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change to notice period when higher-scale employees are dismissed or resign, from 28 october 2023

Legal
20 June 2023

by Ellen Verstraete

Change to notice period when higher-scale employees are dismissed or resign, from 28 October 2023

The Law of 20 March 2023 was published in the Belgian Official Gazette on 28 April 2023. That law means that from 28 October 2023 – six months following the publication in the Belgian Official Gazette – a new calculation method is to apply when higher-scale employees, whose employment contract commenced prior to 1 January 2024, are dismissed or resign.

A person is gathering his things in the office

First change: no longer any two-step rule and a maximum of 13 weeks in the case of the employee resigning.

Situation until 28 October 2023

The notice period of an employee tendering their resignation and who entered employment with the employer prior to 1 January 2014 is calculated in two steps. The first step covers the notice period taking into account the employee's seniority and status on 31 December 2013. The second step covers the notice period taking into account seniority from 1 January 2014. New notice periods apply to the second step, which have been introduced into the Employment Contract Act by the Unit Status Law.

The total notice period to be observed is equal to the sum of the notice periods from step one and step two. However, if that sum amounts to more than 13 weeks, the total notice period is limited to a maximum of 13 weeks. 

Moreover, for a number of employees, the calculation of the second step must not even occur if we are already at the maximum notice period in step one. For lower-scale employees – employees who, on 31 December 2013, had an annual gross wage of € 32,254 or less – the maximum notice period is three months. For higher-scale employees, the maximum notice period is 4.5 months or six months, depending on whether the gross annual wage on 31 December 2023 amounted to more or less than € 64,508.

Situation from 28 October 2023

In the case of an employee resigning, the two-step rule described above will expire from 28 October 2023, and only the new notice periods will apply that are stipulated by the Unit Status Act in Article 37(2) of the Employment Contract Act. This means that the notice period will never amount to more than 13 weeks. The longer notice periods for higher-scale employees will therefore no longer apply.

Second change: cancellation of differing rules for higher-scale employees with step one, in the case of dismissal.

Situation prior to 28 October 2023

When calculating the first step of the notice period in the case of the employer dismissing employees who were engaged prior to 1 January, there is a difference between lower-scale employees and higher-scale employees. For a lower-scale employee, step one of the notice period is equal to three months for each five-year seniority period commenced. For higher-scale employees – employees whose gross annual wage is more than € 32,254 – the calculation of step 1 is equal to one month for each seniority year commenced, with a minimum of three months.

Situation from 28 October 2023

In the case of dismissal by the employer, step 1 of the notice period will be set for all employees at three months for each five-year seniority period commenced. This consequently means that the special rule for higher-scale employees stipulating that the notice period is equal to one month for each seniority year commenced with a maximum of three months is expiring. In the event a valid agreement on the notice period was concluded with the higher-scale employee, that agreement must also be taken into account in order to determine the notice period of step 1. Moreover, we can ask the question whether or not the Claeys form will be called on once again.

If you have any questions, please get in touch with one of our experts at contact@vdl.be.