits you and your company best.


Here at the British Chamber of Commerce, we will continue to update you with the necessary information to help all our members to succeed. 
We are all in this together, and with the right plans in place, consumer confidence can be restored. BritCham offers support, guidance and specialised coverage for both Brexit and COVID-19, including webinars, workshops and events that will give your firm the tools it needs to navigate through this challenging period. Click here to register: https://www.britishchamber.be/upcoming-events

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