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The Fund’s mission is to indemnify the employees who have been struck by the closing-down of their company.
The Fund can also intervene in certain specific situations, such as take-overs after bankruptcy, conventional transfers preceding the closing-down or simply in case the employer is in default and does not fulfil his financial obligations towards his employees.
It is also laid down by law that the Fund can intervene when a company closes down due to force majeure.
Finally, as a result of the “Generation pact”, the Fund has also been charged with the payment of the company bonus to employees who take up work again.
If the conditions of the closing-down legislation are met, the Fund pays several kinds of indemnities to the employees: closing-down indemnities, contractual indemnities, transition indemnities, company bonuses and additional remunerations due to certain protected employees.
The Fund also finances a percentage of the temporary unemployment benefits on behalf of the National Employment Office.
For companies without a business oriented or commercial goal or for liberal professions, the legislator has limited the Fund’s mission to the intervention in the field of contractual indemnities and the company bonuses. The possibility remains though to enlarge the Fund’s missions for these companies, by Royal Decree.