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what is the collective redundancy scheme

What Is the Collective Redundancy Scheme? Belgium 2026, Thresholds, 60‑day Window and Renault‑law Procedure

By Global Law Experts
– posted 2 hours ago

Last updated: June 4, 2026

Understanding what is the collective redundancy scheme is essential for every employer operating in Belgium, where strict numeric thresholds, a rolling 60‑day aggregation window and a mandatory information‑and‑consultation procedure, widely known as the Renault law, combine to create one of Europe’s most prescriptive collective lay‑off frameworks. Unlike many neighbouring jurisdictions that count dismissals over 90 days, Belgian law uses an uninterrupted 60‑day period, a difference that catches multinational employers off guard. This guide walks HR directors, in‑house counsel and business owners through the precise triggers, procedural steps, financial exposure and practical templates required to execute a lawful collective dismissal in Belgium in 2026. For broader context on Belgian labour law practice, consult the Global Law Experts directory.

Quick Answer, How the Collective Redundancy Scheme Works in Belgium

A collective redundancy in Belgium is triggered whenever an employer dismisses a minimum number of employees for economic or technical reasons, not related to the individual employees’ conduct, within any rolling, uninterrupted 60‑day period. Once that numeric threshold is crossed, the employer must follow the full Renault‑law information and consultation procedure before any dismissal notices are served.

The three pillars employers must understand are:

  • Trigger thresholds. The minimum number of dismissals depends on company size, as few as 10 employees at establishments with 20–99 workers.
  • The 60‑day rolling window. Belgian law aggregates all non‑personal dismissals within any continuous 60‑day period. The window is not fixed to a calendar quarter; it rolls forward with each new dismissal.
  • Renault‑law consultation. The employer must formally announce the intention to proceed with a collective dismissal, consult employee representatives and notify the regional labour authority, all before any individual dismissals take effect.

If you are an employer facing a potential collective redundancy in Belgium: (1) count all planned dismissals across the next 60 days, (2) check whether CBA No. 10 imposes a lower threshold for your sector, and (3) engage legal counsel before making any public announcement. A qualified Belgian labour lawyer can help you assess your obligations.

What Is the Collective Redundancy Scheme? Definition and Legal Basis

A collective redundancy, referred to in Belgian legal texts as a licenciement collectif or collectief ontslag, occurs when an employer terminates the contracts of a specified number of employees for reasons that are not inherent to the individual workers. The EU Directive 98/59/EC on collective redundancies sets the overarching framework, requiring member states to impose consultation duties, notification obligations and waiting periods whenever group dismissals exceed defined thresholds.

The purpose of the collective redundancy scheme is twofold: to protect workers from sudden, large‑scale job losses without meaningful dialogue, and to give public authorities advance notice so they can mobilise re‑employment support. Belgium has implemented and in several respects tightened these requirements through a layered set of national instruments.

EU Framework, Directive 98/59/EC

The EU Directive on collective redundancies applies to dismissals by employers that exceed numerical thresholds within a 30‑ or 90‑day reference period, depending on the member state’s choice. The Directive obliges employers to consult workers’ representatives “in good time” with a view to reaching agreement, and to notify the competent public authority. Belgium has transposed this Directive using a 60‑day reference period, a stricter window than the 90‑day default many other member states adopted.

Belgian Legal Architecture, Where the Rules Sit

In Belgium, the collective redundancy scheme is governed by several overlapping instruments. The core statutory framework rests on provisions of the Law of 3 July 1978 on Employment Contracts and Royal Decree provisions that implement the EU Directive. The so‑called Renault law, formally the Law of 13 February 1998 (as amended), establishes the information and consultation procedure specific to collective dismissals. Finally, Collective Bargaining Agreement No. 10 of the National Labour Council sets separate, sometimes lower, thresholds that trigger additional compensation obligations for dismissed workers. Employers must comply with all applicable layers simultaneously, and the interplay between these instruments is where most procedural errors arise.

