|The Claeys Formula 2011|
The Act of 3 July 1978 on Employment Contracts does not give a precise formula or method for calculating the notice period of the so-called 'higher' white-collar employees. These are white-collar employees who earn a gross annual remuneration of at least 30.535 EUR (in 2011).
Since 1973, Thierry Claeys regularly analyses the case law of the labour courts and courts of appeal with regard to the notice periods they have granted. This results in a statistical formula that can be used as a practical tool to calculate what constitutes an appropriate notice. This formula takes into account the parameters seniority, age and remuneration of the white-collar employee at the time of dismissal.
In 2011, the formula was renewed based on the analysis of 643 judgements, issued in 2010 by labour courts and courts of appeal from all over the country. This analysis shows that an alternative formula needs to be used for the remunerations of at least 120.000 EUR, because the judges do not take the parameter 'remuneration' into account without limitation in their determination of the notice periods.
The Claeys formula 2011 for a gross annual remuneration equal to or less than 120.000 EUR:
The Claeys formula 2011 for a gross annual remuneration exceeding 120.000 EUR:
For the high remunerations the correction factor is positive (+ 2,96), but the remuneration factor is negative (- 0.0029). This means: the higher the remuneration, the lower the result. This lower result needs to be nuanced. The factor is 0,0029, which means that in case of a gross annual remuneration of 200.000 EUR the deduction in the result will be 0,6 months.
This new formula shows for the first time in a mathematical way that judges limit the application of the Claeys formula at a certain level of remuneration, or even slightly correct it in a negative way.
The Calculator allows you to easily calculate the length of the notice period or the amount of the severance indemnity based on the Claeys formula. You must simply fill in the variables relevant to the employee in question.
In the feature 'relevant case law' you can find the references of 10 relevant judgements.