Dismissal due to business reasons in Belgium

AutorPieter Pecinovsky
CargoPhD Researcher, Institute for Labour Law, Leuven University
Páginas6-20
IUSLabor 1/2018
DISMISSAL DUE TO BUSINESS REASONS IN BELGIUM
Pieter Pecinovsky
PhD Researcher, Institute for Labour Law, Leuven University
Introduction
Dismissals due to business reasons are mostly connected to collective redundancies. In
2017, 62 companies started the information and consultation procedure (with an
announcement) which is obliged in case of collective redundancies, 3829 employees
were involved (916 in Brussels, 2193 in Flanders and 720 in Wallonia). Compared to
the record years of 2012-2013, we see a decrease of 77% in the number of redundancies
announced (2012 - 16707 redundancies) and almost 50% fewer procedures (2013 - 132
procedures). The metal production industry was affected the most, with collective
redundancies relating to 1147 employees (the same sector was affected most in 2013).
67 companies ended the information and consultation procedure in 2017, resulting in
6790 dismissed employees (1862 in Brussels, 2190 in Flanders and 2853 in Wallonia),
while at the start of the procedure 8124 jobs were threatened. The procedure thus might
have saved 1334 jobs. In the metal production sector, 2079 employees lost their
employment in 2017, leaving the other sectors far behind mostly thanks to the closing of
the Caterpillar Factory in Charleroi. This also resulted in the fact that men were more
affected than women by collective redundancies. The Financial sector was second with
1156 redundancies caused by the closing of bank offices by ING Bank. (Statistics of
Federal Government Service of Work Labour and Social Dialogue / FOD WASO,
www.werk.belgie.be/defaultTab.aspx?id=30532 )
1. How are the causes that justify a redundancy or a dismissal due to business
reasons defined?
The Belgian legal system does not differentiate specific causes for a dismissal. The
main distinction is between a normal dismissal with compensation (period of notice or
termination fee) and a dismissal with urgent cause (without period of notice or
termination fee). A dismissal because of business reasons will fall under the normal
dismissal with compensation because “urgent cause” demands that the employee
himself gave urgent cause to his dismissal.
However the Belgian legal system knows the notion of “economical and technical
reasons” as a valid cause to dismiss protected employees (like worker’s representatives)
and is also important in case of collective redundancies and at the closure of (a branch
of) an enterprise. The laws ruling these subjects do not contain any definition for

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