When Does a Collective Dismissal Become ‘Collective’ in Belgium? Thresholds and the 60‑Day Window

The single most important question for any employer planning workforce reductions is whether the planned dismissals will cross the collective redundancy threshold. Belgian law measures this by looking at the total number of employees dismissed for non‑personal reasons within any continuous, uninterrupted 60‑day period at a given establishment. This 60‑day window in Belgium is rolling, it is not tied to fixed calendar dates, meaning that every new dismissal potentially reopens or extends the count.

The numeric thresholds vary by establishment size:

Establishment size (average workforce) Trigger threshold (within 60 days) Immediate employer obligation
Fewer than 20 employees No collective redundancy procedure under the national statutory threshold (but always check applicable CBA) Check sectoral CBA obligations; document each individual dismissal decision carefully
20–99 employees Minimum of 10 employees dismissed for non‑personal reasons within any 60‑day window Launch the full Renault‑law information and consultation procedure; notify employee representatives and the competent regional authority
100–299 employees At least 10 % of the average workforce dismissed within any 60‑day window Full Renault procedure; detailed filing with labour inspectorate; consider social plan obligations
300 or more employees Minimum of 30 employees dismissed within any 60‑day window Full Renault procedure; enhanced documentation; liaise with regional employment services for outplacement

How to Calculate the 60‑Day Rolling Window, A Stepwise Example

Consider an employer with 130 employees. On 1 March it dismisses 5 workers for economic reasons. On 20 March it dismisses another 4. On 15 April it lets go of 5 more. Each time, the employer must look back 60 days from the most recent dismissal and count every non‑personal termination within that window.

  1. 1 March: 5 dismissals in the rolling 60‑day window (1 Jan – 1 Mar). Total = 5. Below the 10 % threshold (which for 130 employees means 13). No collective procedure triggered yet.
  2. 20 March: Look back 60 days (19 Jan – 20 Mar). All 9 dismissals fall inside the window. Total = 9. Still below threshold.
  3. 15 April: Look back 60 days (14 Feb – 15 Apr). The 5 March dismissals, the 4 on 20 March and the 5 on 15 April are all within scope. Total = 14. This exceeds 10 % of 130 (i.e. 13), triggering the collective redundancy procedure retroactively.

The critical lesson: by the time the third wave of dismissals occurs, the employer has already crossed the threshold and should have been in the Renault‑law procedure from the outset. Retroactive non‑compliance exposes the employer to penalties, compensation claims and potentially void dismissals.

CBA No. 10 and Lower Thresholds, What to Watch

Even if the Renault‑law procedure does not apply, Collective Bargaining Agreement No. 10 of the National Labour Council may still be relevant. CBA No. 10 uses its own definition of collective redundancy, which in practice can capture a broader range of dismissals because the numeric thresholds can be lower depending on the sector. Where CBA No. 10 applies, dismissed employees may be entitled to specific collective redundancy compensation on top of their ordinary severance or notice period entitlements. Employers should always cross‑check the applicable sectoral CBA before concluding that no collective obligations exist.

Renault Law Belgium, Step‑by‑Step Information and Consultation Procedure

The Renault law, named after the Renault Vilvoorde factory closure in 1997, is the centrepiece of the Belgian collective redundancy scheme. It mandates a structured information‑and‑consultation procedure that must be completed before any individual dismissal notices can be served. The procedure cannot be a formality, Belgian courts have consistently held that the consultation must be genuine and conducted in good time.

