News Tax and Labour Law

Monday, 03 January 2011 09:26

Crisis measures extended again till 31 January 2011

Following a third extension to the crisis measures until 31 December 2010, the Ministerial Committee agreed on 22 December to again extend the crisis measures until 31 January 2011.

The extension – still based on a finding that, since being introduced, the measures have been implemented by numerous companies, and have thus saved a large number of jobs – has been decided until the conclusion of the interprofessional agreement 2011-2012.

Here is a summary of these crisis measures:

1. Crisis reduction of working timeof 1/4 or 1/5 for a determined period, to be introduced by a company CBA. For the workers reducing their working time, the employer is entitled to a reduction of the social security contributions. [click here our previous newsletter of the 1st of July 2009].

2. For undertakings in difficulty, two measures, to be introduced either by a CBA concluded within the sector or the company, or by a company plan, are foreseen:

a. The “crisis time credit” of 1/5 or of 1/2 for a minimum period of 1month and amaximum period of 6 months. In return for reducing his/her working time, the employee receives an allowance paid by the ONEm (“Employment National Office”);

b. A temporary full or partial suspension of performance of the employment contract for white-collar employees, during maximum 16 weeks for a full suspension and maximum 26 weeks for a partial suspension. The employees affected receive an allowance paid by the ONEM (“National Employment Office”) and a supplement paid by the employer [click here our previous newsletter of the 1st of July 2009]

3. Crisis bonus: bonus of 1666 Euros in principle partly paid by the ONEM (1111 Euros) and the employer (555 Euros) for every dismissed blue-collar worker. [click here our previous newsletter the 30 September 2010]

4. The “reorganisation card” for workers of undertakings in bankruptcy: this card allows a reduction of both the employer and the employee’s social security contributions when these workers are engaged by a new employer.