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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.
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:
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.
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.
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.
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.
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 |
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.
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.
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.
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.
The procedure unfolds in clearly defined phases:
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.
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.
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.
A typical first consultation meeting agenda might include:
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.
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.
A robust selection scoring matrix typically includes four to six weighted criteria. A common structure assigns points across the following dimensions:
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.
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.
Practical experience reveals recurring patterns of non‑compliance. Avoiding these pitfalls can save employers significant cost and legal exposure.
Successfully navigating the Belgian collective redundancy scheme requires discipline at every stage. The following checklist summarises the key actions:
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.
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.
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