I promised to write a more detailed hub about how the system works in Belgium. Today I will give a more detailed overview on the subject of UNEMPLOYMENT. Job loss is a huge problem all over the world these days and a socialized social security system would help those in need. Here in Belgium we also have pros and cons about our system but I would not want to trade with any unemployed American right now. Everybody fears layoffs at the moment and no job is secure. This is how it works in Belgium

I would recommend to read my first hub on this subject before you start reading this.

Below, the sector unemployment is principally discussed in its quality of a provider of a replacement income in case of involuntary loss of employment. However, the sector has a much larger action radius: support in case of temporary unemployment, support in case of partial resumption of work, support to persons who are in training, support to resumption of work for high-risk groups, support to the development of neighborhood services, support to baby minders, support in case of total or complete interruption of working time (career interruption/time credit), etc.

In principle, the sector of unemployment is exclusively aimed at salaried employees. Self-employed people can never resort to the unemployment scheme, as they do not pay any contributions for it. Self-employed persons who become unemployed, but who have worked as salaried persons before, can still be entitled to unemployment benefits on particular conditions. Civil servants do not contribute to the unemployment scheme either, since they are permanently appointed and they cannot become unemployed. Today, however, civil servants too may be subject to dismissal. That is why a very specific scheme was elaborated, so that they may eventually be entitled (under certain conditions) to unemployment benefits. For the military, there is a similar scheme.

As a summary, we can say that all salaried work, which is subject to the contribution scheme for unemployment, can give the right to unemployment benefits. This is e.g. not the case for "occasional work", student contracts and domestic staff who do not live in the house of their employer and who do not work more than four hours a day in the service of one employer or 24 hours or more a week for several employers.

A. Allowability and entitlement conditions

The mere fact that you are subject to the social security scheme for salaried persons is not sufficient to be able to use your right to unemployment benefits. Indeed, you must be able to prove a sufficient number of worked or assimilated working days during a particular reference period. This reference period is the period preceding the demand for unemployment benefits. Both the required number of working days and the duration of the reference period depend of your age. This is shown in the scheme below:

Number of worked  days:

- Younger than 36: 312 days

- From 36 onwards but younger than 50: 468 days

- 50 years and older: 624 days

Work performed abroad can, under certain conditions, be taken into account for the calculation of the number of working days as a salaried worker to be proved in the above-mentioned reference period.

Persons who voluntarily did part-time work have to prove the same number of half-time working days in the above-mentioned reference period, extended with sic months.  There are exceptions where the voluntary part-time worker is assimilated with a full-time worker.

In order to use your right to unemployment benefits, you also have to satisfy specific granting conditions. We list them right below.

1) You may not receive any salary

An entitled person who still receives a notice fee or damages for dismissal from his former employer cannot yet receive unemployment benefits.

2) Not do any labour

An unemployed person may only work for is own account within the limits of the normal management of his own property and his work may not qualify for the economic traffic of goods and services. An unemployed person should neither do any labour providing him with a wage or any other material advantage for him or his family. For instance, he cannot build his own house. If you work for someone else, it is always believed that this brings about particular advantages. You have to prove the contrary or you have to have requested authorisation beforehand. Some profitable activities - additional jobs - can be exercised, provided you already did so when you were employed as a salaried person three months before the demand for unemployment benefits. Furthermore, these activities have to take place between 18 pm and 7 am and must be officially declared beforehand and some activities are totally excluded.

3) Be unemployed independent of your will

In most cases, persons who caused their unemployment themselves can only obtain allowances after a period of exclusion.  This is judged case per case.

4) Be available for the labour market

This means that you should be registered as a jobseeker with the VDAB (Flemish Region), the FOREM (Walloon Region) or ACTIRIS (Brussels Region) and that you have to accept every job that can be considered appropriate.  This also means that you should actively seek for a job.  Since 2004, there is a systematic follow-up and those who refuse a contract with regard to "active seeking" or who do not respect it may be sanctioned.  This system has replaced the system of exclusion on the basis of long-term unemployment.

