Collective breakdown in agreement

Verified 05 December 2023 - Legal and Administrative Information Directorate (Prime Minister)

The collective breach of agreement is a means of termination of the contract of employment of indefinite duration carried out in the context of a collective agreement. This is a particular mode of disruption, apart from any dismissal and resignation. We are taking stock of the regulations.

The collective breach of agreement is implemented as part of a company collective agreement.

L'informed employer, by dematerialized means, the Dreets: titleContent of theopening of negotiations for the conclusion of a collective agreement breaking collective agreement:

Collective breaks in employment contracts portal (RUPCO)

The collective agreement must obligatory indicate the following

  • Formalism and conditions for informing the Social and Economic Committee (ESC), if it exists
  • Maximum number of planned departures, associated job losses and duration of collective breakdown
  • Conditions to be fulfilled by the employee in order to benefit from it
  • Conditions for the submission and examination of applications from employees
  • Conditions for concluding an individual termination agreement between the employer and the employee and for exercising the right of withdrawal of the parties
  • Criteria for separation between candidates at departure
  • Method of calculating severance pay guaranteed to the employee (may not be less than statutory severance pay)
  • Accompanying measures and external redeployment of employees to equivalent jobs (e.g.:mobility leave, validation of experience)
  • Follow-up clauses to the agreement

The employer shall forward the content of the agreement to the Dreets: titleContent via the portal of collective breaks of employment contracts (RUPCO):

Collective breaks in employment contracts portal (RUPCO)

The Dreets: titleContent decide on the request for validation of the collective agreement in a 15 days from receipt of the agreement.

Rules differ depending on the response of the Dreets: titleContent :

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Validation of the agreement by Dreets

The validation decision by the Dreets: titleContent of the collective agreement is brought to the attention of the employees.

This information may be provided by means of a display or any other means allowing a certain date to be given.

Refusal of validation by Dreets

In case of refusal of validation, a new agreement may be negotiated.

The ESC: titleContent shall be informed of the resumption of negotiations.

The new agreement takes into account the reasons accompanying the decision of the Dreets: titleContent.

It shall be transmitted under the same conditions as the first agreement.

Lack of response of Dreets

Lack of response by Dreets: titleContent at the end of the 15 days shall be equivalent to a validation decision.

A copy of the application for the collective agreement terminating the collective agreement and of the acknowledgement of receipt by the Dreets: titleContent shall be brought to the attention of employees.

This information may be provided by means of a display or any other means allowing a certain date to be given.

The collective contractual breakdown is open only to the employee in DTA: titleContent.

The mechanism does not apply to employees in CSD: titleContent, in temporary employment contract (interim), or apprenticeship contract.

The collective agreement determines the conditions which employees must complete to benefit from the collective agreement breakup mechanism.

As soon as the agreement collective agreement breakdown is validated, employees concerned may propose their application for an amicable termination of the contract of employment.

The request is made in writing under the conditions laid down in the Agreement.

Yeah. Yeah. The employer may refuse an employee's application on objective grounds. For example, if the employee does not fulfill the conditions laid down in the agreement or if number of employees who want a break is above the maximum number of departures envisaged.

The candidates for departure are divided according to criteria laid down in the agreement breaking collective agreement.

The procedure for terminating the employment contract varies according to whether the employee is sheltered or not.

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General case

The employer's acceptance of the employee's application in the context of the collective breach of contract shall entail termination of the contract of employment by mutual agreement between the parties.

An employee whose application is accepted by the employer shall sign a individual breakdown agreement.

Protected employee

The termination of the employment contract of a protected employee who applies for employment in the context of a collective agreement is subject to the authorization of the labor inspector.

The application to the labor inspector shall be made under the same conditions as dismissal of a protected employee.

The termination of the employment contract may take place the day following the day of authorization by the labor inspector.

The employer and the employee shall be entitled to right of withdrawal (right to reverse decision) under the conditions laid down in the collective agreement.

Severance pay in connection with collective agreement breakup

The employee shall be entitled to a severance pay which may not be less than statutory severance pay.

The calculation of the allowance varies according to the employee's seniority and remuneration,collective agreement termination agreement specifies the calculation of compensation.

Other allowances

The employee is entitled to all the remuneration elements due by the employer on the date of termination of the employment contract (salary, bonuses, etc.).

He receives a compensatory allowance for paid leave, if he has not taken all the leave accrued on the date of termination of the contract.

Compensation paid in connection with a collective agreement breakdown shall be exempt from social contributions up to a maximum of 2 times the annual social security ceiling (i.e €87,984).

Compensation paid under a collective agreement is exempt from income tax in its entirety.

The employer must provide the employee with the following documents:

If the employee meets the conditions, it may benefit from Return to Employment Assistance (RWA).

The employee has 12 months from the termination of the contract of employment in the context of the collective agreement breach to refer the matter to the Labor Council (CPH).

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