Collective Redundancy / Closure

What is collective redundancy?

The strict legislation on collective redundancies shall apply as soon as an employer affects within a continuous period of 60 calendar days at least the following number of employees:

  • 10 employees of a company employing on average more than 20 employees and fewer than 100 employees during the calendar year preceding the redundancy;
  • 10% of the employees of companies employing on average at least 100 and fewer than 300 employees during that calendar year;
  • 30 employees of companies employing an average of at least 300 employees during that calendar year.

Please note:

  • in this instance, a company should be understood as a technical business unit and not a legal entity;
  • heads should be counted and not the number of full-time equivalents that are up for redundancy (the redundancy of a part-time employee is therefore considered as one single redundancy).

What procedures must be followed?

If an employer has the mere intention of implementing collective redundancies or closure, very strict legal information and consultation procedures must be followed. Failure to comply with these procedures may result in draconian measures, such as criminal prosecution, reimbursements of subsidies and additional compensation to dismissed employees. Above all, non-compliance leads to extremely soured social relationships and serious damage to the company’s reputation.

How do we proceed?

Considering the intensely interwoven nature of collective redundancy or possible closure involving human relationships, the emphasis on psychological, emotional, social and strategic aspects of a restructuring situation is just as crucial as the law itself.

That is why we stand shoulder to shoulder at the coalface and expand our legal team with experts in corporate communication, human resources and other disciplines where necessary.

We closely follow a road map that has been worked out down to the smallest detail in order to avoid the many potential hurdles and setbacks in the event of collective redundancy. We follow rigorous planning, follow up, anticipate, anticipate and complete the entire process in constant consultation with the management team of the company in question. In doing so, we also dare to take our responsibility.

Some references of restructurings that were supervised by our team: Aleris Aluminium, American Airlines, Bong, BRC, Mondi, Plastiflex, …

Our expertise in collective redundancy/closure

These matters hold no secrets for our specialists in collective redundancy/closure:

  • Risk analysis and cost estimation of collective redundancy/closure
  • Information and advisory procedure laid down in collective agreement No. 24
  • the Renault Law
  • Announcement of collective redundancy/closure
  • Develop social support plan
  • Special protection of employees against dismissal (Act of 13 February 1998)
  • Social dialogue with employee and employer delegates
  • Drawing up crystal-clear collective agreements
  • SWT (regime of unemployment with company allowance)
  • Compensation for collective redundancy/closure
  • Strikes and lock-outs
  • Company in difficulties/being restructured
  • Employment Unit
  • External stakeholders, such as VDAB/FOREM, Cevora, FPS Employment
  • Redundancy schemes
  • Closure fund

Clear and concise advice, delivered with passion

We provide clear and concise advice, protect your interests with a passion in court proceedings, assist you in investigations by inspectorates and conduct negotiations at every level.


Don’t hesitate to contact us