The social partners within the metal sector (i.e., Joint Committee (JC) 111 for blue-collar workers, and JC 209 for white-collar workers) have reached a sector agreement for the 2023-24 year, which includes the possibility to exchange a part of the industrial year-end premium for a leased bicycle and/or extra vacation days.
Background
Currently, the sector collective labour agreements (CLAs) in JC 111 and JC 209 addressing the year-end premium do not allow its conversion; instead requiring it to be paid in cash. This means that it is not possible to convert all or part of the year-end premium into a budget “pot” that can be used in a flexible benefits plan to spend on other benefits, whereas some other industries have included this option in their sector CLA.
However, as from the 2023 year-end premium this is due to change with the new sector agreement. At present, the possibility for conversion is limited to companies within the metal industry where the premium amounts to at least a full monthly salary. The company must have a place of business in the Flanders region (however, the agreement in JC 209 also foresees a possible extension for companies with places of business in multiple different regions, including Flanders).
Conditions
A company falling under the scope of JC 111 or JC 209 can decide to convert a maximum of 50% of the year-end premium, in which case a company labour agreement should be concluded. This conversion must be cost neutral for the company.
By doing so, employees can voluntarily choose to exchange the budget pot for a leased bicycle and/or additional vacation days. The individual’s choice should be recorded in an annex to the employment contract. If the employee does not opt for an alternative benefit or has remaining budget, this would still be paid out in cash.
Finally, the employees should be informed in advance of the consequences of converting the year-end premium.
Potential impact for your workforce
This new sector agreement is a unique opportunity to provide employees with a more flexible, individualised salary package, enabling them to set their own priorities and needs. Using a part of the year-end premium as a budget in a flexible benefits plan is easy to communicate to employees and can of course be combined with other budgets. When implementing the new scheme, the relevant union representatives should be involved.
Key contacts
Stijn Demeestere
Stijn Demeestere joined Deloitte’s Global Employer Services in 2013 before becoming head of Deloitte Legal - Lawyers’ People Law team in 2015. In 2020 he took on the additional role of Talent Partner. As he always wanted to advise and defend the rights of people, becoming a lawyer was a natural choice. Stijn has garnered ample expertise in all legal HR matters and particularly specialises in dismissal law (both individual and collective), maximising flexibility in salary and working conditions, the specific HR needs of top executives (social status, contract drafting) and various types of business reorganisations (M&A, cross-border mergers, outsourcing). Stijn particularly enjoys strategic communications and negotiations at individual and collective levels (social unrest, strikes), finding the spot where flexibility can be introduced against the rigid background of employment law, and is in his element when he can defend or plead in court. The contentious matters he handles are, amongst others, disputes over protected employees, white-collar crime, harassment, and the dismissal of high-level employees following allegations of misconduct. He advises HR directors of large and medium-sized companies, always looking for the right balance and where possible a cost-effective amicable settlement for the client in case of a dispute, and otherwise looking into tailoring individual schemes to the benefit of the company and working out how they can be applied to remuneration, different types of employment. Stijn combines a dry sense of humour with sharp analytical skills. He is regularly interviewed by De Tijd, had a weekly column in Jobat and is frequently invited as speaker at HR Fora. In addition, Stijn has written many books on topics such as protected employees and anti-discrimination as well as articles on, amongst others, the new dismissal legislation, outplacement and the bridge pension. Stijn is recognized by Chambers and Legal 500.