Practical Timeline, From Announcement to Dismissal Notices

The procedure unfolds in clearly defined phases:

  1. Phase 1, Announcement of intention (Day 0). The employer informs the works council (or, where none exists, the trade union delegation, or failing that, the employees directly) of its intention to proceed with a collective dismissal. This is not yet a final decision. The announcement must include reasons, the number and categories of workers concerned, the period over which dismissals are envisaged, and any selection criteria being considered.
  2. Phase 2, Information and consultation (Day 1–30+). The works council or employee representatives must be given all relevant economic and social data. Mandatory topics include the possibility of avoiding or reducing the collective dismissal, alternatives to dismissal (such as temporary layoff, internal redeployment, voluntary departure schemes), and mitigating measures for affected workers (outplacement, retraining). There is no statutory minimum number of meetings, but industry observers expect at least two to three substantive consultation sessions to demonstrate good faith.
  3. Phase 3, Notification to authorities (after consultation). Only after meaningful consultation has taken place may the employer notify the competent regional employment authority (VDAB in Flanders, Actiris in Brussels, Forem in Wallonia) of the planned collective redundancy. The notification must include all mandatory data items listed in the legislation, a summary of the consultation conducted, and the outcome or status of negotiations.
  4. Phase 4, Waiting period (30 days from authority notification). A statutory waiting period, typically 30 days, runs from the date the authority receives a complete notification. During this time, no dismissal notices may be served. The authority may extend this period if it considers the consultation incomplete.
  5. Phase 5, Execution of dismissals (Day 61+). Only once the waiting period has elapsed may the employer serve individual termination notices or pay indemnities in lieu of notice. Selection criteria used must be objective and non‑discriminatory.

Selection Criteria, Objective and Non‑Discriminatory Tests

Belgian law does not prescribe a single mandatory selection method, but employers must apply criteria that are transparent, consistent and defensible. Commonly accepted criteria include function, skills and qualifications relevant to the restructured organisation, seniority, and performance records. Criteria based on protected characteristics, age, gender, disability, ethnic origin, trade union membership, are prohibited and will expose the employer to additional discrimination claims.

Industry observers recommend creating a documented scoring matrix that weights each criterion before any names are attached to the process. This approach creates an auditable trail that can be presented to the works council during consultation and to a labour court if the selection is later challenged.

What the Authority Checks After a Renault Procedure

The regional employment authority reviews the notification for completeness and may ask questions about the consultation process. While the authority does not “approve” or “reject” the collective dismissal in most cases, it may extend the 30‑day waiting period if it considers that consultation was insufficient or that outplacement measures are inadequate. In practice, the authority also uses the notification to coordinate activation and outplacement services for affected workers.

Practical Employer Checklist, From Planning to Notices

Executing a lawful collective redundancy in Belgium requires meticulous preparation. The following checklist reflects the key actions from the moment a restructuring is first contemplated through to final dismissal notices.

Pre‑Announcement Planning

  • Aggregate dismissal count. Map every non‑personal termination planned in the next 60 days. Include fixed‑term non‑renewals and mutual terminations if they are employer‑initiated.
  • Check all applicable thresholds. Verify thresholds under both the national statutory framework and CBA No. 10 for your sector.
  • Prepare the economic dossier. Compile financial statements, market data, operational rationale and any board resolutions supporting the decision.
  • Draft selection criteria. Build an objective scoring matrix and test it for potential discriminatory impact before applying it to named individuals.
  • Appoint a project team. Designate internal leads (HR, legal, finance) and external counsel. Assign responsibility for minute‑taking and record‑keeping.

Sample Meeting Agenda and Minutes

A typical first consultation meeting agenda might include:

  1. Opening and confirmation of attendees
  2. Presentation of the employer’s intention and reasons (economic, technical or organisational)
  3. Presentation of the number, categories and timeline of envisaged dismissals
  4. Overview of proposed selection criteria
  5. Discussion of alternatives to redundancy
  6. Discussion of mitigation measures (outplacement, retraining, social plan)
  7. Agreement on next meeting date and information requests from employee representatives
  8. Closing and confirmation that minutes will be circulated

Minutes should record who spoke, what was discussed, what questions were raised by employee representatives, and how the employer responded. Minutes do not need to be signed by both parties, but distributing them promptly and inviting corrections demonstrates good faith and strengthens the employer’s procedural defence.

