Government measures in key jurisdictions 5th edition - Flipbook - Page 11
Belgium
Insolvency
Has the
government made
any changes
to insolvency
legislation?
Contractual
Issues
What measures
have been taken
to reinforce
contracts?
•
The simple application procedure for temporary 'corona unemployment' due to force
majeure, for all sectors and companies, is maintained until 30 June 2021. This simple
procedure will be extended by one quarter.
•
The possibility of invoking temporary unemployment for the parent to care for a child in
case of quarantine is also extended until 30 June 2021.
•
Low-wage workers who have been temporarily unemployed for more than 52 days and who
work in a sector that has not yet reopened on 1 March 2021 will receive an additional
premium of up to Ä780 gross. The size of the premium depends on the number of days
these persons have been unemployed in the first three months of this year. This premium
will mainly benefit hospitality personnel, personnel in the cultural sector, the events sector.
•
From now on, it is possible to work in an essential sector while retaining 75% of the
temporary unemployment benefit. Previously, this was only possible in limited essential
sectors. For the time being, we will have to wait and see how this will be legally elaborated
and whether specific conditions will be imposed.
•
For the relevant topics, please refer to section Personnel at our Corona Desk website.
•
The Royal Decree n° 15 on the suspension of implementing executive measures and
other measures in favor of undertakings during the Covid-19 crisis was no longer
applicable.
•
On April 24, 2020, a number of measures were taken to ensure the continuity of
companies during Covid-19, which also have an impact on current contracts: agreements
concluded before April 24, 2020 cannot be (unilaterally) terminated or (judicially)
dissolved, in case of late payment as a result of Covid-19. The other contractual and/or
legal obligations and/or rights of the contracting parties remain in place, such as set-off,
the exception of non-execution, the right of retention, etc.
•
This measure expired on June 17, 2020 which means that the general legal and
contractual provisions apply.
•
No other specific legal regulations were taken to reinforce contracts. The parties will
have to analyse the applicable contractual provisions in order to establish whether the
current governmental measures can be invoked to suspend performance under the
contract or to lift liability for non or late performance. Contracts in Belgium often
include clauses relating to force majeure or hardship.
•
If parties did not include such provisions, Belgian law and jurisprudence of the highest
court provide for several mechanisms to protect contracting parties against adverse
events. Principles of good faith and obligations to renegotiate contracts can be invoked
under strict conditions. Application of these principles are casuistic and must be
assessed in detail.
•
For more details on this topic, please refer to section Contract at our Corona Desk website.
Government measures in key jurisdictions
11
