Annual vacation scheme – Financial soundness and assessment of the management of vacation funds: 2023 follow-up of the recommendations

general assembly on October 18, 2023

In 2021, the Belgian Court of Audit examined the extent to which the solidarity transfer mechanism among the annual vacation funds set up in 2017 actually contributed to the financial soundness of the scheme. It also analysed the system of accountability introduced at the same time to guarantee the proper management of vacation funds. It concluded that the solidarity transfer mechanism was totally separate from the amount of benefits to be financed and that the system of accountability was not an adequate incentive to guarantee the proper management of vacation funds. In its 2023 report, the Court noted that these mechanisms and the assimilation in 2020–2022 of days of temporary unemployment to days worked have had a significant impact on the financial situation of the scheme, which was already in deficit. The Court concluded that out of the eight recommendations made in 2021, three are being implemented and five have not been followed.