LIEDEKERKE HEADLINES LABOUR & EMPLOYMENT
The Claeys formula, which is often used as a guideline for determining the notice period, has been updated. The new version leads to slightly lower results, which is favourable for employers.
For white-collar employees with a gross annual salary exceeding 30.535 EUR (the so-called high-level employees), the law does not exactly state which notice period must be observed in case of dismissal. The so-called "adequate" notice period is often determined by means of formulas, of which the best-known is the Claeys formula. This formula, which is based on a statistical analysis of the case law of the labour tribunals and labour courts, has now been updated.
The new formula seems to lead to slightly lower results than the Claeys formula 2008. As was the case for the 2008 version, a distinction is made between high-level white-collar employees with a gross annual salary of less than 120.000 EUR and those who earn more.
The following formula can be applied to high-level white-collar employees with a gross annual salary of less than 120.000 EUR:
(0,87 x length of service) + (0,055 x age) + (0,038 x gross annual salary/1000) - 1,95
For high-level white-collar employees with a gross annual salary exceeding 120.000 EUR, the updated formula is as follows:
(0,87 x lenght of service) + (0,055 x age) - (0,0029 x gross annual salary/1000) + 2,96
It is possible that the importance of the Claeys formula will decline in the next few years. By virtue of the so-called IPA-Act, new fixed and lower notice periods will apply as of 1 January 2012 to high-level white-collar employees whose employment contract runs from 1 January 2012. For the white-collar employees who are already in service or who will enter into service in the course of 2011, the current legal provisions continue to apply. For the latter category of high-level white-collar employees, the Claeys formula can still be used as a guideline. It is however possible that the parties and the labour tribunals will be inspired by the new lower notice periods of the IPA-Act when determining the notice periods of these employees.
For more information regarding the IPA-Act, we gladly refer to the Client Memorandum that will be sent to you soon. In this Client Memorandum we will also discuss the unification of the statutes of the blue-collar workers and the white-collar workers and the recent case law of the Constitutional Court in this respect.
For further information, contact: employment@liedekerke.com
