Change to notice periods for workers
With effect from 12 April 2011, new legislation modified the length of the notice periods for workers whose employment began after 31 December 2011.
The minimum notice periods for terminating the employment of blue collar workers have been increased by 15%: click here to view table.
The notice period for terminating the employment of white collar workers whose gross annual remuneration exceeds 31,467 EUR (anno 2012) has now been reduced by 3% to 30 days per year of seniority: click here to view table.
Notice periods to be given by a resigning employee have also been increased: Click here to view table.
New employer’s contribution to the Fund of Closing of Undertakings
From 1 January 2012, when terminating the employment agreement of a white collar worker whose gross annual remuneration exceeds 62.934 EUR, employers must contribute a sum equal to 3% of the termination cost to the Fund of Closing of Undertakings. A Royal Decree must still provide for the specific modalities and terms of payment of this new contribution.
New (limited) tax exemption
Upon termination of an employment agreement after 1 January 2012, salary paid during the notice period or the termination indemnity will be exempt from taxes up to an amount of 615 EUR (for the 2012 year). This amount will be updated annually in accordance with the consumer index and from 1 January 2014, the amount will be doubled.
New method for valuation of the taxable benefit in kind from the use of a company car
From 1 January 2012, the taxable value of a company car will be determined by application of a formula based on the catalogue value of the car. This is calculated based on the price invoiced including VAT, the cost of any and all options without taking into consideration the eventually awarded price reduction(s) as well as the CO² value of the exhaust gasses produced by the car.
Click here to view table.
Measures to keep older workers at work
The new government has decided to amend the pension rules in an effort to keep older workers at work.
Among these amendments, for early retirement pension allowances claimed after 1 January 2013, the minimum age for early retirement (currently at 60) will be increased by 6 months each year, so that it is 62 by the year 2016. Also, the minimum length of a professional career needed to claim the benefit of early retirement (currently 35) will be increased to 38 in 2013, 39 in 2014 and to 40 from 2015.
Conventional bridge pension is renamed “Unemployment with extra company allowance”
This new name more closely reflects what it is — i.e. a system of unemployment benefit whereby after termination of their employment, older employees who meet conditions of age and length of professional career are entitled to receive an extra allowance from their previous employer in addition to the legal unemployment benefits paid out to them by the state. Recipients of this payment will now be encouraged actively to continue to look for a new job while retaining the benefit of the extra allowance payable by the former employer.