want to know more about our services or want to chat with our experts? Visit one of our offices near you.
Increase your chances of success with our experts' help.
Our experts will give you the answers you seek.
Alter your business details via our one-stop shop for entrepreneurs.
Discover our practical tool for your social insurance dossier.
Want to know more about our services or want to chat with our experts? Visit one of our offices near you.
and reap the benefits of our social secretariat's support.
Take advantage of Partena Professional's expertise and knowledge
Discover the benefits we can give you as an accountant.
A measure that was pushed out by the series of corona aid measures, but which may gain in importance after September 30.
Temporary reduction of working time is one of the three aid measures to help cushion the impact of the Brexit, alongside a specific system of temporary unemployment or time credit.
A company can reduce the working time collectively and in this way respond to reduced production and/or turnover as a result of Brexit. The employees concerned receive a converted wage supplemented by a flat-rate wage compensation, which covers (all or part) of the wage loss and is financed by a temporary reduction in the employer's social security contributions.
Because of the flexible application of temporary unemployment due to corona, this form of working time reduction has remained unused, but that may change when corona unemployment ends on 30 September.
The measure is intended for private sector companies, which are experiencing economic difficulties as a result of the Brexit and which are compensating for their reduced activity through a temporary collective reduction in working time of 1/4 or 1/5 , whether or not combined with a four-day week.
‘Economic difficulties’ in this context means a decrease of at least 5% in turnover, production or number of orders as a result of Brexit.
A prior recognition by the Minister of Work is necessary. The application must be made to the FPS Work and provide proof of a decrease of at least 5% in turnover, production or number of orders as a result of Brexit. The FPS Work informs the NSSO of the decision and the period of recognition.
On the basis of the recognition, the reduction of working time is introduced:
The period of recognition can be between 22 March 2021 and 21 March 2022, i.e. the period of application of the regulations implementing the three Brexit measures. The period of working time reduction must fall entirely within the period of recognition.
The working time reduction is collective, for the entire company or for a specific category of employees. It is not allowed to implement it on an individual basis.
In principle, this involves a reduction of the full-time working hours. Part-time employees are not excluded, and can be included in the system depending on their employment fraction.
Only a reduction of 1/4 or 1/5 is allowed. A full-time working week of 38 hours can therefore be reduced to 30.40 hours or 28.50 hours.
Basis of departure is the average weekly working time of a full-time employee, determined by collective bargaining agreement or in the employment regulations. The reference is therefore the working time of the individual company, even if it is lower than in the collective bargaining agreement in the sector.
For full-time employees, there is the possibility of combining it with the temporary implementation of a four-day week and a higher target group reduction.
The basic amount of the reduction varies according to the extent of the working time reduction and (only for full-time employees) the possible combination with a four-day week.
The reduction in employers’ contributions is synchronized with the course of the working time reduction over the same period.
All the principles of target group reductions are applied:
The NSSO can recover the target group reduction if it is found that the employer does not observe the provisions regarding the working time (e.g. observation of work schedules, payment of overtime).
In principle, the working time reduction leads to a loss of wages, as wages are converted in accordance with the new (reduced) working time.
In order to compensate (at least partially) for this loss, the employer must use at least 3/4 of the basic amount of the target group reduction for wage compensation.
The wage compensation are wages subject to tax and social security deductions resp. contributions.
The basic amount of the wage compensation is calculated once at the beginning of the working time reduction, and remains constant throughout the period of application. The amount actually paid out is variable, as the basic amount is reduced pro rata the unpaid hours worked.
The gross sum of the reduced wage and wage compensation may not exceed the initial gross wage (prior to the working time reduction). This does not take into account any indexations or adjustments of wage scales that have been complied with. Wage compensation shall in any event be capped at this maximum.
In the event of a dismissal by the employer, the severance pay must be calculated on the basis of full-time wage without the reduction
The government's interpretation of this type of measures has always been that the (initially) full-time employees continue to be considered as full-time employees and are declared to the NSSO on a full-time basis. This also means, for example, that they retain the right to the sector/company's full-time minimum wage even if their working time is reduced by 1/4 or 1/5. An important point, which will cause the real cost for the employer to go up if the wage compensation is not sufficient to guarantee the full-time minimum wage.
Source:
The Partena Professional website is a channel for making information available in an understandable form to affiliated members and non-members. Partena Professional strives to provide up-to-date information and this information is compiled with the greatest care (including in the form of Infoflashes). However, as social and fiscal legislation is constantly changing, Partena Professional cannot accept any liability for the correctness, the up-to-date or the completeness of the information consulted or exchanged via this website. Further provisions can be read in our general disclaimer that applies to every consultation of this website. By consulting this website, you expressly accept the provisions of this disclaimer. Partena Professional can unilaterally change the content of this disclaimer.