5) Be in a state of capacity for work

You should be fit for work.  If the person concerned is declared disabled, he can receive sickness or disability allowances.

6) Reside in Belgium

As from the age of 60 onwards, it suffices for older unemployed persons with maxi-exoneration and early retirees to effectively reside in Belgium for most of the year.

7) Not have reached the legal pension age yet

An unemployed who has reached the legal pension age is no longer entitled to unemployment benefits, starting from the 1st day of the month following the month in which he has reached that age. For men, the legal pension age is 65 years. For women, it is now 64 years (since 2006), and it will be 65 years in 2009 (see the chapter 'Pensions').

There are a lot of exceptions to these conditions. Some of these have already been mentioned. For instance, early retirees do not have to hold a control card, they can keep the allowances in case of disability and they are, under certain conditions, allowed to exercise a non-profit activity for their own account (for instance: rebuild their own house) or to start an additional job that was not exercised simultaneously with salaried work for a period of three months. Under certain conditions, older unemployed persons can also be exonerated from these last three conditions.

B. Benefits

1) Being unemployed after a full-time employment

In case of full unemployment, a full-time employee can receive allowances for all the days of week, except for Sundays. A full-time position requires two conditions to be met: the normal contractual labour time corresponds to the maximum labour time in the company and the salary corresponds with the wages for a full working week.  Allowable employees (cf. above) who receive a salary at least equalling the average minimum monthly income are also considered as full-time employees.  Persons entitled to allowances for all the days of the week (except for Sundays) can maintain this right, even after a part-time resumption of work.  You must then file a demand to be acknowledged as a "part-time employee with maintained rights" at the beginning of this part-time employment.  During this part-time job and on particular conditions, you can receive an income guarantee allowance next to your salary.

A persons who does not satisfy the conditions to be assimilated to a full-time employee and neither satisfies the conditions to be a part-time employee with maintained rights, may receive allowances as a voluntary part-time employee.  In case of full unemployment, you can then receive a reduced benefit proportionally to the contractual working time.  It should be a part-time employment of at least 12 hours or one third of a full-time employment.  In case of a resumption of work for less hours, you may maintain a certain number of allowances.

2) The amount of the benefits

The amount of the benefits depends of the family situation, the duration of the joblessness and the average day wage you received.

These are the various categories we can distinguish in the unemployment scheme:

- salaried persons with a family. In case of unemployment, they lose their only family income and they have dependants;

- singles living alone. They also lose their only family income, but they do not have any dependants;

- couples living together. They do not lose their only family income.

The basic unemployment benefit amounts to 40% of the average day salary. That average day salary is limited to a maximum of 70.48 EUR on 1 January 2008. This basic percentage of 40% may be completed with extra percentages, depending on the category and the duration of the joblessness.

We distinguish the following percentages:

a) adaptation allowance (15% or 18%, according to the family situation)

During the first year of unemployment, salaried persons with a family and single persons receive an extra allowance fixed at 15% of the average daily salary. For cohabitants, this extra allowance is fixed at 18% of the average daily wage.

b) loss of sole income (5%)

This allowance is meant for salaried persons with a family, who receive during the entire period of their unemployment, and for single persons, who receive it during the first 12 months of their unemployment. After one year of unemployment, the allowance for singles is raised to 10%.

c) family supplement (15%)

After one year of unemployment, salaried persons with a family lose the 15% or 18% (according to the family situation) adaptation allowance. As compensation, they receive a 15% supplement for family charge.

The second period of unemployment always begins after the first year of unemployment. The second period never ends for the two first categories of unemployed; it can only end for couples living together. For cohabitants, the end of the second period is determined on the basis of the professional career. In principle, the second period lasts three months, but it can be extended with three months for every year of occupational history as a salaried worker (including assimilated days). After this period, unemployed cohabitants arrive in the third period and receive a lump sum of 16.20 EUR, which under certain conditions is raised to 21.26 EUR (amount on 1 January 2008).

