12/07/25

NLC extends medical Unemployment with Company Allowance (UCA), end-of-career time credit and temporary unemployment until 31 …

On 30 June 2025, the National Labour Council (NLC) concluded several collective labour agreements (CLAs) concerning unemployment with a company allowance (UCA), end-of-career time credit, and temporary unemployment for white-collars. These CLAs extend the medical UCA scheme and the current arrangements for end-of-career time credit from the age of 55 for employees with a long career, those in physically demanding jobs, employees with disabilities, and those employed in companies undergoing restructuring or facing economic difficulties. Finally, the supplementary scheme for temporary unemployment due to economic reasons for white-collars has also been extended.

The government agreement of 31 January 2025 stipulated that new entries into UCA would be discontinued, except for the medical UCA scheme. Although no legislation has yet been adopted in this regard, the NLC has proactively extended the medical UCA scheme by six months through CLA No. 173. The other UCA schemes are not being extended, in line with the government agreement.  

The government agreement also proposed changes to the eligibility conditions for end-of-career jobs (time credit). However, the Group of 10 reached an agreement to uphold the existing CLAs, which were valid until 30 June 2025. As a result, employees aged 55 and over with a 35-year career, those in physically demanding jobs or in companies recognised as undergoing restructuring, or those with disabilities, could still benefit from an end-of-career job arrangement, provided the necessary sectoral or company-level CLAs were concluded.

With the expiration of the NLC’s CLAs on 30 June 2025, this possibility would have lapsed. Since no legislative initiative has yet been taken to amend the current end-of-career job scheme, the NLC has now extended the existing arrangements for half-time or one-fifth time credit from the age of 55 until 31 December 2025 through CLAs No. 174 and 175.

Finally, CLA No. 176 extends the supplementary scheme for temporary unemployment due to economic reasons. This ensures that companies without a sectoral or company-level arrangement can still implement temporary unemployment for white-collars.

Key message

In case of dismissal of older employees with disabilities or serious medical conditions, the medical UCA scheme may apply.

End-of-career jobs remain available under the current conditions for employees aged 55 and over until the end of December 2025.

Companies without a sectoral or company-level scheme can continue to apply temporary unemployment for economic reasons.

dotted_texture