The corona end-of-career time credit has come into effect

On 1 July 2020, Royal Decree no 46 of 26 June 2020 introduced a new measure for companies recognised as being in restructuring or in difficulty: the corona end-of-career time credit.

For which employers?

The corona end-of-career time credit is introduced for private sector employers whose company has been recognised by the Minister of Labour as being in restructuring or in difficulty. This recognition shall be given in accordance with the criteria laid down in the regulations on unemployment with company allowance, but without the need for a collective labour agreement.

In the context of the corona end-of-career time credit, this recognition must take place on 1 March 2020 at the earliest and on 31 December 2020 at the latest.

What is it about?

The (ordinary) end-of-career time credit offers the employee the possibility to reduce his work to a half-time job or by 1/5 until his retirement age.

For employees of companies recognised as being in restructuring or in difficulty, the corona end-of-career time credit makes it possible to derogate from the age condition of 60 in order to obtain an interruption benefit at the expense of the ONEm/RVA.  In concrete terms, this is a flexible measure that makes it possible to obtain an interruption benefit from the age of 55.

Right with the employer

The age and employment conditions, the terms and conditions and the application procedure for obtaining the corona end-of-career time credit with the employer are identical to those for the ordinary end-of-career time credit.

Contrary to the ordinary end-of-career time credit, the corona end-of-career time credit can be requested for a minimum duration of 1 month, both for the reduction of work to a half-time job as for the reduction of work by 1/5.

No maximum duration has been set. This means that the corona end-of-career time credit can be requested until retirement is reached.

Entitlement to a benefit from the ONEm/RVA

In order to be entitled to a benefit from the ONEm/RVA in the context of the corona end-of-career time credit, the employee must be at least 55 years of age and have a professional history of at least 25 years as a wage-earner.

In addition, the starting date of the reduction in work must be within the period during which the company is recognised as being in restructuring or in difficulty. This period of recognition shall begin on 1 March 2020 at the earliest and on 31 December 2020 at the latest.

Important! The corona end-of-career time credit benefits may be maintained until after the end of the period in which the company is recognised as being in restructuring or in difficulty.

The amount of the interruption benefit at the expense of the ONEm/RVA in the context of the corona end-of-career time credit is identical to the amount granted in the case of an ordinary end-of-career time credit.

Benefit application procedure

The corona end-of-career time credit benefit must be applied for using the form 'C61-Crédit-temps fin de carrière corona' (an online application is not possible).

The employee completes part 1, the employer completes part 2.

The employee must send the form, duly completed, signed and accompanied by a copy of the recognition of the company as being in restructuring or in difficulty, by registered letter to the local office of the ONEm/RVA on which he depends.

The application must be made no later than 2 months after the start date of the corona end-of-career time credit.

Entry into force

This measure became effective on 1 July 2020.

Sources: Royal Decree no 46 of 26 June 2020 implementing Article 5, § 1, 5° of the Act of 27 March 2020 authorising the King to take measures in the fight against the spread of the coronavirus Covid-19 (II) to support the employers and the employees, Belgian Official Gazette of 1 July 2020; ONEm/RVA.