Sample Employer Notice to Works Council

A notice of intention should be concise but comprehensive. The likely practical elements include: identification of the employer entity, the establishment(s) concerned, the economic or technical reasons for the proposed collective dismissal, the number and categories of workers affected, the envisaged period for execution, the proposed selection criteria, and a statement that the employer wishes to consult with representatives with a view to exploring alternatives. This notice should be delivered simultaneously to the works council (or union delegation) and to the competent regional employment authority.

Redundancy Scoring Matrix, Brief Overview

A robust selection scoring matrix typically includes four to six weighted criteria. A common structure assigns points across the following dimensions:

  • Skills and qualifications relevant to the future organisational structure (e.g., weighting 30 %)
  • Performance assessment based on documented, recent evaluations (e.g., weighting 25 %)
  • Seniority within the company (e.g., weighting 20 %)
  • Adaptability and retraining potential (e.g., weighting 15 %)
  • Social considerations such as family situation, proximity to retirement (e.g., weighting 10 %)

Each employee in the affected pool receives a score. The employees with the lowest aggregate scores are selected for dismissal. The matrix should be prepared and validated before individual names are attached, and the methodology should be shared with the works council during the consultation phase.

Financial Exposure and Remedies, Severance, Protective Awards and Penalties

Non‑compliance with the collective redundancy scheme in Belgium carries significant financial and legal consequences. Employers face exposure on several fronts.

Severance pay in Belgium is calculated based on the notice period the employer would otherwise be required to give, or, where the employer terminates immediately, an indemnity equal to the remuneration that would have been earned during that notice period. Notice periods in Belgium are among the longest in Europe, scaling with seniority, and can amount to many months of pay for long‑serving employees.

Where the Renault‑law procedure has not been followed or has been conducted deficiently, affected employees may claim additional compensation. Belgian courts can award damages for procedural irregularity, and employees may also seek reinstatement or challenge the validity of the dismissal entirely. Collective redundancy compensation under CBA No. 10, a lump‑sum payment on top of ordinary severance, may also apply where the relevant thresholds are crossed.

The broader enforcement trend across Europe points toward increasingly severe penalties for employers that bypass or shortcut collective consultation obligations. Early indications suggest that Belgian labour courts are paying closer attention to the quality and timing of the consultation process, not merely whether a procedure occurred on paper. Employers that phase dismissals across artificial intervals to avoid triggering the collective redundancy scheme are especially at risk. If a court determines that the staging was designed to circumvent the law, the full Renault‑law procedure may be deemed applicable retroactively, with all associated penalties and compensation obligations.

Common Employer Mistakes and How to Avoid Them

Practical experience reveals recurring patterns of non‑compliance. Avoiding these pitfalls can save employers significant cost and legal exposure.

  • Miscalculating the rolling window. The most frequent error is treating the 60‑day window as a fixed calendar period rather than a rolling one. Every new dismissal resets the lookback, and employers that fail to aggregate across waves of terminations may discover, too late, that the collective threshold was crossed weeks earlier. Fix: Maintain a live dismissal register that automatically recalculates the rolling 60‑day count after every non‑personal termination.
  • Staging dismissals to avoid the Renault law. Some employers deliberately space dismissals in small batches to remain below the numeric threshold in any single 60‑day period. Belgian case law treats deliberate phasing as an abuse of right. Where a court finds that the employer intended to circumvent the collective redundancy procedure, the likely practical effect will be retroactive application of the full Renault‑law obligations, including consultation requirements, notification duties and potentially compensation to all affected workers. Fix: If the overall restructuring plan contemplates dismissals that would exceed the threshold when viewed as a single project, initiate the collective procedure from the outset.
  • Notifying the wrong representative body. The Renault law requires consultation with the works council, or in its absence the trade union delegation, or failing both the employees directly. Consulting the wrong body, or skipping a tier, invalidates the procedure. Fix: Confirm the correct employee representation structure at your establishment before the first announcement. Document that confirmation in writing.
  • Deficient minutes and record‑keeping. Employers that cannot produce contemporaneous records of what was discussed, when, and how employee representatives’ proposals were considered face an uphill battle in any subsequent litigation. Fix: Appoint a dedicated minute‑taker for every consultation meeting. Circulate draft minutes within 48 hours and retain all versions.

