Claeys Formula
Encyclopedia
The Claeys Formula is used in Belgium
by the practitioners of social law to evaluate the notice period that has to be respected when an employee is dismissed. This formula derives from a statistical analysis of the case law
and takes into account three variables: length of service, age and remuneration.
In early 2008, the Claeys Formula was revised and updated based on 2,591 relevant judgments pronounced between mid 2003 and mid 2007. The formula now reads as follows:
(0.87 x Length of service) + (0.06 x Age) + (0.037 x Remuneration x index 2007/index month of dismissal) - 1.45
The analysis of the case law also revealed that where the annual remuneration
equals or exceeds 120,000.00 €, the coefficient
for the remuneration has to be modified, thus:
(0.87 x Length of service) + (0.06 x Age) + (0.029 x Remuneration x index 2007/index month of dismissal) – 1.45
Belgium
Belgium , officially the Kingdom of Belgium, is a federal state in Western Europe. It is a founding member of the European Union and hosts the EU's headquarters, and those of several other major international organisations such as NATO.Belgium is also a member of, or affiliated to, many...
by the practitioners of social law to evaluate the notice period that has to be respected when an employee is dismissed. This formula derives from a statistical analysis of the case law
Case law
In law, case law is the set of reported judicial decisions of selected appellate courts and other courts of first instance which make new interpretations of the law and, therefore, can be cited as precedents in a process known as stare decisis...
and takes into account three variables: length of service, age and remuneration.
In early 2008, the Claeys Formula was revised and updated based on 2,591 relevant judgments pronounced between mid 2003 and mid 2007. The formula now reads as follows:
(0.87 x Length of service) + (0.06 x Age) + (0.037 x Remuneration x index 2007/index month of dismissal) - 1.45
The analysis of the case law also revealed that where the annual remuneration
Remuneration
Remuneration is the total compensation that an employee receives in exchange for the service they perform for their employer. Typically, this consists of monetary rewards, also referred to as wage or salary...
equals or exceeds 120,000.00 €, the coefficient
Coefficient
In mathematics, a coefficient is a multiplicative factor in some term of an expression ; it is usually a number, but in any case does not involve any variables of the expression...
for the remuneration has to be modified, thus:
(0.87 x Length of service) + (0.06 x Age) + (0.029 x Remuneration x index 2007/index month of dismissal) – 1.45