Belgium: Short-time measure to deal with employment crisis

A new Belgian law, the 'Crisis Employment (Miscellaneous
Provisions) Act' has now come into force and will operate until the end of 2009 - with a probable second phase running to June 2010.This measure provides for companies to introduce, via a collective bargaining agreement, two possible approaches to the reduction in working time

* Companies may reduce working time for all or part of their workforce by between 20 percent and 25 percent. The resulting saving in wage costs will be further enhanced by a flat-rate reduction in social security contributions of between 600 and EUR 750 per quarter, which is further enhanced by EUR 400 if companies transfer to a 4-day week. 75 percent of the saving in contributions must, however, be passed on to employees.

* Companies experiencing a fall in orders of at least 20 percent in any quarter during the last twelve months (or facing an imminent drop in demand in the requirements for manual workers) may also negotiate a temporary reduction in working time of between 20 percent and 50 percent for a maximum period of 6 months. During the period of reduced working time, the employee may claim unemployment benefit on a pro-rata basis.

In addition, a company may unilaterally introduce a special scheme for white-collar employees. This involves the suspension of work contracts for up to 16 weeks or the reduction of weekly working time by a minimum of two days per week for up to 26 weeks in any calendar year. During the temporary layoff period, employees will be treated as part-time workers and qualify for partial salary top-ups through the unemployment benefit system.

In companies operating short-term work arrangements for manual workers, a supplementary allowance will also be payable by the company.

European Union: Extension of parental leave

A revised framework agreement on parental leave has now been signed by a number of EU employers' groups and the European Trade Union Congress. The agreement increases the duration of parental leave from three to four months and gives employees returning to work the right to request changes in their working hours, or other working conditions. It also guarantees that employees will not be subject to unfavourable treatment because they exercise their parental leave rights.

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