Conclusion, Quick Compliance Checklist for the Collective Redundancy Scheme in Belgium

Successfully navigating the Belgian collective redundancy scheme requires discipline at every stage. The following checklist summarises the key actions:

  • Count all planned non‑personal dismissals within any rolling 60‑day window, and keep counting as new terminations are added.
  • Check thresholds under both the national statutory framework and CBA No. 10 for your sector.
  • If the threshold is met or likely to be met, launch the Renault‑law information and consultation procedure immediately, before any individual notices are served.
  • Provide the works council or employee representatives with complete economic data and engage in genuine consultation.
  • Notify the competent regional employment authority and respect the statutory waiting period.
  • Apply objective, non‑discriminatory selection criteria and document the scoring methodology.
  • Retain detailed minutes, records and correspondence throughout the process.
  • Seek specialist legal advice at the earliest planning stage to avoid retroactive non‑compliance findings.

Understanding what is the collective redundancy scheme, and following its requirements precisely, is the single most important step an employer can take to protect the business from costly litigation, regulatory sanctions and reputational damage during a restructuring.

Need Legal Advice?

This article was produced by Global Law Experts. For specialist advice on this topic, contact Maxim Korthoudt at Bannister Advocaten, a member of the Global Law Experts network.

Sources

  1. European Commission, Collective Redundancies
  2. L&E Global, Termination of Employment Contracts in Belgium
  3. Eurofound, Belgium: Definition of Collective Dismissal
  4. Liedekerke, ECJ Clarification on Reference Period for Collective Dismissals
  5. DEL‑Law, Phasing Layoffs and the Renault Law
  6. Global Law Experts, Collective Redundancies Belgium
  7. Lexgo, Collective Dismissals: Information and Consultation Procedure
  8. PwC Legal, Collective Dismissals and the Belgian Labour Market

FAQs

What is the collective redundancy scheme?
It is the legal framework requiring employers to follow a formal information, consultation and notification procedure when dismissing a certain number of employees for economic or technical reasons within a defined time window. In Belgium, this window is 60 consecutive days. See the definition section above for full details.
The process begins with the employer announcing its intention to the works council, followed by mandatory consultation meetings, notification to the regional employment authority, a 30‑day waiting period, and only then service of individual dismissal notices. See the Renault‑law step‑by‑step section for the full timeline.
A collective dismissal occurs when an employer terminates the employment of a minimum number of workers, for reasons not related to the individual employees, within a continuous 60‑day period. The numeric threshold varies by establishment size (e.g., at least 10 dismissals for employers with 20–99 employees). See the thresholds table above.
Every non‑personal dismissal starts a rolling 60‑day lookback period. Each subsequent dismissal within that window is aggregated. If the cumulative total crosses the applicable threshold, the collective redundancy procedure is triggered retroactively. Employers must track this count in real time. See the worked example above.
The Renault law requires employers to consult with employee representatives before executing any collective dismissal. Failure to comply can result in damages, additional compensation obligations and potentially void dismissals. The law also mandates notification to labour authorities and a waiting period. See the step‑by‑step section above.
Deliberately phasing dismissals to stay below the collective threshold is treated as an abuse of right under Belgian case law. Courts can apply the full Renault‑law procedure retroactively if staging is identified, exposing the employer to penalties and compensation claims for all affected employees. Employers should consult specialist counsel before adopting any phased approach.
Employees may claim damages for procedural irregularity, collective redundancy compensation under CBA No. 10 (where applicable), and potentially challenge the validity of the dismissal itself. The financial exposure compounds when added to ordinary severance pay obligations, making non‑compliance a costly risk. See the financial exposure section above.

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What Is the Collective Redundancy Scheme? Belgium 2026, Thresholds, 60‑day Window and Renault‑law Procedure

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