The Constitutional Court ruled on Thursday that it is discriminatory to give those who have been claiming unemployment benefits the longest a shorter window to transition off unemployment benefits, compared to those who have been unemployed for a shorter period.
Trade unions estimate that around 100,000 people were affected by the Federal Government's transitional scheme and have been granted a 'reprieve'.
Reforms to unemployment benefits introduced by the Federal Government, led by Prime Minister Bart De Wever (N-VA) cap the length of time someone can receive benefits. Prior to the reforms, Belgium had no cap on how long someone could claim unemployment benefits.
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By default, this limit is now set to 12 months, with a further 12 months depending on employment history. Transitional caps were set up to move those already on unemployment benefits off the old system. The Court has upheld this part of the law.
"I welcome the Constitutional Court’s decision, which strengthens the foundations of the unemployment reform and thereby provides the necessary legal certainty," said Deputy PM and Minister for Work, Economy and Agriculture David Clarinval (MR). "The Court has validated and confirmed these elements. We take note of the remark concerning the transitional period and are analysing its implications."
For those who had been on unemployment benefits for more than four years on 30 June 2025, transitional caps were set at six, eight, or nine months, depending on how long they had been receiving benefits.
The court has now ruled these transitional caps discriminatory.
Their ruling effectively cancels the existing transitional arrangements for those who have been receiving unemployment benefits longer. The Federal government now has to come forward with a revised plan, and potentially compensation for those affected.
A statement from Clarinval's office said that job seekers and payment agencies "will receive instructions and detailed information as soon as possible" on a revised plan.
Belgium's reforms to unemployment entitlements
Unemployment reforms were introduced as part of wider government plans to reduce Belgium's budget deficit and encourage more people to go back into employment.
The results have been mixed, with previous benefit recipients switching to sickness insurance, some finding work and others starting businesses.
While the Court ruled against the transitional caps, it upheld several other aspects of the law and dismissed appeals brought primarily by trade unions.
The Court found that introducing a default cap for the first time is justified, given the objective of increasing the employment rate and ensuring the sustainability of Belgium's social security system.
It also found that reducing integration benefits from 36 months to 12 months for young jobseekers was legal.
Integration benefits exist because those under 25 have often not worked long enough to build up the right to unemployment insurance.
In exchange for an integration benefit, claimants must complete a professional integration internship for 6 months and show an active job search.
The Court ruled this week on four of the seven appeals brought against the law. A spokesperson from the Court confirmed to The Brussels Times that it has yet to rule on the three remaining appeals.
