We are constantly monitoring the legal evolutions in this field and will continue to update this page: last update 09/04/2020
Have a look at our FAQ to find more information on temporary unemployment due to coronavirus.
Introduction
Belgian companies can be severely affected by the COVID-19 outbreak in several ways:
- The workers might be forced to quarantine themselves.
- The workplace has to close down in order to prevent the further spread of the virus (mandatory or not).
- The majority of the employees become ill.
- The company does not receive enough supplies to continue its production or provision of services.
- The company is experiencing a decrease in turnover because customers are staying away or the company does not receive new orders.
- Etc.
In such cases, the company could get into financial problems if they need to continue to pay the employees, while experience a steep decline in turnover. Such a financial shock can be partly absorbed by the system of temporary unemployment. Belgium has several systems of temporary unemployment, which are supervised by the National Employment Office (RVA / ONEM). The two relevant systems are:
- temporary unemployment because of force majeure; and
- temporary unemployment because of economic reasons.
Due to the high number of applications, the Government has decided on 20/03/2020 to simplify the procedure and to open up the system for force majeure to all situations related to the coronavrus.
The single "Coronaprocedure"
As of 13/03/2020, all temporary unemployment resulting from the coronavirus can be considered as temporary unemployment due to force majeure.
If the temporary unemployment is not due to the coronavirus, your employer can still invoke the system of temporary unemployment for economic reasons.
This means that a situation does not, any longer, need to be classified as a factual situation of force majeure to fall under the system of force majeure.
The National Employment Office lists the following examples of situations for which hte employer can invoke temporary unemployment due to the coronavirus:
- An employee who, for personal reasons (e.g. holidays) or for professional reasons (e.g. a business trip) stays in a country affected by the coronavirus and who, at the end of his stay, is not allowed to return to Belgium (e.g. due to a flight ban or quarantine) and therefore cannot resume work with his employer on the agreed date.
- An employee who has visited a country affected by the coronavirus and who has returned to Belgium but who, on arrival in Belgium, has been placed in quarantine by a competent authority and cannot therefore resume work with his employer on the agreed date.
- Belgian companies affected by the consequences of the coronavirus, for example because they are dependent on suppliers, and are unable to employ their staff because production is at a standstill.
- Personnel from the catering sector (cafés, restaurants), cinemas, theatres, shops and non-essential commercial establishments which have closed down or have temporarily reduced their activities due to government measures to prevent the spread of the coronavirus (lockdown).
- Companies that (partially) close because they do not have teleworkable tasks for (all) their employees and cannot respect the social distancing measures for the exercise of their work and organised transport (e.g. in the construction sector).
- Employers who have already applied for temporary unemployment for economic reasons due to the coronavirus and who are now affected by government measures can also apply for temporary unemployment for force majeure.
- Workers employed in the context of recreational, cultural or sporting activities that have been cancelled by the government or postponed by the organisers.
- Schools which are no longer able to employ all or part of their contractual staff (administrative staff, etc.) due to the suspension of classes or the low level of attendance at reception (due to strict sanitary measures).
In case of force majeure, a company does not have to be completely closed down. In practice, this means that some employees may be temporarily unemployed and others may not. Workers can also alternate days of unemployment and working days. But this only refers to full working days. It is not possible to alternate between a half day at work and a half day on temporary unemployment.
Scope
The procedure for force majeure is open for:
- blue-collar and white-collar workers (from the private sector, the public sector and the non-profit sector);
- temporary agency workers during the duration of their temporary contract (renewable if necessary);
- staff working in educational establishments;
- apprentices on onccupational training (mainly apprentices on professional training contracts in the French Community and on professional training contracts in the Flemish Community).
However, do not fall under its scope:
- civil servants
- students
Procedure
The employer also no longer needs to apply for the system of temporary unemployment (previously an application was necessary through the digital social security portal).
However, the employer should still submit as soon as possible an electronic declaration ASR scenario 5 for the temporarily unemployed workers on the social security portal. In this electronic declaration you have to mention force majeure and coronavirus as the reason for the temporary unemployment.
On the basis of this ASR scenario 5, the payment institutions (Trade unions) and the National Employment Office will be able to determine the amount of the benefits for the temporarily unemployed. The employer does not have to wait until the end of the month (which used to be the case), but has to do this, as soon as all the details are known until the end of the month.The sooner this declaration is submitted, the sooner the employees will receive their benefits.
Exceptionally, the employer does not have to provide a monthly control form C3.2A to every temporarily unemployed worker for the months March, April, May and June 2020. During these 4 months, the temporarily unemployed workers will be exempted from the obligation to be in possession of a C3.2A card. This also applies to workers employed in the construction sector.
Changing to force majeure when the employer already applied for temporary unemployment due to economic reasons
If the temporary unemployment is related to the coronavirus and the employer already sent a notice of temporary unemployment for economic reasons for the employees, the employer can, if he wished, switch to the scheme of temporary unemployment for force majeure (motive: coronavirus). For this purpose, you indicate 'force majeure' as the reason for the temporary unemployment in the ASR scenario 5.
If you state 'economic reasons' as a reason for the temporary unemployment in the ASR scenario 5, you remain in the system of temporary unemployment for economic reasons.
Unemployment allowance
In case of temporary unemployment due to force majeure, the employee is exempted from waiting time. Therefore, he does not have to prove a number of working days before he is entitled to benefits. The employee receives 65% of his average capped salary (capped at EUR 2,754.76 per month). Until 30 June 2020, the amount of the benefit is temporarily increased to 70% of the average capped salary. On top of this the Government will add a supplement of EUR 5.63 per day on top of the unemployment benefit, at the expense of the National Employment Office. A withholding tax on professional income of 26.75% will be deducted from the benefit.
More information
For more information on the procedure and conditions, please read the website of the National Employment Office (Dutch or French).
For more information about the legal implactions in other countries, visit the special L&E Global website: Coronavirus in a Flash.
If you have questions about temporary unemployment or other corona-related issues, our lawyers will be happy to assist you further.
This publication may not deal with every topic within its scope nor cover every aspect of the topics with which it deals. It is not designed to provide legal or other advice with regard to any specific case. Nothing stated in this document should be treated as an authoritative statement of the law on any particular aspect or in any specific case. Action should not be taken on this document alone. For specific advice, please contact a lawyer of our firm. The content is based on the law as of 23/03/2020.