Time credit: new developments in 2017!

A new Collective Labour Agreement (JLA) on time credit was entered into on 20 December 2016. It is JLA No. 103ter, which amends JLA No. 103 to bring it into compliance with the measures on time credit contained in the draft Feasible and Workable Work Act.

The new provisions contained in JLA No.103ter will enter into force on 1 April 2017 at the latest. Below is our analysis of the main provisions.

Extension of the duration of time credit "on specific grounds"

Currently

JLA No.103 provides that workers are entitled to time credit "on specific grounds" for a maximum period of 36 monthsif the time credit is justified on one of the following grounds:

• caring for a child under the age of 8,
• providing palliative care,
• providing assistance or care to a member of the household or the family with a serious illness,
• receiving training.

In addition, JLA No.103 provides that workers are entitled to time credit "on specific grounds" for a maximum period of 48 months if the time credit is justified on one of the following grounds :

• caring for a disabled child under the age of 21,
• providing assistance or care to their minor child with a serious illness or a minor child with a serious illness who is considered a member of the Household.

For this credit time "on specific grounds", the Royal Decree of 12 December 2001 provides that workers are entitled to career break allowances (paid by the ONEm) for a maximum period of 48 months, except as regards the time credit for receiving training for which the entitlement to career break allowances applies for a maximum period of 36 months.

Therefore, there is currently a discrepancy in terms duration between the entitlement to time credit "on specific grounds" (36 months) and the entitlement to career break allowances (48 months) as regards time credit on the following grounds:

• caring for a child under the age of 8,
• providing palliative care,
• providing assistance or care to a member of the household or the family with a serious illness.

By 1 April 2017 at the latest

JLA No.103ter provides that the entitlement to time credit "on specific grounds" on the ground of "care" will be extended to 51 months. This covers:

• caring for a child under the age of 8,
• providing palliative care,
• providing assistance or care to a member of the household or the family with a serious illness,
• caring for a disable child under the age of 21,
• providing assistance or care to their minor child with a serious illness or to a minor child with a serious illness who is considered a member of the Household.

Therefore, the maximum duration of 36 months is only maintained for time credit "on specific grounds" for the purpose of receiving training.

Please note! In order to avoid creating a new discrepancy in terms of duration between the entitlement to time credit "on specific grounds" on the ground of "care" (51 months) and the entitlement to the career break allowances (48 months), the Royal Decree of 12 December 2001 (which sets out the conditions for entitlement to career break allowances) will have to be amended (see below, under "Date of entry into force").

Repeal of the entitlement to "unconditional" time credit

Currently

JLA No.103 currently provides that workers are entitled to "unconditional" time credit for a maximum period of 12 months (in full-time equivalents).

However, the entitlement to career break allowances paid by the ONEm was abolished for "unconditional" time credit on 1 January 2015.

Workers are currently entitled to "unconditional" time credit but they are not entitled to career break allowances.

By 1 April 2017 at the latest

JLA No.103ter abrogates the entitlement to "unconditional" time credit.

Other news in brief

JLA No.103ter also provides for the following changes:

• new rules on deduction in order to determine the remaining number of months of time credit to which a worker is entitled if they have already taken periods of time credit (or career break periods) in the past;
• new rules for the calculation used to determine if the condition of 25-year working career as a salaried employee has been met in order to be entitled to "career wind-down" time credit;
• the entitlement for workers who have two part-time positions with two different employers to time credit in the form of a 1/5th reduction of social security contributions.

Please note! Some items of the Royal Decree of 12 December 2001 (which sets out the conditions for entitlement to career break allowances) will also need to be amended in order to align the rules on the granting of career break allowances with those on the entitlement to time credit (see below, under "Date of entry into force").

Date of entry into force

The new provisions contained in JLA No.103ter will apply to all applications (and applications for extension of) time credit submitted from the date of entry into force of JLA No.103ter.

JLA No.103ter will enter into force on the date on which the Royal Decree (amending the Royal Decree of 12 December 2001) aligning the rules on the entitlement to career break allowances with those on the entitlement to time credit (as provided for in JLA No.103 amended by JLA No.103ter) will enter into force and by 1 April 2017 at the latest.

Transitional measures have been provided for workers already entitled to time credit on the date of entry into force of JLA No.103ter.

Sources: Collective Labour Agreement No. 103ter amending Collective Labour Agreement No. 103 of 27 June 2012 establishing a system of time credit, reduction of working time and wind-down time jobs, http://www.cnt-nar.be; Royal Decree of 12 December 2001 enacted under Chapter IV of the Act of 10 August 2001 on reconciling employment and quality of life concerning the system of time credit, reduction of working time and the reduction of part-time hours, Belgian Official Gazette of 18 December 2001.