Since 1 November every indemnity subject to social security contributions and which is due on account of the termination of the employment contract, will no longer be compatible with unemployment benefits.
Until 1 November 2013 it was possible to combine unemployment benefits and several indemnities (other than the indemnity in lieu of notice) which were accorded on account of the termination of the employment contract.
Since 1 November every indemnity, which is paid on account of the termination of the employment contract, and on which social security contributions are due since 1 October 2013, constitutes an integral part of the remuneration (see Newsflash of 30 September 2013 or Royal Decree of 24 September 2013). Such indemnities are no longer compatible with unemployment benefits.
The new rules are applicable to employees whose employment contract is terminated after 31 October 2013 (in case of termination of employment with notice period, the date of termination needs to fall after 31 October 2013).
Numerous indemnities are no longer compatible with unemployee Benefits, for example, the compensation for protected status (for maternity leave, etc.), the compensation for loss of clientele, the indemnity for employment security, etc.
> Action point
Since 1 November 2013 one needs to mention all indemnities on which social security contributions are due on the (new) form C4, stating whether they cover a certain time period or not.