Extension of the Simplified procedure for economic unemployment until 30 june 2025
The simplified procedure for economic unemployment, initially set up at the start of the Corona crisis, is still available for employers, subject to the qualifying conditions below.
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Available to whom?
A company qualifies for the simplified procedure for economic unemployment if it can demonstrate:
- • a 10% decline in turnover or production in one of the four quarters preceding the quarter in which the company wishes to introduce economic unemployment; or
- • a 10% temporary unemployment already applied to blue-collar workers during the quarter preceding the request.
How to prove the 10% decline in turnover or production?
This decline must be established compared to the to the same quarter of one of the two calendar years preceding the application (the “reference quarter"). The following formula applies:
the turnover/production of the reference quarter ≤ 0.9 * the turnover/production of the corresponding quarter of one of the 2 calendar years preceding the application
The proof of the drop in turnover must be established on the basis of the VAT returns.
The proof of the drop in production must be established by the submission of a file evidencing, in addition to the VAT declarations of the relevant quarters concerned, the required decrease in production and explain the calculation method used to weigh the importance of the various products in the production process and the thereto related decrease in productive working hours of the employees.
What is the allowed duration of the economic unemployment?
The economic unemployment can either extend to a full suspension of maximum 16 calendar weeks per year, or a partial suspension with at least 2 working days/week and maximum 26 calendar weeks per year.
Do you want to know if you can apply the simplified procedure for economic unemployment in your company?
Your account manager at Panis / Panis Van Moppes can check if the financial conditions for your company are met. If so, and to the extent our payroll department takes care of your payroll administration, your account manager will dispatch your file internally. Our payroll department will liaise back with you and guide you through the procedure.
DISCLAIMER Our newsletters are purely informative and should in no way be considered legal, tax or other advice. Please contact us in the context of any interpretation or application of the information contained in this newsletter, especially as legal and tax regulations change regularly.