Seniority supplement

Aged unemployed persons of 50 years and older can benefit, from their first year of unemployment onwards, from a seniority supplement if they meet the following conditions:

- prove an employment of 20 years as a salaried person;

- not receive a conventional early retirement pension or an early retirement pension as a frontier worker and not have renounced a conventional early retirement pension.

The amount of the seniority supplement is determined on the basis of the family category the unemployed belong to as well as his age.

Apart from that, we can also mention the waiting benefits. Waiting benefits are reserved for young people who, after their studies and after their waiting period, are admitted to the unemployment scheme. They receive lump sum waiting benefits depending on their age and their family situation.

3) Procedure

However, you cannot obtain unemployment benefits just like that. You must file a demand with the credit institution of your choice. This is the institution created by each trade union or the public 'Auxiliary Fund for Unemployment Benefits' (HVW - CAPAC).

C. Exclusion and sanctions

Some unemployed may be excluded from receiving benefits and can get sanctions. These are the major reasons to get excluded from the unemployment scheme:

a) Voluntary unemployment

Unemployment is voluntary in case of:

- abandonment of an appropriate employment without a legitimate reason;

- dismissal as a reasonable consequence of a wrong attitude on behalf of the employee;

- not presenting oneself, without a valid justification, for a job interview with an employer requested by the employment services or refusing an appropriate job offer;

- not showing up, without a valid justification, with the competent service for employment and/or professional training;

- refusal or failure of a mobilisation course;

- negative evaluation of the efforts to find a new employment;

- for workers of at least 45 years old who have been laid off: the refusal to participate in or to collaborate on an outplacement programme; the fact of not having asked (if at least one year of seniority in the company can be proven) to receive outplacement services to which they were entitled; the fact of not being registered with a compulsory employment cell.

b) Unavailability for the labour market

- as a consequence of a regulation or a factual circumstance, such as prenatal or postnatal leave;

- an unemployed who sets conditions for his re-employment.

c) The omitting of an obligatory statement, a late statement, an incorrect or incomplete statement or the use of false documents, can lead to the recovery of unjustly received benefits and exclusion for the entitlement to benefits for some time.

When fraudulent intentions are proven, legal proceedings may be undertaken.

Before any decision imposing a penalty or exclusion is taken, the unemployed person is called in by the unemployment bureau in order to hear his defence.  During this hearing, he is informed of the facts he is charged with, upon which he can refute these facts, give arguments and add new pieces to the file.  He can have himself represented or assisted by a union delegate or a lawyer.

When the director decides to impose a penalty or exclusion, this decision is notified to the person concerned.  This decision has to be motivated de facto and de jure and the notification has to mention the procedure that has to be followed to lodge an appeal in case the unemployed person contests the decision.  As from the notification of the decision, the unemployed person has three months to lodge his appeal.

D. Early retired and young people finishing school

The special category of the early-retired is reserved to older employees. Regardless of their family situation, if they leave for early retirement, they are entitled to unemployment benefits until their actual retirement, amounting to 60% of their ceiled wage. They shall also obtain a supplementary indemnity on behalf of their former employer.

Young people finishing school do not immediately receive a tideover allowance. They first have to fulfil a waiting period (they have to register as jobseeker and be available for the labour market).  During this waiting period they still obtain family benefits. After the waiting period, which is determined on the basis of their age, they can introduce an application for a tideover allowance.  If all the conditions are fulfilled (e.g. having finished the required studies and valid accomplishment of the waiting period), they can receive a lump sum tideover allowance, which is also determined on the basis of their family situation and their age.

E. Employment measures

Several measures have been taken over the past few years to promote employment and decrease joblessness. We refer among others to the so-called 'social Maribel' operations, the first employments and the harmonisation of job schemes. This series of measures is designed, in the first place, to encourage employers to recruit more employees from specific categories, by granting them a reduction of social security contributions.

Other measures were taken to activate unemployment benefits (among others: the "Activa" job scheme, neighbourhood services and jobs, professional transition programmes an the local job agencies) so that, in case of recruitment of long-term unemployed, part of the wage is paid by the RVA - ONEM.

Moreover, the three Regions in Belgium have created additional employment programmes, particularly oriented to the long-term unemployed.