Abolition of the reimbursement of the outplacement compensation

Author: Laurence Philippe (Legal Expert)
Read time: 2min
Publication date: 04/01/2023 - 13:39
Latest update: 04/01/2023 - 13:40

During the budgetary discussions last October, the federal government took several measures to cut spending. One is the elimination of the reimbursement of the outplacement compensation.

Outplacement compensation

The employer who proceeds to collective redundancies must establish an employment cell under certain conditions. When the employer undergoing restructuring establishes an employment cell, he must pay a 3-month or 6-month outplacement compensation for employees under 45 years of age or over 45 years of age with at least one year of seniority on the date of the announcement of the collective redundancies. 

When the length of the employee's notice period was less than 3 or 6 months, the employer could be reimbursed by the ONEm/RVA for the difference between the cost of the outplacement compensation paid and the cost of the payment in lieu of notice due.

Abolition of the reimbursement of the outplacement compensation

The Programme Act of 26 December 2022 abolished the reimbursement that employers could obtain.

This measure will take effect from 1 January 2023 for companies announcing collective redundancies. Companies that had already announced collective redundancies before this date will continue to be entitled to the reimbursement for redundancies that have yet to occur.

Source: Programme Act of 26 December 2022, Belgian Official Gazette of 30 December 2022.

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