Crisis premium: who pays?

If an employer wishes to dismiss a blue-collar worker during the period 1 January 2010 - 1 July 2010, the employee is entitled, along with the ordinary termination indemnities, to an additional dismissal indemnity, the so-called crisis premium.

This crisis premium is not due (1) if the blue collar worker resigns, (2) if the worker has been dismissed during a collective dismissal procedure, (3) or during his trial period or (4) when the worker has been dismissed to take his pension or bridge pension.

The crisis premium amounts to 1,666.00 EUR for full time workers (part time workers receive a crisis premium in accordance with the actual time worked). The RVA/ONEM will bear 2/3rd (1,111.00 EUR) of the costs and the employer will have to pay the remaining amount (555.00 EUR). The amount of 555.00 EUR must be paid at the moment the employment contract effectively ends. Neither taxes nor social security contributions are due on this amount.

In some cases, the employer does not even have to pay this amount, namely (1) if one of the temporary crisis measures is applicable within the company (for ex. crisis time credit or temporary collective work time reduction), or (2) if the blue collar worker has been temporary unemployed (4 weeks of temporary unemployment for workers with less than 20 years of seniority, 8 weeks for workers with at least 20 years of seniority) or (3) in the case of small businesses (with less than 10 employees) faced with economic problems and having requested an exemption.

Special attention should be paid to the fact that the employer will have to pay the full amount of 1,666.00 EUR if the worker has been dismissed without having been informed by registered letter or by a bailiff’s writ. In other words: this special formality must be respected by all means.