Lorenz

Brussels Bishkek Geneva

Rightsizing The
Workforce

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Brussels Bishkek Geneva

The Belgian, UK And US

Perspective
Outline of the regime on collective dismissal
in Belgium compared to the UK and US.

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Brussels Bishkek Geneva

What is collective dismissal?

What triggers the information and consultation obligation?

What is the projected timeframe?

What are the penalties involved?

What is the pricetag?

What other legal risks might arise?

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Brussels Bishkek Geneva

What
is collective
Belgium
Dismissaldismissal?
for a reason not related to the

employees performance or competence.

Note that other legislation will apply in case the
collective dismissal is also accompanied by the
dismissal of (nearly) all employees or in case of
termination of the activities of the company (or a
specific department thereof)

UK

Cessation or diminution in work individual

Dismissal for a reason not related to the employee collective

USA

No statutory definition
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What triggers the information and consultation

obligation?

Belgium

If it is contemplated to dismiss in a period of 60 days:

- 10 or more (workforce 20-99)
- 10% or more of all employees (workforce 100-299)
- 30 employees (workforce over 300)

UK

Dismissal of 20 or more employees in a period of 90 days

USA

Union context only. WARN employers with 100 employees

60 days notice where 50 or more employees affected within

30-day period.
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What is the projectected timeframe?

Belgium

No statutory time table. Usually at least one month up to three

months on average. Notice cannot be served until a 30-day
cooling-off period following the consultation period expires.

UK

If 20 or more dismissals, 30 days. If 100 or more dismissals,

90 days. Notice cannot be served until consultation period
expires.

USA

As provided in the Union contract.

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Brussels Bishkek Geneva

Information
and consultationand
concerning
the option for collective
What
is information
consultation?

dismissal
which is considered, including:
- The reasons for the dismissal
- The number of employees to be dismissed
- Alternatives to redundancy
- Mitigation of the effects of redundancy
Selection Criteria
Severance packages
Employee representative opinion
Other?
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Belgium

Dismissals are null and void. If terminated, employees can claim

re-instatement and salary for the period between re-instatement and
valid dismissal.

UK

90 days gross pay per affected employee.

USA

As provided in the Union contract. Back pay and benefits up to a

maximum of 60 days.

What are the penalties involved?

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Brussels Bishkek Geneva

What
is the Notice
pricetag?
Belgium
/ indemnities in lieu of notice; holiday pay; statutory collective

dismissal premium; financial obligations based on sector specific

collective bargaining agreements and / or a social plan negotiated
with the trade unions.

UK

Notice / indemnities in lieu of notice (contractual or statutory);

holiday pay; contractual or statutory redundancy pay (statutory
redundancy pay up to 10.500 based on age, length of service and
a weeks pay).

USA

Employees can waive WARN rights in exchange for adequate

consideration (pay in lieu of notice ).
Some states provide better protection for employees.
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Brussels Bishkek Geneva

What other legal risks may arise?

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Brussels Bishkek Geneva

Conclusion

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Brussels Bishkek Geneva

Lorenz HR Department
Troonstraat 14-16 B.5 Rue du Trne
1000 Brussels
Belgium

Bert Theeuwes
Partner

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