Belgium's New Unemployment Benefit Cap Sparks Union Backlash and Legal Battle
April 17, 2025
Belgium's federal government plans to implement a two-year limit on unemployment benefits, which is expected to affect approximately 145,000 individuals, according to estimates from the trade union FGTB.
Under the new proposals, those long-term unemployed individuals under 55 will receive a letter in July 2025, urging them to seek employment within six months or risk losing their benefits.
Prime Minister Bart De Wever argues that Belgium is among the last countries allowing individuals to choose not to work, suggesting that the reform could incentivize job seeking for those in good health.
However, FGTB president Thierry Bodson warns that the reform could imbalance the unemployment benefit system, prioritizing incentives over the essential insurance aspect that protects workers.
Bodson has emphasized that the state must respect a notice period when limiting unemployment benefits that were previously granted indefinitely.
The FGTB is opposing these government plans, particularly as they will cut benefits for at least 100,000 long-term unemployed individuals starting in January 2026.
Concerns have been raised that local social welfare organizations (CPAS) may be overwhelmed by requests for assistance if the benefit cuts are enacted.
While the FGTB will not directly contest the two-year limit, it plans to encourage affected members to appeal the decision with the union's support.
The union has pledged to provide legal assistance to any member who chooses to challenge the benefits cut in court, citing the need for a proper notice period before such rights are withdrawn.
In their legal efforts, the FGTB plans to leverage article 23 of the Belgian constitution, which guarantees rights to social security and assistance.
Belgium's Council of State has provisionally approved the measure, and federal employment minister David Clarinval is currently in talks with trade unions and regional employment ministers before presenting the bill to parliament by summer 2025.
UCLouvain economics professor Bruno Van der Linden has warned that many long-term unemployed individuals may face discouragement and disengagement, complicating their path to employment.
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